MHADA Takes Over South Mumbai's Stalled Parvati Building Redevelopment Project
After nearly 15 years and two failed developer attempts, the Maharashtra Housing and Area Development Authority (MHADA) has decided to take over a stalled redevelopment project in South Mumbai, aiming to expedite the completion and address the financial hardships faced by tenants.
MhadaSouth MumbaiRedevelopmentParvati BuildingSupreme CourtReal Estate MaharashtraMay 20, 2025
The redevelopment of the Parvati Building, which began in 2013, has faced prolonged delays. The appointed developer, tasked with providing temporary accommodation rent to tenants, allegedly defaulted on payments, leaving many residents financially strained. In April, the Supreme Court directed MHADA to resolve these issues and expedite the project.
In the affidavit, it is stated that the MHADA will initiate the process under Section 91-A of the Maharashtra Housing and Area Development (Amendment) Act, 2020 so that MHADA can itself develop the property, reads the SC order dated May 13, 2025. The Supreme Court directed MHADA to initiate the redevelopment process and, in the interim, provide transit accommodation to eligible tenants.
If the Transit Accommodation is not accepted by the eligible persons on the ground that it is far away from the property, the rent at the current rate shall be paid by the eighth respondent to such persons, the SC order reads. The SC has listed the matter on August 18, 2025, for MHADA to complete the further process.
Nilesh Gala, the advocate representing the tenants, told HT.com, The project has been stalled since 2021, despite two developers being appointed. Consequently, MHADA has informed the Supreme Court of its decision to take over. The amendment to the MHADA Act was intended for such long-stalled projects, and the SC has directed and accepted MHADA's statement.
A set of queries have been emailed to MHADA.
The redevelopment of the Parvati Building, initiated in 2013, has encountered prolonged delays. The developer, responsible for providing temporary accommodation rent to tenants, failed to make payments, leaving many residents in financial hardship. The Supreme Court's directive seeks to address these issues and expedite a resolution. Tenants allege that the previous developer defaulted on rent payments totalling over ₹12 crore for their temporary accommodation.
Najaribai Jain, a tenant residing in a 543-square-foot unit in the Parvati Building in Bhuleshwar, South Mumbai, is among the affected residents. The building, which housed around 100 tenants, was earmarked for redevelopment. However, despite MHADA’s approval of a new developer, tenants are still waiting to take possession of their homes more than 12 years after the project began.
In October 2024, Jain filed a special leave petition in the Supreme Court, prompting the SC to summon MHADA’s chief officer to appear on April 7, 2025. Following the hearing, the SC, in its May 13 order, accepted MHADA's proposal to take over the stalled project.
Frequently Asked Questions
Why has MHADA taken over the Parvati Building redevelopment project?
MHADA has taken over the project due to prolonged delays and the developer's default on temporary accommodation rent payments, leaving many residents financially strained.
What is the current status of the Parvati Building redevelopment project?
The project, which began in 2013, remains incomplete. MHADA has been directed by the Supreme Court to take over and expedite the redevelopment process.
How will MHADA address the financial hardships faced by tenants?
MHADA will provide transit accommodation to eligible tenants. If the transit accommodation is not accepted, the rent at the current rate will be paid to the tenants.
What role did the Supreme Court play in this decision?
The Supreme Court directed MHADA to resolve the issues and expedite the project. The SC accepted MHADA's proposal to take over the stalled project and listed the matter for further process.
What is the next step in the redevelopment process?
MHADA will initiate the process under Section 91-A of the Maharashtra Housing and Area Development (Amendment) Act, 2020, to develop the property and complete the project.
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