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Mumbai Real Estate: Slum redevelopment in MMR gets faster with new 60-day rule

#Law & Policy#India#Maharashtra#Mumbai City
Last Updated : 11th Apr, 2025
Synopsis

In a push to accelerate slum redevelopment across Maharashtra, the state cabinet approved key amendments to the Maharashtra Slum Area (Reform, Elimination and Rehabilitation) Act, 1971. The revisions shorten the timeline for submitting redevelopment proposals, empower authorities to reassign projects if deadlines are missed, and streamline land leasing for joint ventures in the Mumbai Metropolitan Region (MMR). New provisions will also address non-participation by slum dwellers and delayed rent payments by developers. These amendments aim to fast-track the state's goal of becoming slum-free while ensuring better enforcement and accountability in rehabilitation schemes.

Earlier this week, the Maharashtra state cabinet approved critical amendments to the Maharashtra Slum Area (Reform, Elimination and Rehabilitation) Act, 1971, aiming to accelerate the pace of slum redevelopment and realise the broader objective of making the state slum-free.


Among the notable changes is a revised deadline for submission of redevelopment proposals. Once a land parcel is officially declared a slum area, the landowner, cooperative society, or appointed developer will now have just 60 days - down from the previous 120 - to submit a rehabilitation proposal. Failure to do so will result in the project being reassigned to alternate authorities for redevelopment. Officials confirmed this amendment will be reflected in Section 15(1) of the Act.

The revised policy also aims to streamline project execution in the Mumbai Metropolitan Region (MMR). When slum rehabilitation projects in the MMR are implemented through joint ventures involving government, semi-government bodies, or local self-governing institutions, the land will now be provided to them on a 30-year lease within 30 days of issuing a Letter of Intent. This amendment, to be included under Section 15-A, is expected to make it easier for these entities to access loans and financial assistance from banks and institutions.

Addressing a longstanding challenge in project execution, officials said that the amended Act will include detailed procedures under Section 33-A for dealing with slum-dwellers who do not voluntarily participate in redevelopment schemes. Furthermore, a new Section 33-B will be introduced to create a legal framework for recovering rent arrears from developers. Currently, developers are responsible for paying rent to slum-dwellers who vacate their homes but often delay or default on these payments. With this legal change, rent and other dues will now be recoverable under provisions of the Revenue Act.

In a related move last year, the state government had directed various public sector corporations to take up slum redevelopment at 228 locations across the MMR, signalling a broader push towards public-sector-led transformation of informal housing clusters.

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