State Intervenes in Byculla Redevelopment: Takes Over Stalled Projects, Blacklists Developers

MUMBAI: The Maharashtra government has taken a significant step to address the long-standing issues in Byculla's redevelopment projects. On Friday, the state approved the acquisition of three redevelopment projects that have been stalled for years. The projects, located on Fourth Peer Khan Street in Nagpada, include the Taumbawala Building, Deji Dharsi Building, and Zohra Mansion, collectively spanning 1,532.63 square meters.

The decision comes after developers failed to complete the construction and stopped paying transit rent to the tenants, leaving them in a state of hardship. The government resolution (GR) issued on Friday mandates that the Maharashtra Housing and Area Development Authority (MHADA) will take over these properties to ensure the completion of their redevelopment.

“The developer had made significant progress, completing construction up to the 20th floor, but failed to rehabilitate the tenants even after a decade. Furthermore, the developer stopped paying the tenants' transit rent for the past three years, leading to a protracted legal battle,” the GR stated. A group of affected tenants approached the Bombay High Court, which, on October 1, 2025, directed the state to take action under Section 91(A) of the MHADA Act. This section allows the government to acquire properties where developers have failed to complete their obligations.

Acting on the court’s directive, the state has authorized MHADA to take possession of the land and structures. The takeover process will be initiated only after thorough financial and legal audits confirm the absence of third-party rights, pending loans, or other encumbrances. This ensures that the state’s intervention is transparent and legally sound.

MHADA is set to begin work immediately to complete the redevelopment and rehabilitate the displaced tenants. The government has also ordered that the existing developer or owner be blacklisted and booked for non-compliance. This move is expected to set a precedent and deter other developers from similar malpractices in the future.

The state’s intervention is seen as a positive step towards ensuring the welfare of the tenants and the timely completion of redevelopment projects. It also highlights the government’s commitment to addressing long-standing issues in the real estate sector and ensuring that the rights of tenants are protected.

In a broader context, this decision reflects the ongoing efforts to streamline the redevelopment process in Mumbai. The city, known for its dense population and aging infrastructure, has been grappling with the challenges of urban renewal. The state’s proactive approach in taking over these stalled projects is a step in the right direction, aiming to improve the living conditions of residents and revitalize the urban landscape.

The success of this intervention will be closely monitored, and it is hoped that it will serve as a model for other stalled redevelopment projects in the city. The government’s decision to blacklist the developers involved in this case sends a strong message that non-compliance will not be tolerated, fostering a more accountable and responsible real estate sector.