Maharashtra: 6,000 Homeowners Trapped in Legal Limbo Over Redevelopment
With property prices soaring and Mumbai's skyline rapidly transforming, over 6,000 redevelopment cases are stuck in the Bombay High Court, leaving thousands of original homeowners in legal uncertainty.
RedevelopmentLegal UncertaintyBombay High CourtReraMaharashtraReal Estate MumbaiSep 05, 2025
The problem stems from a critical legal gap. Once a building is torn down, original residents, many senior citizens and middle-class families, lose protection under the Real Estate (Regulation and Development) Act (RERA), which governs developers and homebuyers. Since the rehabilitation component of redevelopment lies outside RERA, residents must rely on costly, slow civil suits or arbitration that offer little relief.
Housing activists and legal experts say the law simply hasn’t kept up with what’s happening on the ground. “RERA was a landmark when it came in. But it was designed with new flat buyers in mind. It didn’t consider people being shifted out of their homes during redevelopment. That has to change — urgently,” said CA Ramesh Prabhu, chairman, Maharashtra Societies Welfare Association (MahaSEWA).
Maharashtra has a strong track record in housing reform. It introduced the Maharashtra Ownership Flats Act (MOFA), which became a model for other states, and even passed its own housing regulation law in 2012, before RERA came into effect. Now, experts say, it’s time for the state to take the lead again, this time by setting up a dedicated think tank to create a new framework for redevelopment and rehabilitation.
“There’s no shortage of redevelopment projects happening across Mumbai, Pune, Nagpur, and Nashik. But if the government doesn’t act now, more and more people will end up in court or worse, in limbo without a roof over their head,” said Prabhu.
The legal gap begins with the definition of ‘allottee’ under the RERA Act. Currently, only those who have purchased homes by paying money for a flat are officially considered allottees. But in redevelopment and Slum Rehabilitation Authority (SRA) projects, residents receive new homes in exchange for vacating old ones. No money is paid, yet the stakes remain equally high.
“Just because someone didn’t pay for their flat doesn’t mean they shouldn’t be protected,” said Advocate Godfrey Pimenta, who often handles MahaRERA cases. “We need to amend the law to include allottees in redevelopment and SRA schemes. Otherwise, thousands remain vulnerable with zero accountability from developers. Bringing such projects under RERA will pressure developers to meet deadlines and give residents legal recourse,” said Pimenta.
For now, residents caught in redevelopment delays often have just one option: go to the court. But with thousands of such cases already clogging the system, and the average litigation stretching over years, it’s hardly a practical solution. How can the average middle-class person afford a 5–7 year legal fight? asked Prabhu.
Advocate Shreeprasad Parab, expert director, Maharashtra State Housing Federation, said, “Maharashtra has over 1.25 lakh Co-operative Housing Societies and two lakh apartment complexes, with nearly 30 per cent undergoing or awaiting redevelopment. This transformative shift is marred by legal delays, stalled projects, and over 6000 cases pending in the Bombay High Court, with many more in civil courts. While RERA protects individual flat purchasers, housing societies as collective entities remain unprotected, lacking timely redressal. There is an urgent need for a dedicated ‘Redevelopment Adjudication Authority’ with summary procedures, strict timelines, and enforcement powers. A statutory ‘Model Redevelopment Agreement’ is equally crucial to prevent one-sided contracts. The proposed Single Window System under Maharashtra’s Housing Policy 2025 promises faster approvals and self-redevelopment. Redevelopment disputes undermine housing as a constitutional right under Article 21.”
For every flashy new tower that goes up in Mumbai, there’s an old family waiting to return home. Until the law steps in to protect those original flat owners, redevelopment will continue to be a gamble, with too many losing out. “Progress is great, but not if it comes at the cost of people’s homes, dignity, and peace of mind,” said Prabhu.
Frequently Asked Questions
What is the main issue facing original homeowners in Mumbai's redevelopment projects?
The main issue is that once a building is demolished, original residents lose protection under the Real Estate (Regulation and Development) Act (RERA), leading to legal uncertainty and delays.
Why are redevelopment cases clogging the Bombay High Court?
Redevelopment cases are clogging the Bombay High Court because the rehabilitation component of redevelopment is not covered under RERA, forcing residents to rely on costly and slow civil suits or arbitration.
What is the proposed solution to protect redevelopment residents?
The proposed solution is to amend the RERA Act to include allottees in redevelopment and SRA schemes, and to set up a dedicated ‘Redevelopment Adjudication Authority’ with summary procedures and strict timelines.
How many redevelopment cases are currently pending in the Bombay High Court?
Currently, over 6,000 redevelopment-related cases are pending in the Bombay High Court.
What is the impact of these legal delays on the residents?
The legal delays have a significant impact on residents, often leaving them in a state of limbo without a roof over their head, and forcing them into lengthy and costly legal battles.
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