Maharashtra Plans Separate Law to Regulate Redevelopment Projects

The Maharashtra government is set to introduce a dedicated legal framework for redevelopment projects, recognising a regulatory gap in the state’s real estate landscape. Current provisions under the Real Estate Regulatory Authority (RERA) Act, 2016, do not cover redevelopment, leaving homeowners with limited recourse when developers delay or stall projects. The Maharashtra Housing Policy 2025, approved last month, proposes a RERA-like law to ensure better protection for residents and promote efficiency in redevelopment initiatives.

Under existing rules, MahaRERA has repeatedly declined jurisdiction over redevelopment complaints, directing affected homeowners to other authorities. Officials highlighted that the absence of clear legal safeguards often leaves residents in transit camps or reliant on temporary rent from developers, a situation that can worsen when project delays extend for years. The new policy notes that stalled redevelopment projects not only create financial stress but also impose social and mental burdens on homeowners, necessitating stringent oversight. The 2025 housing policy emphasises targeted measures to revive stalled projects, particularly through cluster redevelopment, which aims to consolidate resources, improve planning efficiency, and reduce execution delays. Officials explained that this model allows multiple redevelopment projects to be handled collectively, ensuring better compliance with timelines and regulations while enhancing overall urban planning outcomes.

A key component of the policy is the promotion of self-redevelopment initiatives. The government has earmarked ₹2,000 crore to support cooperative housing societies willing to undertake redevelopment independently. Additionally, a dedicated cell will be established to assist societies in navigating approvals, legal compliance, and project execution, creating a more structured ecosystem for residential redevelopment. Experts highlight that redevelopment in cities like Mumbai often faces legal and infrastructural hurdles, from delayed approvals to complex tenancy agreements. By introducing a law tailored to redevelopment projects, Maharashtra aims to provide clarity on ownership rights, rental arrangements, and project accountability. Officials stated that the policy framework will ensure residents are not left without recourse when developers fail to meet obligations, ultimately enhancing investor confidence and urban resilience.

The Maharashtra Housing Policy 2025 also addresses the need for greater transparency in redevelopment agreements and proposes mandatory timelines for rent payments, alternative accommodation arrangements, and progress reporting by developers. Officials believe that these reforms will not only protect homeowners but also encourage timely execution of redevelopment projects, fostering more sustainable urban development. With urban areas facing growing demand for housing and limited land availability, redevelopment remains a key strategy to optimise existing space. The government’s policy signals a proactive approach towards formalising and regulating this sector, ensuring that redevelopment projects contribute positively to equitable and sustainable city growth.

Maharashtra Plans Separate Law to Regulate Redevelopment Projects