MHADA gets power to declare cessed buildings unsafe: What it means for 13,000 old buildings in South Mumbai

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The amendment revives Section 79A, a provision introduced in 2022 to ensure time-bound redevelopment of unsafe cessed buildings. (Express Photo by Akash Patil)A Bill passed by the Maharashtra legislature this month could finally break a years-long legal deadlock that stalled the redevelopment of nearly 13,000 cessed buildings across Mumbai’s Island City.The amendment to the MHADA Act explicitly designates the Maharashtra Housing and Area Development Authority (MHADA) as the “competent authority” to declare cessed buildings dilapidated, ending a legal dispute that had effectively stalled Section 79A of the MHADA Act since 2025. Once the Governor gives assent and the Supreme Court is informed of the amendment, MHADA is expected to restart proceedings under the provision.Q. What changes with the amendment?The amendment revives Section 79A, a provision introduced in 2022 to ensure time-bound redevelopment of unsafe cessed buildings.Cessed buildings are those constructed before September 1, 1969, in Mumbai’s Island City that pay a repair cess to MHADA. Once a building is declared C1 (dilapidated beyond repair), Section 79A sets out a fixed sequence for redevelopment. The landlord gets the first opportunity to redevelop the building within nine months. If the landlord fails, tenants with at least 51 per cent consent get six months to undertake redevelopment. If neither side acts within the prescribed timelines, MHADA steps in.The amendment removes the legal ambiguity over whether MHADA had the authority to issue C1 notices in the first place.Q. What happens next?Once the Bill receives the Governor’s assent, MHADA will inform the Supreme Court, where the matter is pending, before restarting proceedings under Section 79A. Officials said fresh structural audits of old buildings will be carried out and buildings classified as C1 will receive notices under the revived provision.Q. Does this guarantee redevelopment?No. The amendment removes one legal hurdle, but several disputes can still delay redevelopment.Story continues below this adLandlords can challenge a C1 classification by producing an independent structural audit claiming the building is repairable. Where reports differ, the Technical Advisory Committee (TAC) decides which assessment prevails. That decision can then be challenged before the Bombay High Court.Tenant groups have long alleged that structural audit reports and TAC decisions are vulnerable to manipulation, allowing redevelopment proposals to remain tied up in litigation.Q. Why do landlords often resist redevelopment?Despite additional Floor Space Index (FSI) incentives under Development Control and Promotion Regulations (DCPR) 33(7), redevelopment often stalls because of title disputes, litigation, disagreements with tenants and other legal or financial hurdles.The amendment also introduces another option.If tenants refuse to give the 51 per cent consent required for redevelopment, landlords can instead undertake reconstruction of the building. They will be entitled to zonal FSI to help recover construction costs, a provision intended to balance tenant safety with landlords’ property rights.Story continues below this adIf neither the landlord nor tenants act within the prescribed timelines, MHADA can step in. The amendment also expands MHADA’s powers, allowing it not only to reconstruct but also redevelop the building without requiring consent from either party, although both landlords and tenants will retain their legal entitlements in the redeveloped property.Q. What happens to the court cases?The amendment settles the dispute over MHADA’s status as the “competent authority”, but it does not end litigation over Section 79A.The Supreme Court and the Bombay High Court will continue hearing challenges to the validity of the provision itself, including petitions questioning notices issued earlier under Section 79A and landlords’ claims that the law infringes their property rights.MHADA officials, however, maintain that these legal challenges should not prevent implementation of the provision, arguing that the redevelopment of unsafe buildings cannot remain indefinitely stalled when lakhs of residents continue to live in structures at risk of collapse.Sabah Virani is a journalist with The Indian Express’ Mumbai bureau, covering infrastructure, housing and urban issues. In the realms of technical fields, she brings out human stories and the pace of change ongoing in the city. Expertise Specialised Role: Tracking infrastructure in Mumbai and the wider Mumbai Metropolitan Region (MMR), Sabah’s reporting tracks progress on various projects. From bridges to metros, she mixes technical details with resourceful information. Core coverage areas: Sabah keeps a close eye on the activities of the Mumbai Metropolitan Region Development Authority (MMRDA) and its projects across the MMR, including the metros, road projects, bridges, the bullet train, pod taxi, its role as a planning authority, and more. She also watches for developments from the Maharashtra State Road Development Corporation (MSRDC), City and Industrial Development Corporation of Maharashtra (CIDCO) and the GoM’s Urban Development department. Housing: Sabah also tracks developments in housing, particularly the workings of the Slum Rehabilitation Authority (SRA). She also keeps a keen watch on the big redevelopment projects ongoing in Mumbai, including the Dharavi Redevelopment Project, Motilal Nagar, Kamathipura, BDD Chawl redevelopment, among others. Occasionally, she reports on the environment, biodiversity, waste, arts and culture. Experience: Prior to working for the Indian Express, Sabah covered the municipality, civic issues and miscellaneous for Hindustan Times. Before that, she covered all things Mumbai for the online publication Citizen Matters. She has also worked as an editorial assistant at FiftyTwo.in.   ... Read MoreStay updated with the latest - Click here to follow us on InstagramTags:MHADAMHADA buildings