Maharashtra Unveils Major Housing Reforms: Pagdi Redevelopment Framework, Fast-Track Courts for 28,000 Disputes, and SGNP Tribal Rehabilitation Policy

In a series of significant policy announcements made in the Maharashtra Legislative Assembly, Deputy Chief Minister Eknath Shinde has reportedly outlined a comprehensive strategy to tackle Mumbai's longstanding housing challenges. The announcements addressed critical issues including the redevelopment of pagdi system buildings, unresolved tenant-landlord disputes, and the rehabilitation of communities residing within Sanjay Gandhi National Park (SGNP).

New Framework for Pagdi System Redevelopment

The government has proposed a new framework aimed at unlocking redevelopment potential across Mumbai's island city, where the pagdi system has historically created legal and social complexities. According to the announcement, the proposed framework includes a three-tier FSI model for redevelopment projects. Industry observers note that Mumbai's redevelopment drive continues to present opportunities amid ongoing urban challenges.

The government has indicated that Transfer of Development Rights (TDR) would be granted in cases where full FSI utilisation is not possible due to height or zoning restrictions. Market analysts familiar with Mumbai's TDR policy implications suggest this could significantly impact real estate growth patterns in the city.

Key Provisions of the Proposed Framework

The Deputy Chief Minister reportedly stated that existing redevelopment schemes would remain intact, with the new framework offering an alternative route for buildings not covered under current policies. A notable aspect of the proposal is the provision for cost-free reconstruction for economically weaker sections (EWS) and low-income groups (LIG), which aims to ensure equitable and inclusive redevelopment. This aligns with the state's broader vision under the Majhe Ghar Majha Adhikar housing policy to build lakhs of affordable homes by 2030.

Balancing Rights of Tenants and Landlords

The Deputy Chief Minister reportedly emphasised the need to protect the interests of both parties involved in pagdi arrangements. He was quoted as saying that while tenants enjoy protection under the Rent Control Act, landlords must also receive fair value for their ownership. Understanding legal protections available to tenants in India remains crucial in such complex arrangements.

Shinde reportedly acknowledged that many disputes have stalled redevelopment projects and stated that the new policy aims to ensure fair compensation and safeguards for all stakeholders. Experts point out that rental agreements in India are often perceived as biased, making balanced policy interventions essential.

Proposed Fast-Track Courts for Dispute Resolution

With an estimated 28,000 legal disputes between pagdi tenants and landlords reportedly pending in small-cause courts, the government has proposed establishing dedicated fast-track courts. This initiative is subject to approval from the Bombay High Court. Those seeking to understand the legal process for property disputes may find these developments particularly relevant.

Objectives of the Fast-Track Court Proposal

According to government sources, the fast-track courts aim to clear the backlog of disputes within three years. The initiative focuses on expediting stalled redevelopment projects and reducing the litigation burden on existing courts. Additional judicial infrastructure and legal support mechanisms are reportedly being considered to process claims more efficiently. Housing industry observers have noted that understanding key challenges in Mumbai's real estate redevelopment is essential for stakeholders navigating this landscape.

Housing Activists Express Concerns

While the announcements have been welcomed by many, some housing activists have raised concerns. Urban planner Chandrashekhar Prabhu reportedly cautioned that cluster-based redevelopment approaches might force pagdi tenants out of their localities. He warned that such displacement could effectively remove legal residents from their established neighbourhoods and open prime real estate to private developers.

Prabhu was quoted as emphasising that pagdi tenants should not be treated as slum dwellers since they have paid for their homes. He urged that the policy must recognise this distinction. Stakeholders interested in Mumbai's slum rehabilitation effectiveness continue to monitor such policy developments closely.

Draft Rehabilitation Policy for SGNP Communities

Addressing another longstanding issue, the Deputy Chief Minister announced a draft rehabilitation policy for approximately 25,000 slum dwellers and tribal families residing within Sanjay Gandhi National Park, one of Asia's few urban forests. The policy reportedly focuses on slums located in Non-Development Zones (NDZs) within SGNP boundaries.

Rehabilitation Parameters and Conservation Goals

According to the policy framework, slum dwellers would be rehabilitated within a 5-kilometre radius of the park. Tribal communities are proposed to be relocated within the same area to maintain social and cultural continuity. The state has reportedly approved a modification under Section 37(1A) of the MRTP Act, with an official notification expected soon.

The Deputy Chief Minister reportedly stressed the dual objectives of restoring valuable forest land for environmental conservation while ensuring humane rehabilitation of vulnerable communities living in precarious conditions. This approach reflects the state's commitment as documented in Maharashtra's game-changing housing policy initiatives.

Strategic Implications for Mumbai's Housing Landscape

Together, these policy announcements reportedly form a multi-pronged strategy to address Mumbai's chronic urban housing challenges. The measures aim to unlock redevelopment potential in the island city while reducing legal bottlenecks and promoting faster project execution. Similar large-scale initiatives like the MHADA redevelopment of 13,000 cessed buildings in South Mumbai demonstrate the scale of transformation underway.

The policies seek to protect low-income residents while ensuring fair landlord compensation and balance development with conservation in ecologically sensitive areas. Market watchers suggest that Mumbai's redevelopment boom is transforming housing supply amid surging demand, though risks remain.

Industry experts suggest that if implemented effectively, these measures could reshape the city's housing narrative and pave the way for more sustainable, equitable, and legally sound urban development. Those interested in understanding SRA flats in Mumbai may find these policy developments particularly significant for future investments.

Disclaimer: This news article is intended for informational purposes only and should not be construed as legal, financial, or investment advice. Readers are advised to consult qualified professionals before making any decisions related to real estate transactions or investments. The information presented is based on publicly available sources and government announcements, and Ghar.tv does not guarantee its accuracy or completeness. Property investments carry inherent risks, and past policy announcements may be subject to modifications during implementation.