The Maharashtra Housing Policy 2025, approved by the state cabinet in May and followed by a Government Resolution (GR) on July 23, has introduced a major reform in the real estate sector. One of the most notable provisions of the policy is the proposal for a separate RERA-like law for redevelopment projects—a long-pending demand to address the grievances of homeowners affected by delayed or stalled redevelopment works.
What is Redevelopment?
Redevelopment in Maharashtra primarily involves old and dilapidated housing societies, usually comprising two to seven-storey buildings. These buildings are demolished, and new modern structures with larger apartments are built. Residents of the old building are allotted flats in the new project free of cost, while the developer recovers profits by selling extra apartments in the open market.
Additionally, the government generates revenue through the sale of Floor Space Index (FSI) to developers, making redevelopment a crucial part of Mumbai’s and Maharashtra’s urban transformation.
Why Redevelopment Needs a Separate Law
Currently, the Real Estate (Regulation and Development) Act, 2016 (RERA) does not cover redevelopment projects. This gap has caused distress for thousands of homeowners, as complaints related to redevelopment are not entertained by the Maharashtra Real Estate Regulatory Authority (MahaRERA).
The Housing Policy 2025 clearly states:
“The RERA Act does not apply to redeveloped properties. A separate law is necessary to regulate such redevelopment projects and properties.”
The policy highlights that redevelopment projects often face long delays or remain stalled, leaving homeowners stranded in transit accommodations or dependent on monthly rent from developers. In several cases, developers stop paying rent, creating financial and emotional hardship for residents.
MahaRERA’s Current Stand on Redevelopment
Since its inception in May 2017, MahaRERA has handled around 30,000 complaints. However, it has consistently ruled that redevelopment projects fall outside its jurisdiction.
For instance, in December 2022, MahaRERA disposed of a complaint filed by homeowners of a Mumbai redevelopment project, stating that redevelopment components are not covered under the RERA Act. Instead, homeowners were advised to seek relief from other competent authorities.
This legal gap has reinforced the need for a dedicated regulatory framework, which the Housing Policy 2025 now proposes.
Key Provisions of the Maharashtra Housing Policy 2025
The Housing Policy 2025 includes targeted measures to address challenges in redevelopment and stalled housing projects:
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Separate RERA-like law for redevelopment projects to protect flat owners.
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Strong push for self-redevelopment by cooperative housing societies.
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Creation of a dedicated cell to assist societies opting for self-redevelopment.
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Allocation of ₹2,000 crore to support self-redevelopment initiatives.
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Use of cluster redevelopment models for greater efficiency and scale.
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Revival measures for slum redevelopment projects, ensuring housing for weaker sections.
Why This Policy Matters for Homebuyers
For flat owners living in old societies, redevelopment is often the only path to safe and modern housing. However, the absence of a regulatory framework has left many stranded in incomplete projects. The proposed RERA-like law would:
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Hold developers accountable for timelines.
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Protect the financial and residential interests of homeowners.
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Provide a grievance redressal forum under a legal framework.
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Ensure transparency in agreements, rent, and possession timelines.
By pushing for regulation, the government aims to balance development with accountability, safeguarding homeowners while keeping redevelopment projects financially viable for developers.
Conclusion
The Maharashtra Housing Policy 2025 represents a landmark step in addressing the long-standing concerns of homeowners caught in stalled redevelopment projects. By proposing a separate RERA-like law, the state is signaling its intent to bring redevelopment under a structured and transparent regulatory framework.
If implemented effectively, this move could not only revive stalled projects but also restore trust in redevelopment as a sustainable solution for Maharashtra’s aging housing stock, especially in urban areas like Mumbai, Thane, and Pune.
