MHADA, Rustomjee Arm, and Housing Societies Sign Pact for GTB Nagar Redevelopment in Mumbai, Unlocking ₹4,521 Crore Project

Mumbai, March 6, 2026: Co-operative housing societies that are part of the Guru Tegh Bahadur Nagar Group Redevelopment Project in the Sion Koliwada area have signed a tripartite development agreement with the Maharashtra Housing and Area Development Authority and Keymidtown Developers Private Limited, a subsidiary of the Rustomjee Group .

Project Scope and Significance

The project aims to rehabilitate around 1,200 Sindhi families who migrated to India from Pakistan after Independence. According to Rustomjee Group, the redevelopment project spans approximately 11.54 acres (46,731.15 square meters) and is expected to benefit over 1,200 members while unlocking approximately 20.7 lakh sq ft of saleable area with a gross development value of approximately ₹4,521 crore .

This will be the first redevelopment project on private land to be implemented through MHADA .

Project Details

Under this redevelopment, three modern residential towers ranging from 39 to 48 storeys will be constructed for approximately 1,200 eligible beneficiaries. As per Development Control Regulation 33(9), a minimum FSI of 4.5 (inclusive of fungible FSI) will be made available .

Each eligible beneficiary will receive a free 635 sq. ft. self-contained residential unit with modern amenities. The project will be developed as a gated community, with accessible multi-level basement and podium parking facilitated through conventional ramp access .

Compensation and Maintenance

Upon receipt of the Commencement Certificate from the competent authority, all eligible resident beneficiaries will receive monthly rent compensation of ₹20,000 until the project's completion . After project completion, MHADA will undertake the maintenance and management of the buildings for five years .

Official Statements

The agreements were signed on March 5 at the MHADA headquarters in Mumbai in the presence of Sanjeev Jaiswal, Vice President and Chief Executive Officer of MHADA, and Boman Irani, Managing Director of Keystone Realtors (Rustomjee Group) .

"We are delighted to share that the Development Agreement and a separate Construction and Development Agreement with MHADA for the redevelopment of GTB Nagar have now been formally signed, marking a significant milestone in this transformative journey," said Boman Irani. "We remain committed to working closely with MHADA and all stakeholders to ensure that the existing residents of GTB Nagar receive their new homes at the earliest, and that the neighbourhood evolves into a vibrant, inclusive and future-ready community" .

Amenities and Construction

The redevelopment will include a wide range of modern amenities designed to improve residents' quality of life, including a fully equipped gymnasium, indoor games zone, yoga and multifunction studio, children's play area, library, and a 4,000 sq ft banquet hall with kitchen . The towers will be constructed using aluminium formwork technology, which enhances structural strength, durability, and construction speed, incorporating wind velocity considerations and seismic safety standards .

Historical Background

Since 1957, the Maharashtra government settled over 1,200 refugee families in approximately 1,200 apartments across 25 buildings constructed specifically for them under the Displaced Persons (Compensation and Rehabilitation) Act, 1954 . At the time, each apartment cost around ₹5,380, with a per-square-foot rate of ₹14–15. Today, property rates in the locality range between ₹20,000 and ₹30,000 per sq ft .

In 2020, the buildings were declared dangerous by the Brihanmumbai Municipal Corporation and were subsequently demolished, forcing residents to relocate . Following demands from residents and a 12-year-long wait fraught with legal battles, the state government decided to implement the redevelopment through MHADA .

The redevelopment plan had been stuck in limbo since 2013, when a handful of buildings signed an agreement with Navi Mumbai-based Lakhani Housing Corporation. However, a lack of consensus led to years of stalemate. A petition in the Bombay High Court had challenged MHADA's jurisdiction over private land, halting the government's plans temporarily, but that stay was eventually lifted