Table of Content
- Why Redevelopment Projects Need Stronger Oversight
- What Does the Maharashtra Housing Policy 2025 Suggest?
- Experts Warn of Confusion from Multiple Laws
- Amending RERA Might Be a Better Solution
- Bombay High Court’s Role in Clarifying Redevelopment Under RERA
- The Best Way Forward for Maharashtra’s Redevelopment Policy
- Conclusion
The recently approved Maharashtra Housing Policy 2025 has sparked significant discussion in the state’s real estate ecosystem. Among its proposals, one of the most debated is the introduction of a RERA-like law for redevelopment projects in Maharashtra. While the government’s intent is to safeguard homeowners affected by stalled or delayed redevelopment schemes, experts warn that creating an entirely new regulatory framework may confuse buyers and increase compliance hurdles for developers.
Why Redevelopment Projects Need Stronger Oversight
Redevelopment plays a critical role in urban transformation across Maharashtra, particularly in densely populated regions like Mumbai, Thane, Pune, and Nagpur, where vacant land parcels are scarce. By replacing old and dilapidated housing structures with modern apartments, redevelopment helps meet the growing demand for housing while improving urban infrastructure.
However, despite its potential, redevelopment often faces multiple challenges. Many projects are delayed for years or even abandoned midway due to funding issues, legal disputes, or regulatory bottlenecks. Homeowners end up living in transit accommodations for longer than anticipated, while the rent promised by developers often stops midway. This causes significant financial, emotional, and social distress for affected families.
The Real Estate (Regulation and Development) Act, 2016 (RERA) brought much-needed transparency and accountability to India’s real estate sector, but it primarily governs new construction projects and does not explicitly cover redevelopment. This leaves a regulatory vacuum, with flat owners having limited legal protection if their redevelopment projects go off track.
Also Read: Maharashtra Housing Policy 2025: RERA-like Law Proposed for Redevelopment Projects
What Does the Maharashtra Housing Policy 2025 Suggest?
Acknowledging these challenges, the state government has proposed a separate RERA-like law for redevelopment projects in Maharashtra. The housing policy notes that complaints related to redevelopment often fall outside MahaRERA’s jurisdiction, leaving homeowners with no clear redressal mechanism.
The proposal stems from a history of stalled redevelopment projects across Maharashtra, particularly in Mumbai’s old housing societies and chawls. In several instances, developers have stopped paying transit rent or abandoned construction, leaving residents in limbo for years. The government believes that a dedicated law could ensure better monitoring of such projects and provide homeowners with a legal avenue for grievance redressal.
Experts Warn of Confusion from Multiple Laws
While the intent of the housing policy is widely acknowledged as positive, many legal experts and industry stakeholders believe that a separate RERA-like law for redevelopment projects in Maharashtra may not be the best solution.
A former MahaRERA member highlighted that buyers are already governed by multiple laws, including the Maharashtra Ownership Flats Act (MOFA) and the Co-operative Housing Societies Act. Adding another layer of regulation could lead to overlapping jurisdictions, prolonged litigation, and more confusion for homeowners seeking justice.
From a developer’s perspective, the move may also increase compliance complexity. Currently, most builders register the saleable portion of redevelopment projects under RERA. If a new law is enacted, they may be required to register the rehabilitation portion separately under another framework, increasing paperwork and costs. Industry professionals fear this could discourage developers from taking up redevelopment projects, further slowing down urban renewal.
Amending RERA Might Be a Better Solution
Instead of drafting a separate law, many experts recommend that the Maharashtra government work with the central government to amend the existing RERA Act to explicitly include redevelopment projects.
Keval Valambhia, COO of the Maharashtra Chamber of Housing Industry (MCHI), has emphasized that RERA was initially designed to protect homebuyers and ensure accountability in real estate. Expanding its ambit to include redevelopment would be more effective and practical than introducing a parallel regulatory framework.
A unified law would ensure that both new and redevelopment projects are monitored under a single regulatory authority, reducing duplication and providing clarity for all stakeholders.
Bombay High Court’s Role in Clarifying Redevelopment Under RERA
Adding another layer to the ongoing debate, the Bombay High Court is currently deliberating on whether redevelopment projects already fall under the purview of the RERA Act.
The case of Kishor Shamji Thakkar & Others vs. Sumer Builders Pvt. Ltd. is expected to provide much-needed clarity on the legal status of redevelopment projects. If the court rules that redevelopment falls within RERA’s jurisdiction, there may be no need for a separate law at all.
Legal experts suggest waiting for the court’s verdict before drafting any new regulations, as this decision will have a direct impact on the future of redevelopment governance in Maharashtra.
Also Read: UP Govt to Introduce QR Code-Based Property Ownership Verification by 2026
The Best Way Forward for Maharashtra’s Redevelopment Policy
Real estate professionals and legal analysts recommend a unified and streamlined regulatory system as the most effective way to handle redevelopment issues. By bringing redevelopment projects under the existing RERA framework, the government can ensure:
- Transparency and accountability for all stakeholders.
- Reduced compliance burden for developers.
- Single-window grievance redressal for homebuyers.
- Timely project execution with strict monitoring and penalties for delays.
Moreover, clear guidelines regarding timelines, rent payments, and dispute resolution mechanisms will enhance trust between developers and homeowners.
Conclusion
The debate over a RERA-like law for redevelopment projects in Maharashtra highlights an urgent need for regulatory clarity. While the government’s proposal is aimed at protecting vulnerable homeowners, industry experts strongly advocate for an amendment to the existing RERA Act rather than introducing multiple overlapping laws.
Whether the solution comes from the state government, the central government, or a judicial ruling, the ultimate goal should remain the same ensuring that redevelopment projects are completed on time, homeowners’ rights are safeguarded, and Maharashtra’s urban renewal continues smoothly.
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Ans 1. Redevelopment replaces old, unsafe buildings with modern housing, especially in land-scarce cities like Mumbai, Thane, Pune, and Nagpur. It helps meet housing demand and improves urban infrastructure.
Ans 2. Many projects get delayed or abandoned due to funding, legal, or regulatory issues. Residents often live in transit accommodations longer than expected, and developers sometimes stop paying agreed rent, causing financial and emotional stress.
Ans 3. RERA mainly governs new housing projects. Redevelopment issues often fall outside its scope, leaving homeowners with limited legal protection if a project stalls.
Ans 4. It suggests creating a separate RERA-like law dedicated to monitoring and regulating redevelopment projects, giving affected homeowners a clear grievance redressal mechanism.
Ans 5. They fear it could create overlapping rules with RERA, MOFA, and other housing laws, leading to confusion, prolonged disputes, and higher compliance costs for developers, which may discourage redevelopment.
Ans 6. Instead of a new law, many suggest amending the current RERA Act to explicitly include redevelopment projects under its jurisdiction, ensuring a single, unified regulatory framework.
Ans 7. The court is currently hearing a case on whether redevelopment projects are already covered under RERA. Its ruling could clarify the legal position and make a separate law unnecessary.
Ans 8. Experts recommend a unified system under RERA with clear timelines, rent payment rules, strict monitoring, and penalties for delays. This would protect homeowners while simplifying compliance for developers.