Table of Content
- Policy Approval and Implementation Timeline
- What is Redevelopment and Why Does It Matter?
- Why Does Maharashtra Need a Separate RERA-like Law?
- Key Highlights of Maharashtra Housing Policy 2025
- MahaRERA’s Stand on Redevelopment Complaints
- How Will the New Law Impact Maharashtra’s Real Estate Sector?
- Conclusion
The Maharashtra Housing Policy 2025, recently approved by the state government, has introduced a significant reform aimed at strengthening homebuyer protection and modernizing urban housing. One of its most notable features is the proposal for a separate RERA-like law specifically for redevelopment projects.
This move addresses a long-standing gap in the regulatory framework, as redevelopment projects currently fall outside the purview of the Real Estate (Regulation and Development) Act, 2016 (RERA). By introducing this new law, the state aims to ensure accountability, prevent project delays, and safeguard homeowners’ interests.
Policy Approval and Implementation Timeline
The Maharashtra Housing Policy 2025 was given cabinet approval in May 2025. To take it forward, the Housing Department issued a Government Resolution (GR) on July 23, 2025, marking a key milestone toward its implementation across the state.
This policy is expected to set a new benchmark for housing regulations, particularly by bridging gaps in redevelopment oversight and promoting urban renewal in Maharashtra’s rapidly aging housing stock.
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What is Redevelopment and Why Does It Matter?
Redevelopment refers to the process of demolishing old and dilapidated structures often two- to seven-storey buildings and replacing them with modern, larger housing complexes.
The practice offers multiple benefits:
- Bigger and better homes for residents: Existing occupants receive larger, upgraded flats in the new development.
- Profit for developers: Builders earn revenue by selling surplus apartments in the open market.
- Revenue for the government: The state earns income through the sale of additional Floor Space Index (FSI).
Given Maharashtra’s growing urban population and the aging condition of several housing societies, redevelopment has become essential for urban renewal and improved living standards.
Why Does Maharashtra Need a Separate RERA-like Law?
One of the most pressing issues highlighted in the Maharashtra Housing Policy 2025 is that redevelopment projects are not regulated under the existing RERA framework. This leaves thousands of homeowners without a proper forum to address grievances.
Key challenges include:
- Many redevelopment projects never take off or face long delays.
- Residents are forced to vacate their homes and live in transit accommodations.
- Developers often stop paying promised rent, leaving families under financial strain.
- Lack of oversight leads to mental and social distress for homeowners.
The policy explicitly states: “The RERA Act does not apply to redeveloped properties. A separate law is necessary to regulate such redevelopment projects and properties.”
By proposing a RERA-like law, the government aims to introduce strict guidelines and timelines to protect homeowners and ensure developers fulfill their obligations.
Key Highlights of Maharashtra Housing Policy 2025
The Maharashtra Housing Policy 2025 introduces several measures to revamp the state’s housing ecosystem:
- Dedicated regulation for redevelopment: The new law will closely monitor and regulate all redevelopment projects.
- Revival of stalled projects: Special initiatives for delayed or abandoned projects, including slum redevelopment schemes.
- Cluster redevelopment approach: Promotes the redevelopment of multiple small plots collectively to ensure efficiency and better infrastructure.
- Support for self-redevelopment: ₹2,000 crore allocated to encourage cooperative housing societies to undertake redevelopment independently.
- Dedicated redevelopment cell: A special cell will be established to assist housing societies through technical and legal complexities.
MahaRERA’s Stand on Redevelopment Complaints
The Maharashtra Real Estate Regulatory Authority (MahaRERA), established in 2017, has addressed over 30,000 complaints to date. However, redevelopment disputes have remained outside its jurisdiction.
For instance, in December 2022, MahaRERA dismissed a complaint filed by residents of a Mumbai redevelopment project, stating it lacked the authority to intervene as RERA does not cover such projects. Homeowners were advised to approach other forums for relief.
This legal vacuum has highlighted the urgent need for a separate law one that Maharashtra Housing Policy 2025 seeks to address.
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How Will the New Law Impact Maharashtra’s Real Estate Sector?
The proposed RERA-like law is expected to reshape the redevelopment landscape in multiple ways:
- Improved homebuyer confidence: Regulatory oversight will ensure developers adhere to project timelines and financial commitments.
- Transparency and accountability: Mandatory registration and reporting for redevelopment projects will reduce fraud and disputes.
- Boost to slum redevelopment and urban renewal: More organized and large-scale redevelopment projects will transform aging cityscapes.
- Increased investor interest: Developers and financial institutions will gain clarity and security in undertaking redevelopment ventures.
Conclusion
The Maharashtra Housing Policy 2025 is a landmark reform aimed at addressing gaps in the state’s housing ecosystem. By proposing a separate RERA-like law for redevelopment projects, the government is working to protect homeowners, revive stalled projects, and ensure transparency in urban development.
With its focus on self-redevelopment, cluster housing, and accountability, this policy is poised to redefine how redevelopment projects are executed in Maharashtra. For thousands of homeowners living in aging buildings, this law could finally bring relief and stability.
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Ans 1. It is a new state-approved housing policy aimed at modernizing Maharashtra’s urban housing sector. A key highlight is its proposal for a separate RERA-like law to regulate redevelopment projects, along with measures to revive stalled projects and encourage self-redevelopment by housing societies.
Ans 2. Currently, redevelopment projects are not covered under the existing RERA framework, leaving many homeowners without proper grievance redressal. The new law will bring accountability, timelines, and legal oversight to ensure developers meet their obligations and residents are protected.
Ans 3. The state cabinet approved the policy in May 2025, and a Government Resolution was issued on July 23, 2025. Implementation will begin across Maharashtra as the framework and new law are finalized.
Ans 4. Redevelopment involves replacing old and unsafe buildings with modern, larger housing complexes. It provides residents with upgraded homes, offers developers profits through additional units, and generates revenue for the state via increased Floor Space Index (FSI).
Ans 5. Many projects face indefinite delays or never start. Residents are forced into temporary housing, often without the promised rent from developers. The lack of regulatory oversight leads to financial and emotional stress for affected families.
Ans 6. The law will mandate registration and regulation of redevelopment projects, ensure strict timelines, improve transparency, and create a formal platform for grievance redressal. This will restore confidence among homeowners and attract responsible developers.
Ans 7. No, MahaRERA does not have jurisdiction over redevelopment projects. This gap became clear in several cases, including one in 2022 when it dismissed a redevelopment complaint due to lack of authority. The new law aims to fill this regulatory vacuum.
Ans 8. The policy includes measures such as reviving stalled projects, encouraging cluster redevelopment of multiple small plots, setting up a special redevelopment cell for legal and technical support, and allocating ₹2,000 crore to promote self-redevelopment by housing societies.
Ans 9. By improving transparency and oversight, the policy is expected to boost homebuyer confidence, attract investors, and accelerate urban renewal. It will particularly help in slum redevelopment and upgrading the state’s aging housing stock.
Ans 10. Homeowners living in old and unsafe buildings stand to benefit the most. The law will ensure they get larger, modern homes without prolonged delays, while developers gain a more organized and transparent framework to execute projects.