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Home / Mumbai News / State to table bill to change Mhada Act to ease redevelopment

State to table bill to change Mhada Act to ease redevelopment

mumbai Updated: Aug 13, 2020 00:56 IST

State cabinet on Wednesday decided to make changes in the Maharashtra Housing and Area Development Authority (Mhada) Act, 1976 to pave way for the redevelopment of the 14,227 cessed buildings in the island city. The amendment will empower the state authorities to forcibly acquire the cessed buildings for redevelopment if the owners and societies fail to redevelop them within a year of notification. The decision has been taken in the wake of collapses of cessed buildings during monsoon.

The bill for the amendment is expected to be tabled in the monsoon session next month.

The state has also made a provision of paying transit rent to the tenants vacating the dilapidated buildings. Redevelopments of many buildings have been stalled owing to the disputes and litigations while some are stuck due to lack of agreement between tenants and landowners.

“Cessed buildings have been divided into three categories — those constructed prior to 1940 in A, constructed between 1940 and 1950 in B, and constructed before 1969 in C. Most of these buildings are in dilapidated conditions and need urgent redevelopment. The amendment empowers Mhada to acquire buildings by giving six months to the landowners and six more months to the society for the redevelopment. If they fail to do so, Mhada will take over the redevelopment and complete it within three years for the old tenants. Mhada can also tie up with private builders for the same,” an official from the housing department said.

According to the amendment proposed, landlords will be compensated with 25% of the land cost as per the ready reckoner rate or they can opt for 15% housing stock from the saleable component in the redeveloped buildings.

“In most of the cases, landlords were not giving no objection certificates for the redevelopment, leaving the tenants to live in dilapidated buildings. A fourth of the population of the island city live in cessed buildings which are in dire need of the redevelopment,” said housing minister Jitendra Awhad.

Fadnavis government had, in August 2019, taken the decision of issuing an ordinance in this respect but could not go ahead with it because of the change in the government. It had also announced cluster redevelopment of cessed and non-cessed dilapidated buildings in the island city. The decision taken on Wednesday has no provision for cluster redevelopment as Mhada is still preparing records of non-cessed buildings in the city.

State to give compensation to kin of dead Maratha quota protesters

State cabinet on Wednesday decided to give ex-gratia of ₹10 lakh to the families of the youths who lost lives during the Maratha reservation protests in August 2016. One eligible member of the family will also get a job in Maharashtra State Road Transport Corporation. Urban development minister Eknath Shinde said the government decided to fulfil the announcement made by the previous government.

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