Maharashtra: Eknath Shinde Introduces New Policy to Protect Residents in Redevelopment Projects
Maharashtra's Deputy Chief Minister Eknath Shinde has announced a new policy to protect residents in redevelopment projects, requiring developers to deposit three years' rent upfront.
MaharashtraRedevelopmentEknath ShindeHousing PolicyMhadaReal Estate MaharashtraOct 14, 2025
Shinde highlighted the issues faced by residents in redevelopment projects, stating, “Some builders take on redevelopment projects, vacate residents from flats, fail to pay rent or delay construction, sometimes even trading rights with other developers, which leads to stalled projects and inconvenience for residents.” To address these concerns, the new policy mandates that builders must deposit three years' rent upfront. Additionally, the project execution capability of developers will be assessed simultaneously before approval.
Shinde emphasized the state's commitment to reviving stalled redevelopment projects. “We are aligning with cash-rich government agencies that have a reputation for completing projects on time. Through combined investment with private developers, we are expecting to raise Rs 50 lakh crore over the next five years and construct 35 lakh homes in the state,” he added. Shinde, who also heads the housing department, noted that since taking over, Mhada has started working on a pioneering housing policy for senior citizens, possibly making Maharashtra the first state in the country to prioritize this segment.
In addition to the senior citizen housing policy, there are plans to develop supply in the affordable housing segment. This initiative aims to benefit sections such as working women and mill workers. Furthermore, rental homes will be made available for migrant workers, as open-market rates are often unaffordable for this group.
The new policy is expected to bring more transparency and accountability to the redevelopment process, ensuring that residents are not left in the lurch. Shinde's announcement was made during a lottery function for over 5,000 Mhada flats from the Konkan region in Thane, highlighting the state's ongoing efforts to improve housing conditions for its residents.
Frequently Asked Questions
What is the new policy introduced by Eknath Shinde?
The new policy requires developers to deposit three years' rent upfront before taking up any redevelopment work in Maharashtra.
Why is this policy being introduced?
This policy aims to prevent redevelopment projects from stalling midway and protect residents from displacement without compensation.
How will the state assess developers?
The state will assess the project execution capability of developers simultaneously with the rent deposit requirement before approving their projects.
What are the state's plans for affordable housing?
The state plans to develop affordable housing for sections such as working women, mill workers, and to provide rental homes for migrant workers.
What is the expected investment and number of homes to be constructed?
The state expects to raise Rs 50 lakh crore over the next five years and construct 35 lakh homes in the state.
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