MHADA lowers rates for extra area, allots permanent homes to tenants

Sanjeev Jaiswal, IAS, announced major relief measures including ground floor eligibility, premium adjustment, and accelerated allotments under MHADA's 100-Day Action Plan

In a major move aimed at benefiting thousands of long-suffering tenants of old cessed buildings in Mumbai, the Maharashtra Housing and Area Development Authority (MHADA) has announced a policy change that offers both financial relief and greater housing security.

 

At an event held at MHADA headquarters in Bandra (East), Sanjeev Jaiswal (IAS), Vice President and CEO of MHADA, revealed that eligible original tenants and residents listed in the Mumbai Building Repairs and Reconstruction Board’s (MBRRB) master list will now be charged only 100% of the Ready Reckoner Rate—instead of the earlier 110%—for the additional area allotted beyond their original unit size.

 

What makes this decision even more impactful is that it will be applied retrospectively to those declared eligible in the December 2023 lottery.  Jaiswal has directed MHADA to finalize a new policy framework to formalize this change by April 28, 2025.

 

105 Tenants Receive Permanent Homes in Latest Lottery

During the event at Bharat Ratna Gulzarilal Nanda Hall, MHADA also conducted a computerized lottery for 105 permanent tenements under the MBRRB.  Jaiswal personally presided over the event, congratulating winners and acknowledging the many hardships they had endured.

 

"Stability, security, and dignity are more important than property when it comes to finding a permanent residence," Jaiswal said. 

 

He pointed out how in many dilapidated buildings only upper floors are demolished, leaving ground floor tenants in limbo. These tenants were previously not considered eligible, but will now be added to the Master List and receive due compensation.

 

Fairness and Inclusion for Transit Camp residents

MHADA is also currently conducting a biometric survey of residents living in transit camps, categorizing them into Categories A, B, and C under the 2019 government resolution. Jaiswal announced that Category A residents, whose original buildings cannot be reconstructed, will be prioritized for inclusion in the Master List.

 

He also emphasized that in cases where the redevelopment of old and dangerous buildings is stalled—or buildings have been acquired by MHADA under Section 91(A)—tenants should be given the choice to be added to the master list.

 

Backed by State Leadership, Moving Toward Long-Term Housing Solutions

The relief measures come as part of a 100-day action plan announced under the leadership of Chief Minister Devendra Fadnavis and Deputy Chief Minister and Housing Minister Eknath Shinde, with a strong focus on resolving long-pending housing issues in Mumbai.

 

So far, the eligibility of 100 tenants has been determined, and Jaiswal has instructed that another lottery be held within the next six months to allot permanent homes to additional tenants of old cessed buildings.

 

December 2023 Lottery Set the Foundation

According to Shri Milind Shambharkar, MBRRB Chief Officer, the December 2023 lottery—which distributed 265 tenements—set the foundation for a transparent and efficient housing allocation system, significantly reducing complaints and increasing public trust.

 

"Many residents have waited decades in transit," said  Shambharkar. "Now they can finally call a home their own."

 

Breakdown of Latest Allotments

The lottery was organized into five categories based on the size of the tenements:

 

91 tenements (401–500 sq. ft.) for 2 applicants

 

28 tenements (300–316 sq. ft.) for 28 applicants

 

7 tenements (501–601 sq. ft.) for 1 applicant

 

1 tenement (701–753 sq. ft.) for 1 applicant

 

125 tenements (301–500 sq. ft.) for 73 applicants

 

MHADA will also hold a 10-day special camp to issue allotment letters to the successful beneficiaries, further expediting the move to permanent homes.

 

This combination of financial relief, eligibility expansion, and accelerated allotment marks a turning point in Mumbai’s housing policy for residents of old and often unsafe buildings. With the Master List being updated and further lotteries planned, many more tenants can now look forward to permanent, dignified housing—something that for years seemed just out of reach.