Maharashtra Housing Policy 2025: A Separate RERA-like Law for Real Estate Redevelopment
The Maharashtra government's new housing policy proposes a separate law for redevelopment projects, as such projects are not covered under the Real Estate Regulatory Authority Act, 2016. This move aims to address the distress faced by homeowners in stalled redevelopment projects.
MaharashtraReal EstateRedevelopmentReraHousing PolicyReal Estate MaharashtraAug 22, 2025
The Maharashtra government's cabinet approved the new Maharashtra Housing Policy 2025 in May 2025. However, on July 23, the Maharashtra Housing Department issued a Government Resolution (GR) on the policy, which is considered to be one step further towards its implementation in the state.
What is redevelopment?
In Maharashtra, several old buildings, especially those comprising two to seven storeys, are currently being redeveloped. Redevelopment of housing projects involves demolishing the old structure and replacing it with a modern, bigger building, subject to various norms. Residents of the old building get larger apartments in the newer building for free, as the builder sells a certain number of apartments in the new building for a profit in the open market. The government also earns revenue by selling the floor space index (FSI) to the builder.
What does the new housing policy propose regarding a RERA-like law for redevelopment projects?
The approved housing policy states, 'The RERA Act does not apply to redeveloped properties. A separate law is necessary to regulate such redevelopment projects and properties.' The policy notes that several redevelopment projects have stalled in the past, leaving homeowners in distress as developers stopped paying them rent.
Justifying the stringent regulation for redevelopment projects in Maharashtra, the housing policy reads, 'Due to several reasons, redevelopment projects either do not commence or get delayed, which results in financial, social, and mental distress for the flat owners. Most flat owners are forced to stay in transit camps or take monthly rent from the developer to arrange for accommodation. Many times, the developer stops providing residential rent. Redevelopment projects get delayed for various reasons.'
The Maharashtra government’s 2025 housing policy has also drafted targeted measures to revive stalled real estate and slum redevelopment projects, particularly using a cluster redevelopment model for greater efficiency and scale. The Maharashtra housing policy 2025 has strongly pushed self-redevelopment in its newly approved housing policy. To support the initiative, the state has allocated ₹2,000 crore and proposed the formation of a dedicated cell to assist cooperative housing societies.
MahaRERA's stand on regulating redevelopment projects
The MahaRERA, which is the regulator of real estate projects in Maharashtra, has shot down several complaints by homebuyers who have approached it for relief against the developer in a redevelopment project. For example, in December 2022, MahaRERA, in reacting to a complaint, ruled that the redevelopment component of a real estate project is not covered under the RERA Act's purview. The MahaRERA said that it is of the view that the redevelopment component does not fall within the purview of the RERA. Stating this, it had disposed of a complaint of homeowners of a redevelopment project in Mumbai, citing a lack of jurisdiction. The authority had given the homeowners the liberty to approach other competent authorities for their complaint. The MahaRERA has been established in Maharashtra since May 2017, and it has handled around 30,000 complaints against homebuyers since its inception.
Frequently Asked Questions
What is the Maharashtra Housing Policy 2025?
The Maharashtra Housing Policy 2025 is a new policy approved by the Maharashtra government in May 2025. It proposes a separate RERA-like law for redevelopment projects and includes measures to revive stalled real estate and slum redevelopment projects.
Why is a separate RERA-like law needed for redevelopment projects?
A separate RERA-like law is needed for redevelopment projects because they are not covered under the Real Estate Regulatory Authority Act, 2016. This law aims to regulate such projects and address complaints from homeowners.
What are the benefits of redevelopment for residents?
In redevelopment projects, residents of old buildings get larger apartments in the newer building for free. The builder sells a certain number of apartments in the new building for a profit in the open market, and the government earns revenue by selling the floor space index (FSI) to the builder.
What measures has the Maharashtra government taken to support self-redevelopment?
The Maharashtra government has allocated ₹2,000 crore and proposed the formation of a dedicated cell to assist cooperative housing societies in self-redevelopment initiatives.
Why has MahaRERA rejected complaints related to redevelopment projects?
MahaRERA has rejected complaints related to redevelopment projects because it views the redevelopment component as not falling within the purview of the RERA Act. Homeowners are advised to approach other competent authorities for their complaints.
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