Mumbai's PAP Housing Crisis: A Major Hurdle for Infrastructure Projects

MUMBAI: The Brihanmumbai Municipal Corporation (BMC) is grappling with a critical housing shortage for Project Affected Persons (PAPs), which is impeding the progress of major infrastructure projects in Mumbai. According to a 2023 PAP survey, around 75,000 households across the city are in the path of key projects such as the Goregaon Mulund Link Road (GMLR), new flyovers, and road widening initiatives. However, the BMC currently has only 8,000 tenements available for PAPs, leaving a significant gap of 67,000 units.

The BMC has around 3,000 tenements near Anik Depot in Sion and 5,000 units in Mankhurd. However, the Mahul area, which was previously considered for PAP rehabilitation, is now off-limits due to high pollution levels, as mandated by the Bombay High Court. This further exacerbates the housing crisis.

In his budgetary policy statement for 2025-26, former municipal commissioner Bhushan Gagrani acknowledged that 34,129 PAP tenements had been approved by February. However, only 1,500 units are expected to be ready soon, which is a mere 2% of the required 75,000 units. The remaining 32,629 units are projected to be completed over the next two to five years, provided everything goes as planned.

The shortage of PAP housing is not just a logistical issue but also a result of a complex web of factors. Housing activists argue that the pace of urban renewal is outpacing the city's ability to implement it, especially in a space-starved metropolis like Mumbai. Abhijit Bangar, additional municipal commissioner (projects), highlights the immediate needs: 1,600 PAP houses for the Poisar River rejuvenation project, 800 units for the GMLR, and 1,600 for the Maghathane-Goregaon Link Road. These requirements alone account for more than half of the 8,000 available PAP units.

Another significant factor contributing to the housing shortfall is the alleged nexus between the BMC and private developers. Under Regulation 3(11) of the DCPR 2034, the BMC encourages private builders to construct PAP homes in exchange for Transfer of Development Rights (TDR) benefits. This arrangement, while beneficial for developers and the BMC, often fails to serve the intended beneficiaries—PAPs.

Congress corporator Meher Mohsin Haider raises concerns about the corruption in the PAP system, citing instances where ineligible families were declared eligible, depriving genuine PAPs of their rightful homes. She also questions why the BMC is purchasing PAP flats from private builders at exorbitant rates instead of acquiring them at cheaper rates from the Slum Rehabilitation Authority (SRA), which is obligated to provide 1% of its housing stock to the BMC for PAPs.

Bilal Khan, a housing activist, points out that the shortfall in PAP units is sometimes artificial. In March 2018, an RTI query revealed that the BMC had surplus PAP units in various parts of Mumbai but directed affected families to Mahul, which was later banned for rehabilitation due to pollution. Khan also alleges that the BMC has been hoarding PAP units as 'reserve housing stock' for future projects.

Kamlakar Shenoy, another activist, claims that many rehab homes built for displaced families are sold in the open market at market rates, allegedly with the connivance of civic officials. This practice creates an artificial shortage of PAP housing, leading to public harassment, delays in infrastructure projects, and increased costs.

The BMC's monetary compensation policy for PAPs who lose their homes is another contentious issue. PAPs are eligible for compensation ranging from ₹25 lakh to ₹40 lakh, depending on the size of their home, based on the Ready Reckoner. However, this amount is often insufficient to purchase a new home in Mumbai's high real estate market.

Vijay Chandmare, whose family was displaced due to a DP Road project, refused to accept a home in Mankhurd, citing its distance from their original location and the lack of a lift for his elderly parents. The family is now renting a home in Goregaon while trying to secure a PAP unit closer to their old home.

Similarly, Pallavi Jadhav and her neighbors in Yari Road fear being relocated to Mahul due to poor air quality. They feel powerless and unheard in the face of potential displacement.

The BMC is working on policy decisions to increase the PAP housing stock. One proposal involves converting transit camps built by the SRA into tenements for PAPs. However, housing activists and elected representatives emphasize that PAPs must be given the priority and dignity they deserve. At a recent civic improvements committee meeting, corporators raised concerns about corruption in PAP housing allocation, urging the BMC to address the issue more effectively.

A joint coordination committee has been established, including officials from the BMC, MMRDA, MHADA, SRA, and collectors' offices, to meet quarterly and address the PAP housing crisis. The committee aims to ensure that PAPs receive the necessary support and housing to facilitate smoother infrastructure development in Mumbai.