The Maharashtra government is gearing up to address one of the most pressing challenges in the real estate sector—redevelopment. The recently approved Maharashtra Housing Policy 2025 has proposed a separate RERA-like law to regulate redevelopment projects, a move aimed at protecting homeowners who are often left vulnerable when such projects get delayed or abandoned.
Also Read:- Big Win for Maharashtra’s Housing Societies: Deemed Conveyance Goes Fully Digital with PRATYAY MahaBhumi Portal
Why is a new law needed?
Currently, redevelopment projects do not come under the ambit of the Real Estate (Regulation and Development) Act, 2016 (RERA). As a result, complaints related to these projects are not addressed by MahaRERA, leaving homeowners with limited avenues for justice.
To bridge this regulatory gap, the state cabinet approved the housing policy in May 2025. A Government Resolution (GR) issued on July 23 further pushed the proposal towards implementation.
Also Read:- Maharashtra May Soon Extend Slum Rehab Benefits to First-Floor Chawl Residents: What It Means for You
What is redevelopment in housing?
Redevelopment typically involves demolishing aging buildings—often two to seven storeys high—and replacing them with modern, larger structures. Key aspects include:
- Bigger homes for residents: Existing occupants receive larger, upgraded apartments free of cost.
- Profit for developers: Builders earn by selling additional flats in the open market.
- Revenue for the state: The government earns by selling Floor Space Index (FSI) to developers.
While the model benefits all stakeholders on paper, in reality, many projects face delays, disputes, and financial setbacks, leaving residents stranded in transit homes or dependent on stalled rent payments from developers.
What does the Maharashtra Housing Policy 2025 propose?
The new policy acknowledges the recurring problems in redevelopment and suggests:
- Separate RERA-like law: To ensure strict regulation and accountability.
- Protection for homeowners: Addressing issues like halted projects, delayed possession, and unpaid rents.
- Revival measures: Special focus on reviving stalled projects, especially slum and cluster redevelopments.
- Push for self-redevelopment: The government has allocated ₹2,000 crore and proposed a dedicated support cell for housing societies willing to undertake redevelopment on their own.
The policy emphasizes that without stringent regulation, homeowners face financial, social, and mental distress, especially when projects get indefinitely delayed.
Also Read:- Maharashtra Government Considers 10% Hike in Ready Reckoner Rates: What It Means for the Real Estate Sector
MahaRERA’s current stance on redevelopment projects
MahaRERA, since its inception in May 2017, has resolved around 30,000 complaints from homebuyers. However, it has consistently ruled that redevelopment projects fall outside its jurisdiction.
For example, in December 2022, MahaRERA dismissed a complaint by Mumbai homeowners, stating redevelopment was not covered under RERA. While it allowed residents to approach other authorities, it highlighted the urgent need for a clear legal framework to govern such projects.
Why this move is significant
With thousands of old buildings awaiting redevelopment across Maharashtra—especially in Mumbai—the proposed separate RERA-like law could be a gamechanger. It has the potential to:
- Instill greater trust among homeowners.
- Ensure timely completion of redevelopment projects.
- Provide a dedicated grievance redressal mechanism.
- Encourage self-redevelopment, reducing dependence on private developers.
In summary:
The Maharashtra Housing Policy 2025 aims to safeguard homeowners by introducing a separate RERA-like law for redevelopment projects, addressing long-standing gaps in regulation and protecting residents from delays, disputes, and financial distress.
Also Read:- Maharashtra Government Greenlights Stamp Duty Concessions for Dharavi Redevelopment & Raigad Pen Growth Centre Projects
The Maharashtra government is gearing up to address one of the most pressing challenges in the real estate sector—redevelopment. The recently approved Maharashtra Housing Policy 2025 has proposed a separate RERA-like law to regulate redevelopment projects, a move aimed at protecting homeowners who are often left vulnerable when such projects get delayed or abandoned.
Also Read:- Big Win for Maharashtra’s Housing Societies: Deemed Conveyance Goes Fully Digital with PRATYAY MahaBhumi Portal
Why is a new law needed?
Currently, redevelopment projects do not come under the ambit of the Real Estate (Regulation and Development) Act, 2016 (RERA). As a result, complaints related to these projects are not addressed by MahaRERA, leaving homeowners with limited avenues for justice.
To bridge this regulatory gap, the state cabinet approved the housing policy in May 2025. A Government Resolution (GR) issued on July 23 further pushed the proposal towards implementation.
Also Read:- Maharashtra May Soon Extend Slum Rehab Benefits to First-Floor Chawl Residents: What It Means for You
What is redevelopment in housing?
Redevelopment typically involves demolishing aging buildings—often two to seven storeys high—and replacing them with modern, larger structures. Key aspects include:
- Bigger homes for residents: Existing occupants receive larger, upgraded apartments free of cost.
- Profit for developers: Builders earn by selling additional flats in the open market.
- Revenue for the state: The government earns by selling Floor Space Index (FSI) to developers.
While the model benefits all stakeholders on paper, in reality, many projects face delays, disputes, and financial setbacks, leaving residents stranded in transit homes or dependent on stalled rent payments from developers.
What does the Maharashtra Housing Policy 2025 propose?
The new policy acknowledges the recurring problems in redevelopment and suggests:
- Separate RERA-like law: To ensure strict regulation and accountability.
- Protection for homeowners: Addressing issues like halted projects, delayed possession, and unpaid rents.
- Revival measures: Special focus on reviving stalled projects, especially slum and cluster redevelopments.
- Push for self-redevelopment: The government has allocated ₹2,000 crore and proposed a dedicated support cell for housing societies willing to undertake redevelopment on their own.
The policy emphasizes that without stringent regulation, homeowners face financial, social, and mental distress, especially when projects get indefinitely delayed.
Also Read:- Maharashtra Government Considers 10% Hike in Ready Reckoner Rates: What It Means for the Real Estate Sector
MahaRERA’s current stance on redevelopment projects
MahaRERA, since its inception in May 2017, has resolved around 30,000 complaints from homebuyers. However, it has consistently ruled that redevelopment projects fall outside its jurisdiction.
For example, in December 2022, MahaRERA dismissed a complaint by Mumbai homeowners, stating redevelopment was not covered under RERA. While it allowed residents to approach other authorities, it highlighted the urgent need for a clear legal framework to govern such projects.
Why this move is significant
With thousands of old buildings awaiting redevelopment across Maharashtra—especially in Mumbai—the proposed separate RERA-like law could be a gamechanger. It has the potential to:
- Instill greater trust among homeowners.
- Ensure timely completion of redevelopment projects.
- Provide a dedicated grievance redressal mechanism.
- Encourage self-redevelopment, reducing dependence on private developers.
In summary:
The Maharashtra Housing Policy 2025 aims to safeguard homeowners by introducing a separate RERA-like law for redevelopment projects, addressing long-standing gaps in regulation and protecting residents from delays, disputes, and financial distress.
Also Read:- Maharashtra Government Greenlights Stamp Duty Concessions for Dharavi Redevelopment & Raigad Pen Growth Centre Projects
