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MHADA cuts RR charges for tenants of old cessed buildings

29 Apr 2025 Affordable Housing MPE
MHADA cuts RR charges for tenants of old cessed buildings
MHADA Reduces RR Charges for Tenants of Old Cessed Buildings in Mumbai In a significant move to provide relief to tenants of old and dangerous buildings, the Maharashtra Housing and Area Development Authority (MHA

The Maharashtra Housing and Area Development Authority (MHADA) has introduced a new policy aimed at alleviating the financial burden on tenants residing in old and unsafe cessed buildings in Mumbai. This policy reduces the ready reckoner (RR) charges for additional area allotted to eligible tenants, marking a significant shift in how these charges are applied.

Reduction in Ready Reckoner Charges

Under the new policy, tenants will now pay 100% of the RR rate for any additional area allotted beyond their original or permissible residential units. This is a decrease from the previous rate of 110%. The adjustment is expected to provide much-needed relief to tenants who have been grappling with the challenges of unsafe living conditions and the slow pace of redevelopment in their areas.

Inclusion of Ground Floor Tenants

Another noteworthy aspect of this initiative is the inclusion of ground-floor tenants in the redevelopment schemes. Previously, these tenants were excluded from eligibility for benefits, creating uncertainty for those living in buildings where only upper floors had been demolished. With the new policy, ground-floor tenants will be added to the Maharashtra Building Repairs and Reconstruction Board’s (MBRRB) master list, ensuring they receive the same benefits as other tenants. This move aims to create a more equitable treatment for all residents of old cessed buildings.

Broader Efforts for Housing Solutions

This policy is part of a larger effort by MHADA to enhance compensation and housing opportunities for residents of old cessed buildings. The authority is committed to addressing the long-standing issues faced by these tenants, many of whom have been waiting for proper housing solutions. By reducing RR charges and including ground-floor tenants, MHADA is taking steps to ensure that all residents are treated fairly and have access to better living conditions.

Ongoing Surveys and Redevelopment Plans

In addition to the new policy, MHADA is conducting a biometric survey of residents in transit camps. This survey aims to categorize residents into three groups—A, B, and C—based on their eligibility and current living conditions. Residents in Category A, whose original buildings cannot be rebuilt, will receive priority when added to the master list for redevelopment. Furthermore, if the redevelopment of dangerous cessed buildings encounters delays, affected tenants are to be given appropriate support.

Practical Takeaway

The recent changes by MHADA are a positive development for tenants of old cessed buildings in Mumbai. By reducing RR charges and including previously excluded ground-floor tenants, the authority is working towards providing fairer housing solutions. Tenants should stay informed about their eligibility and the ongoing surveys to ensure they receive the benefits they are entitled to.

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