Major Relief for Mumbai’s Cessed Building Occupants as MHADA Slashes Extra Area Charges

Relief for Old Building Residents

In a significant move aimed at easing financial pressure on occupants of old cessed buildings, the Maharashtra Housing and Area Development Authority (MHADA) announced that eligible beneficiaries listed in its master list would now need to pay only 100% of the ready reckoner rate (RRR) for any additional area allotted to them, instead of the earlier 110%. Officials clarified that this new concession would also apply retrospectively to those who were declared eligible in MHADA's December 2023 housing lottery.

Policy Framework Underway

MHADA’s vice president and CEO, Sanjeev Jaiswal, reportedly directed the housing authority to finalise a new policy framework within a week to implement this updated concession.

Understanding Cessed Buildings

Cessed buildings refer to old, rent-controlled structures mainly located in south and central Mumbai, built before 1969. These buildings were categorized into three groups based on their construction periods—before 1940, between 1940 and 1950, and between 1951 and 1969. A cess or tax collected by MHADA funds their repair and maintenance. Many of these structures, now in dilapidated condition, are eligible for redevelopment under various urban renewal schemes.

Expanding Beneficiary Coverage

It was shared that tenants from stalled redevelopment projects or from buildings acquired by MHADA would also be considered for inclusion in the updated master list. Jaiswal highlighted that in many old and dangerous buildings, often only upper floors were demolished, leaving ground-floor tenants in uncertainty. He stated that these ground-floor tenants would now be recognized as eligible beneficiaries and would receive due compensation.

Special Preference and Biometric Survey

MHADA is also conducting a biometric survey of residents in transit camps, categorizing them into A, B, and C groups according to a government resolution from September 2019. It was indicated that residents falling under Category A—whose original buildings could not be reconstructed—would be given preference for inclusion in the master list.

Additionally, Jaiswal directed that residents from cessed buildings whose redevelopment had stalled should be offered the option to join the master list, including those living in properties already acquired by MHADA.

Earlier Reductions in Charges

Prior to this update, MHADA had reduced these charges from 125% to 110% of the RRR in October, aiming to make housing more affordable for eligible residents. The step was reportedly taken to accelerate the rehabilitation process and ease financial stress for beneficiaries who often received larger flats than the typical 300 sq ft unit.

Disclaimer: The information provided in this article is based on publicly available sources and official announcements at the time of publication. While we strive for accuracy, readers are advised to verify details independently before making any decisions. We do not take responsibility for any errors, omissions, or changes in policies or regulations after publication.