Mumbai: MHADA Proposes ₹5,000 Rent Hike For BDD Chawl Residents Amid Redevelopment

MHADA has proposed increasing the rent allowance for BDD Chawl residents from Rs 25,000 to Rs 30,000 as part of its redevelopment project in Worli and Naigaon NM Joshi Marg. The 100-year-old chawls are being replaced with modern apartments, offering residents spacious homes. The rent hike request comes after two years of stagnant allowances despite rising market rents.

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Sweety Bhagwat Updated: Friday, January 23, 2026, 11:24 AM IST
Mumbai: MHADA Proposes ₹5,000 Rent Hike For BDD Chawl Residents Amid Redevelopment | File Photo

Mumbai: MHADA Proposes ₹5,000 Rent Hike For BDD Chawl Residents Amid Redevelopment | File Photo

Mumbai: The Maharashtra Housing and Area Development Authority (MHADA) wants to increase the rent paid to the residents of Bombay Development Directorate (BDD) Chawls for alternate accommodation. A proposal has been sent to the state government seeking a hike of Rs5,000 (from Rs25,000 to Rs30,000).

MHADA has demolished the 100-year-old British-era BDD Chawls, and construction of modern residential buildings is underway in Worli, Naigaon NM Joshi Marg. Under this mega redevelopment project, around 15,000 homes are being built. The residents have been given options of either alternate accommodation or rent for accommodation of their own choice.

Many residents opted to move elsewhere by accepting the rental allowance. However, there has been no increase in the rent for the past two years, even though landlords have been raising house rents every year. Chawl residents had therefore appealed for a hike from MHADA. In Worli, the first sets of keys to newly constructed apartments by MHADA have already been handed over.

As more buildings near completion, remaining tenants are eagerly waiting to move into modern, spacious homes that promise a new chapter in their decades-old association with the BDD chawls. The transformation is stark. The new apartments, with a carpet area of 500 sq ft, are a significant upgrade from the single-room tenements of barely 160 sq ft that generations of families shared in the chawls.

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Published on: Friday, January 23, 2026, 11:24 AM IST

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