The Maharashtra Housing Policy 2025, approved last month, proposes a separate RERA-like law for redevelopment projects. The policy notes that since redevelopment is not covered under the Real Estate Regulatory Authority Act, 2016, complaints related to such projects are not addressed by MahaRERA.
The MahaRERA, which is the regulator of real estate projects in Maharashtra, has shot down several complaints by homebuyers who have approached it for relief against the developer in a redevelopment project.
The MahaRERA said that it is of the view that the redevelopment component does not fall within the purview of the RERA. Stating this, it had disposed of a complaint of homeowners of a redevelopment project in Mumbai, citing a lack of jurisdiction. The authority had given the homeowners the liberty to approach other competent authorities for their complaint.
The approved housing policy states that as RERA Act does not apply to redeveloped properties, a separate law is necessary to regulate such redevelopment projects and properties. The policy notes that several redevelopment projects have stalled in the past, leaving homeowners in distress as developers stopped paying them rent.
Justifying the stringent regulation for redevelopment projects in Maharashtra, the housing policy reads, "Due to several reasons, redevelopment projects either do not commence or get delayed, which results in financial, social, and mental distress for the flat owners. Most flat owners are forced to stay in transit camps or take monthly rent from the developer to arrange for accommodation. Many times, the developer stops providing residential rent. Redevelopment projects get delayed for various reasons."
The Maharashtra government’s 2025 housing policy has also drafted targeted measures to revive stalled real estate and slum redevelopment projects, particularly using a cluster redevelopment model for greater efficiency and scale.
The Maharashtra housing policy 2025 has strongly pushed self-redevelopment in its newly approved housing policy. To support the initiative, the state has allocated ?2,000 crore and proposed the formation of a dedicated cell to assist cooperative housing societies.
