Mumbai Homeowners Urge MHADA to Resolve Stalled Majaswadi Redevelopment

A group of homeowners in Majaswari, Jogeshwari, Mumbai, involved in a long-delayed redevelopment project, has written to the Maharashtra Housing and Area Development Authority (MHADA) to address the issue of 22 society members refusing to vacate their homes. This refusal has stalled the redevelopment project, causing significant frustration among the other homeowners.

Hindustan Times Real Estate reported in January 2026 that MHADA lifted its stay and withdrew the stop-work notice on the project. The stay was revoked after the project was taken over by Pune-based Mantra Group through the National Company Law Tribunal (NCLT) route. The group secured funding of ₹340 crore from ASK Property Fund, part of the ASK Asset and Wealth Management Group, which is backed by Blackstone.

The Majaswadi redevelopment project, spread across 9 acres, has been stalled for 17 years and is estimated to have a development potential of over ₹3,000 crore. The project currently involves claims of nearly ₹525 crore from around 240 homebuyers, with total liabilities, including those of two joint venture partners, approaching ₹600 crore, affecting over 300 buyers. Along with the homebuyers in the sale component of the redevelopment project, there were 579 tenants on the land parcel.

MHADA had issued a stop-work notice in June 2022 to the erstwhile developer of the Majaswadi Sarvodayanagar Co-operative Housing Society for failing to complete the project. However, on December 30, 2025, MHADA withdrew the notice, clearing the way for construction to resume. In August 2025, Mantra Group took over the project through the NCLT route. The redevelopment dates back to 2008, when 576 tenants of the Majaswadi Sarvodayanagar Co-operative Housing Society decided to redevelop the colony and appointed a developer to execute the project.

The developer constructed only three towers for 171 of the 576 tenants and also launched two sale towers, selling apartments to 350 homebuyers. To finance the project, the developer raised substantial funds, which amounted to ₹4,326.72 crore by the time the matter reached the NCLT. Following repeated delays and failure to complete the project, homebuyers approached the NCLT as financial creditors and filed an application under Section 7 of the Insolvency and Bankruptcy Code. Last year, the NCLT appointed a resolution professional and invited developers to submit resolution plans. Of the 14 developers that expressed interest, five submitted bids, following which Mantra Properties and Developers Private Limited emerged as the successful resolution applicant and acquired the project.

According to the NCLT order, Mantra Properties submitted a ₹614 crore resolution plan, which includes completing the two sale towers and handing over possession to homebuyers within 18 months. Of the 576 original occupants of the colony, 171 tenants have already been rehabilitated into new homes, 92 tenants continue to reside on the plot with their homes yet to be demolished, while around 300 tenants have been temporarily relocated and are awaiting rehabilitation.

Of the 579 residents, 171 had already been allotted homes by the erstwhile developer. Among the remaining tenants, around 300 had moved out but were not paid rent, while 92 continued to stay on the plot. After Mantra Developers took over, rent was paid to all eligible tenants undergoing rehabilitation. Subsequently, 70 families vacated, but 22 remained, said Sanjay Bane, chairman of Majaswadi Sarvodayanagar Co-operative Housing Society.

This refusal from 22 tenants to vacate the plot has brought the project to a halt. The redevelopment project will take us from 200 sq ft homes to a 750 sq ft apartment. The 22 tenants are demanding three years of rent upfront from the new developer, a bank guarantee, and many more demands, which makes it difficult for the project to move further. We have written to MHADA to pass an order on the hearing taken by us on the complaint, and we are also going to approach Bombay High Court (HC) over vacating the 22 tenants, Bane said.

According to the tenants who have not vacated, the Maharashtra Housing and Area Development Authority (MHADA) held a hearing at which they presented their demands. Our demands have been submitted to MHADA and the developer. We are not against the developer and are willing to vacate, subject to our demands. This includes a bank guarantee, PAA agreement, and market-rate rent for all 22 members. We are also seeking clarity on corpus and outright compensation. We are considering approaching the Bombay High Court and taking further action if required, said Arun Sawant, one of the 22 tenants who are yet to vacate the premises.

An email query has been sent to Mantra Group. The story will be updated if a response is received. MHADA officials could not be reached for comment.