Residents of buildings in Dharavi to get larger homes on payment for extra space

Maharashtra government plans to provide larger homes in Dharavi Redevelopment Project, increasing sizes to 500-753 sq ft, with free flats for eligible residents.

MUMBAI: Eligible residents of the Dharavi Redevelopment Project (DRP) will soon receive larger homes under a revised policy of the Maharashtra government. The government has decided to increase the size of tenements allotted to beneficiaries to a minimum of 500 square feet for slum tenements and a maximum of 753 square feet for flats in buildings. This is much more than the current norm of 300 square feet under the existing scheme.

Residents of buildings in Dharavi to get larger homes on payment for extra space

Like the slum tenements, the flats too will be provided free of cost. However, unlike slum dwellers, residents of buildings can opt for additional area equivalent to the area of their homes on payment of the construction cost.

A draft notification on this was issued by the urban development department (UDD) on March 12, seeking suggestions and objections from the public within a month. “Through the draft notification, the urban development department has sought to modify sub-clause (4) of 33(9)(A) of the Development Control and Promotion Regulations (DCPR), which will allow them to implement the changes,” said a UDD official.

“Each eligible occupant shall be rehabilitated and given the carpet area occupied by him for residential purposes in the old building subject to the minimum fixed carpet area of 370 square feet (instead of 300 square feet) and maximum area equivalent to the area occupied in the old building. The carpet area up to 753.4 square feet shall be part of rehabilitation residential component (RRC) and shall be provided free of cost,” (sic) states the draft notification.

“However, area above 753.4 square feet will be at construction cost to be determined by Dharavi Redevelopment Project (SRA) and the said cost to be paid by the respective occupant to the developer. Such surplus residential renewal area shall not qualify for calculating incentive rehabilitation sale component (RSC),” (sic) it said further.

Of the 500 square feet, 370 square feet will be the carpet area and the rest will be part of the fungible area used in the building.

Fungible area means the extra area added by the developer over and above the carpet area. This is usually allowed by the authorities, and includes things like balconies, flowerbeds, niches, or even a small increase in internal space. It is not always fully usable like carpet area but still counts toward the total size of the tenement. In the case of Dharavi, the size of the fungible area will be 130 sq ft.

The decision to grant extra space was taken following the directives issued by chief minister Devendra Fadnavis in a war room in relation to the DRP meeting held on May 28, 2025. “The chief minister directed the DRP to submit a proposal to the government, seeking approval for a minimum carpet area of 500 square feet, along with detailed justification,” another official said.

For slum tenements, the maximum size of the tenement will be 350 square feet, for which a separate notification is expected to be issued, officials said.

The redevelopment of Dharavi is being carried out by a special purpose vehicle set up through a joint venture between the Maharashtra government’s Slum Rehabilitation Authority and the Adani Group’s Dharavi Redevelopment Project Private Limited, now known as Navbharat Mega Developers Private Limited. It has been marred by controversies over the number of land parcels allotted by the state government for rehabilitation of tenants.

According to officials, about 1,25,000 to 150,000 new homes will be constructed to rehabilitate about one million residents of Dharavi. Residents deemed ineligible for rehabilitation within Dharavi will be relocated to rental housing complexes outside the area under a hire-purchase arrangement.

To rehabilitate ineligible residents of Dharavi, the state has identified and allocated about 540 acres of land within the Mumbai Metropolitan Region. This includes land at Kurla, salt pan lands at Kanjurmarg, Bhandup and Mulund, and portions at the Deonar dumping ground.