Mumbai Housing Relief: New Policies Target Pagdi Buildings and City-Wide Redevelopment
Mumbai’s long-standing housing challenges may be approaching a critical inflection point. The Maharashtra government has announced a set of regulatory and redevelopment measures aimed at unlocking stalled housing stock, accelerating slum rehabilitation, and modernizing legacy rental structures across India’s most densely populated city. The policy push, unveiled in the state legislature, is expected to impact lakhs of residents and reshape several underdeveloped urban pockets.
At the center of the announcements is an extension of the Occupancy Certificate (OC) amnesty scheme, designed to regularize nearly 20,000 buildings that remain outside formal compliance despite being occupied for years. Urban planners say the move could ease transactional bottlenecks for homebuyers and residents, many of whom have been unable to sell, mortgage, or legally upgrade their homes due to missing approvals. The extension also signals an attempt to balance regulatory enforcement with pragmatic urban management in a city facing acute land and housing scarcity.
Equally significant is the introduction of a new regulatory framework to redevelop Mumbai’s ‘Pagdi’ buildings, a traditional tenancy system that has long resisted redevelopment due to fragmented ownership and legal complexity. Industry experts view this as a long-awaited intervention that could unlock prime inner-city land while protecting tenant rights, provided safeguards are implemented transparently. The government has also announced a large-scale slum redevelopment strategy, allowing projects to be taken up collectively on contiguous land parcels of 50 acres or more, irrespective of whether the land is privately or publicly owned. In the first phase, 17 locations across Mumbai have been identified, including areas in eastern suburbs, western suburbs, and the island city. Officials say this cluster-based approach is intended to improve project viability, infrastructure integration, and long-term liveability.
A senior urban development official noted that joint ventures with agencies such as the metropolitan development authority, housing boards, and civic bodies are expected to ensure financial discipline and coordinated execution. “The aim is to move away from piecemeal redevelopment towards neighbourhood-scale planning that can support transport, social infrastructure, and open spaces,” the official said. Further relief has been extended through the Slum Rehabilitation Authority amnesty scheme, now valid until the end of 2026. The extension is expected to resolve technical disputes related to ownership transfers and stalled approvals that have slowed rehabilitation projects for years. The government has also expanded grievance redressal mechanisms to speed up dispute resolution, a recurring pain point in Mumbai’s redevelopment ecosystem.
While the announcements arrive amid an intense political calendar, urban policy analysts argue that their long-term impact will depend on execution quality, environmental safeguards, and inclusive design. If implemented effectively, the reforms could mark a shift towards more equitable, better-planned neighbourhoods—a necessary step for Mumbai as it seeks to remain economically competitive while improving housing security and urban resilience.
