Maharashtra: President signs MHADA Act amendment bill, paves way for redevelopment of dangerous and cessed buildings

The President of India signed the amendments in the MHADA Act 1976, giving preference to the owner or the tenants of a residential building to submit a proposal for redevelopment once it is categorised by the civic body as dangerous for living. This has paved the way for the redevelopment of dangerous and cess buildings. This has given much-needed relief to the residents of such buildings and also to the realty sector. 

About 56 buildings in Mumbai that were declared dangerous but whose redevelopment was stuck have got relief with the President of India signing the bill amending the Maharashtra Housing and Area Development Act 1976, said Chief Minister Mr Eknath Shinde on Friday. 

What is the new law?

According to this new law, it will be possible to take over and redevelop the buildings that are incomplete / stalled due to various reasons through MHADA. 

MHADA can directly take over such buildings and redevelop them. Also, if the BrihanMumbai Municipal Corporation declares a cessed building as dangerous, the building owner will first be given an opportunity to redevelop the building. If he does not submit a proposal for redevelopment within 6 months, a second chance will be given to the tenants. If they also do not submit a proposal for redevelopment within 6 months and if they do not redevelop within the prescribed period, MHADA can take possession of those buildings and redevelop them. 

It provides compensation to the owner of the concerned buildings or the plot holder at the rate of 25 percent of the Ready Reckoner (RR) or 15 percent of the built-up area of the sale component, whichever is higher. Hence, the stalled redevelopment of cess (cess) buildings for years will now be taken up.

According to the Chief Minister’s Office, the state government on July 28, 2022 had submitted all the documents, all the photographs of such pending redevelopment plans, and pending court cases to the Union Home Ministry.

Deputy Chief Minister Mr Devendra Fadnavis said that If the residents or owner fail to submit any proposal for its redevelopment, the MHADA has now been empowered to take the project in its hands for the same. The president has cleared the way for the redevelopment of cessed buildings in the metropolis, he added.