Mumbai: Elphinstone Residents Fear Livelihood Loss Despite Better Housing

Published: February 24, 2026 | Category: Real Estate Mumbai
Mumbai: Elphinstone Residents Fear Livelihood Loss Despite Better Housing

Residents facing displacement from the Elphinstone redevelopment zone in Mumbai have alleged financial loss and unfair rehabilitation terms. However, Additional Collector Shivaji Davbhat has defended the process, stating that the flats being offered are significantly more valuable than the properties surrendered and that authorities are working to ensure no beneficiary is treated unfairly.

Shops vs Flats Value Dispute

Residents > Shops taken, homes given > Loss of income feared

Administration > Avg shop size: 135 sq ft > Shop value: about Rs 26 lakh > Flat value: Rs 70 lakh-Rs 80 lakh

'The houses allotted are significantly higher in market value than the shops surrendered,' said Davbhat. 'Yes, they will have to look for space to continue their business, but residents were informed earlier that only residential units would be allotted.' He added that beneficiaries are entitled to 300 sq ft, but Elphinstone residents are being promised 400 sq ft. 'If the house is smaller, we are paying the difference.'

Project Snapshot > 119 total units in Haji Noorani and Lakshmi Niwas to be demolished > 83 families declared eligible for permanent housing > 78 MHADA flats secured for rehabilitation > 5 families opted for cash compensation

Rs 26L Shop value

Rs 70L-Rs 80L Flat value

Demand for Nearby Homes

Residents: Willing to pay extra for closer flats Administration: No objection, but supply exhausted

'Some who agreed earlier secured nearby units. At present, there are no MHADA homes available there,' Davbhat said.

Location Concerns

Residents > Some flats beyond promised 2.5 km radius > Concerns about neighbourhoods

Administration > Full ownership rights > No restriction on resale

'Each flat is worth over Rs 70 lakh. Beneficiaries can sell and buy where they prefer,' Davbhat said. He added that authorities cannot regulate social perceptions but have ensured financial value.

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Frequently Asked Questions

1. What is the Elphinstone redevelopment project about?
The Elphinstone redevelopment project in Mumbai involves the demolition of 119 units in Haji Noorani and Lakshmi Niwas to make way for new infrastructure. 83 families have been declared eligible for permanent housing, and 78 MHADA flats have been secured for their rehabilitation.
2. Why are residents concerned about the relocation?
Residents are concerned about losing their livelihoods because they are being given residential flats instead of commercial shops, which they fear will lead to a loss of income.
3. How much are the flats and shops worth?
The average shop size is 135 s
4. ft and is valued at about Rs 26 lakh. The flats being offered are worth between Rs 70 lakh and Rs 80 lakh.
5. Can residents choose to stay in the same area?
While some residents are willing to pay extra for closer flats, the supply of MHADA homes in the area is currently exhausted. Beneficiaries have the option to sell their new flats and buy in a preferred location.
6. What are the benefits of the new flats?
The new flats come with full ownership rights and no restrictions on resale. They are also significantly larger, with residents being promised 400 s
7. ft instead of the standard 300 s
8. ft.