State takes over stalled Byculla redevelopment projects, orders action against builders

A government resolution (GR) was issued on Friday, stating that the state will acquire Taumbawala Building, Deji Dharsi Building, and Zohra Mansion—located on Fourth Peer Khan Street in Nagpada and collectively spread across 1,532.63 sq. m.—to complete their redevelopment through MHADA

MUMBAI: The state government on Friday approved the acquisition of three long-stalled redevelopment projects in Byculla after developers failed to complete construction for years and stopped paying transit rent, leaving tenants in hardship. The state has also directed MHADA to initiate criminal action against the developers involved and blacklist them.

State takes over stalled Byculla redevelopment projects, orders action against builders

A government resolution (GR) was issued on Friday, stating that the state will acquire Taumbawala Building, Deji Dharsi Building, and Zohra Mansion—located on Fourth Peer Khan Street in Nagpada and collectively spread across 1,532.63 sq. m.—to complete their redevelopment through MHADA.

“The developer had completed construction up to 20 floors but failed to rehabilitate tenants even after 10 years. The developer also stopped paying tenants’ transit rent for the last three years, leading to a legal battle. A group of tenants approached the Bombay High Court, which on 1 October 2025 directed the state to take action under Section 91(A) of the MHADA Act, allowing the government to acquire such properties,” the GR stated.

Acting on the court’s directive, the state authorised MHADA to take possession of the land and structures. The takeover will processed only after financial and legal audits confirm the absence of third-party rights, pending loans, or other encumbrances.

MHADA is set to begin work immediately to complete the redevelopment and rehabilitate the displaced tenants. The government has also ordered that the existing developer or owner be blacklisted and booked for non-compliance.