Maharashtra Govt Increases Mumbai Rent Support to ₹30,000 for Dangerous Cessed Building Tenants

The Maharashtra government has announced a significant increase in rent allowance for tenants displaced from dangerous cessed buildings, raising the support from ₹20,000 to ₹30,000 per month. This policy shift comes as the monsoon season brings renewed urgency to address the safety crisis in Mumbai's aging building stock.

Understanding the Crisis of Cessed Buildings

Officials explained that cessed buildings represent old, rent-controlled properties where tenants pay a nominal cess to MHADA for repairs and redevelopment purposes. Many of these structures were constructed before India's independence and continue to house thousands of families despite their deteriorating condition.

A MHADA survey conducted in 2024 identified 96 buildings in South and Central Mumbai as "extremely dangerous" or falling under the C-1 category. These structures face high collapse risks, particularly during monsoon periods when heavy rains can further weaken their already fragile foundations.

Government Justifies ₹30,000 Monthly Increase

MHADA initially provided ₹20,000 per month to tenants displaced from dangerous buildings, but authorities recognized this amount as insufficient given Mumbai's escalating rental market. With only 786 available transit tenements for over 2,400 affected tenants, the housing shortage became apparent.

The enhanced rent support of ₹30,000 per month aims to provide realistic housing alternatives in Mumbai's expensive rental market while encouraging faster evacuation of unsafe structures. This measure ensures that tenants won't be left homeless as demolition and redevelopment processes begin.

Transit Housing Shortage Challenges

MHADA currently manages over 20,000 transit tenements, though only a small portion remains unoccupied and available for immediate relocation. To address this gap, the government plans to lease 400 additional tenements ranging from 180-250 sq. ft. from private agencies for up to three years.

Tenants now have the option to choose rental reimbursement instead of moving into cramped transit quarters. MHADA has issued eviction notices to all 96 flagged buildings, urging immediate tenant relocation for safety reasons.

Financial Responsibility and Payment Structure

While MHADA handles initial disbursements, developers or housing societies bear ultimate responsibility for reimbursing this rent once redevelopment begins. This arrangement ensures the financial burden doesn't fall on the state while holding real estate stakeholders accountable for project delays.

Eligibility Requirements for Support

Tenants must meet specific criteria to receive the ₹30,000 support:

• Vacate a C-1 building declared unsafe by MHADA
• Not be accommodated in MHADA transit housing
• Submit necessary documentation including tenancy proof and bank details

Payments are processed via direct bank transfer to ensure transparency and timely support delivery.

Monsoon Urgency and Safety Concerns

The monsoon season has already begun, making this initiative's urgency undeniable. Mumbai has witnessed deadly building collapses in previous years, often due to heavy rains weakening fragile structures. This policy shift represents both a life-saving measure and crucial housing reform.

The administration's response reflects an evolving approach to an urban infrastructure crisis that has developed over decades. The move demonstrates recognition of the challenges facing families trapped in aging and dangerous buildings.

Enforcement Measures for Non-Compliance

If tenants ignore eviction notices, the Executive Engineer may demolish structures under the MHADA Act. MHADA may also initiate redevelopment directly if private developers delay action, ensuring that safety isn't compromised due to procedural roadblocks.

Policy Impact on Urban Renewal

Mumbai's decision to raise rent support for displaced tenants represents a long-overdue acknowledgment of challenges facing families in aging buildings. While the ₹30,000 assistance doesn't immediately fix redevelopment delays or housing shortages, it provides a vital lifeline for those living in precarious conditions.

This measure establishes a new precedent where safety takes priority, and interim housing support must reflect the city's actual rental realities. The policy connects to broader affordable housing initiatives in Maharashtra and demonstrates government commitment to addressing urban housing challenges.

The increased support also aligns with recent trends in Mumbai's property market growth, acknowledging the reality of rising rental costs in India's financial capital.