MHADA Issues Letter of Acceptance to Consortium for 33-Acre Abhyudaya Nagar Redevelopment

Mumbai, May 8: MHADA has accepted a consortium's bid for the cluster redevelopment of Mumbai's Abhyudaya Nagar colony. This significant project will provide residents with larger rehabilitation flats and includes revised terms like parking, corpus fund, and rent compensation.

Project Scale and Resident Benefits

The Abhyudaya Nagar colony comprises 48 buildings with 3,410 tenements of around 210 sq ft each. Of these, 3,335 are residential units while 75 are non-residential premises. Under the redevelopment plan, residents currently living in 210 sq ft carpet area tenements will receive free rehabilitation flats measuring 641 sq ft carpet area each - nearly three times their current living space.

Revised Terms and Conditions

Following a joint meeting chaired by then deputy chief minister and current chief minister Devendra Fadnavis on April 11, 2025, the tender conditions were revised. The revised terms include one parking space for each tenement holder, a corpus fund of Rs 5 lakh for every resident, and monthly rent compensation of Rs 25,000 per tenement holder until project completion.

Approval Process

The redevelopment proposal had earlier received approval from the Maharashtra cabinet on February 27, 2024, under Development Control Regulation (DCR) 33(5). The housing department issued a government resolution on March 6, 2026, after which MHADA initiated the tender process. The project will be executed under the Construction and Development (C&D) model through a developer-appointed framework.

Previous Challenges

The initial tender process did not receive responses despite multiple extensions, as several conditions had been incorporated based on suggestions from Fadnavis. MHADA said the redevelopment of the ageing buildings had remained pending for several years before the Mumbai Board was tasked with implementing the project under the C&D framework.