Real Estate Developers and Architects Call for Restoration of MHCR Act

CREDAI-MCHI, the leading body of real estate developers, and the Practising Engineers, Architects, and Town Planners Association (PEATA) have jointly urged Maharashtra Deputy Chief Minister Eknath Shinde to restore theMHCR Act to ensure the development and maintenance of urban areas in the state.

Real EstateUrban DevelopmentMhcr ActCredaimchiPeataReal Estate MaharashtraApr 09, 2025

Real Estate Developers and Architects Call for Restoration of MHCR Act
Real Estate Maharashtra:CREDAI-MCHI, the apex body of real estate developers, and the Practising Engineers, Architects, and Town Planners Association (PEATA) have come together to address a critical issue facing the urban development landscape of Maharashtra. In a recent letter to Deputy Chief Minister Eknath Shinde, they have strongly advocated for the restoration of the Maharashtra Housing and Area Development Act (MHCR Act).

The MHCR Act, which was repealed in 2020, played a pivotal role in the development and regulation of urban areas in Maharashtra. Its provisions ensured that urban planning and development were carried out in a structured and sustainable manner, benefiting both developers and residents. The repeal of the act has raised significant concerns among industry stakeholders, who fear that the absence of a comprehensive regulatory framework could lead to uncontrolled urban sprawl and degradation of infrastructure.

In their letter, CREDAI-MCHI and PEATA highlighted the importance of the MHCR Act in maintaining the balance between development and environmental sustainability. They pointed out that the act provided a clear and transparent process for obtaining approvals and clearances, which is essential for the smooth functioning of the real estate sector. The restoration of the MHCR Act would not only provide a regulatory framework but also boost investor confidence in the state's real estate market.

The organizations also emphasized the need for a collaborative approach to urban planning. They suggested that the government should engage with all relevant stakeholders, including developers, architects, engineers, and town planners, to draft a revised version of the MHCR Act that addresses the current challenges and aspirations of the state. This inclusive approach would ensure that the new act is comprehensive, sustainable, and in line with the goals of the state's urban development policies.

The concerns raised by CREDAI-MCHI and PEATA are not without merit. The urban landscape of Maharashtra, particularly in cities like Mumbai, Pune, and Thane, has been under immense pressure due to rapid urbanization and population growth. The absence of a robust regulatory framework has led to issues such as illegal constructions, inadequate infrastructure, and environmental degradation. The restoration of the MHCR Act would address these issues and pave the way for a more organized and sustainable urban development process.

Deputy Chief Minister Eknath Shinde has acknowledged the importance of the issue and has expressed his willingness to consider the recommendations made by CREDAI-MCHI and PEATA. He has directed the relevant departments to review the current urban development policies and explore the possibility of restoring the MHCR Act. This move is seen as a positive step towards addressing the concerns of the real estate and architecture communities in Maharashtra.

The real estate and architecture sectors in Maharashtra are vital to the state's economy and play a significant role in driving growth and development. The restoration of the MHCR Act would not only benefit these sectors but also contribute to the overall well-being of urban areas in the state. It is hoped that the government will take swift action to address the concerns raised and restore the regulatory framework that is essential for the sustainable development of Maharashtra's urban landscape.

Frequently Asked Questions

What is the MHCR Act?

The MHCR Act, or Maharashtra Housing and Area Development Act, is a regulatory framework that governed urban planning and development in Maharashtra. It provided a clear and transparent process for obtaining approvals and clearances, ensuring structured and sustainable urban development.

Why was the MHCR Act repealed?

The MHCR Act was repealed in 2020, reportedly due to the need for a more modern and updated regulatory framework. However, the repeal has raised concerns among industry stakeholders about the lack of a comprehensive regulatory framework for urban development.

What are the main concerns raised by CREDAI-MCHI and PEATA?

The main concerns raised by CREDAI-MCHI and PEATA include the lack of a regulatory framework for urban development, which could lead to uncontrolled urban sprawl and degradation of infrastructure. They also emphasize the need for a clear and transparent process for obtaining approvals and clearances.

How does the restoration of the MHCR Act benefit the real estate sector in Maharashtra?

The restoration of the MHCR Act would provide a regulatory framework that ensures structured and sustainable urban development. This would boost investor confidence, streamline the approval process, and contribute to the overall well-being of urban areas in Maharashtra.

What is the role of Deputy Chief Minister Eknath Shinde in this issue?

Deputy Chief Minister Eknath Shinde has acknowledged the importance of the MHCR Act and has directed the relevant departments to review the current urban development policies. He is considering the recommendations made by CREDAI-MCHI and PEATA to restore the act.

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