The Kamathipura redevelopment project in South Mumbai will provide monthly temporary rent support of Rs 25,000 to Rs 35,000 for non-residential occupants, while residential occupants will receive Rs 25,000 a month during relocation, the Maharashtra Housing and Area Development Authority (MHADA) has announced.
The announcement followed MHADA’s presentation of the project’s detailed plan to residents. The cluster redevelopment will cover approximately 34 acres and is being undertaken through the Construction and Development Agency (C&D) model. Bhagirathi Housing Private Limited and Mathi Developers Private Limited have been appointed as the C&D agency for the project.
According to the plan presented to residents, redevelopment will cover 475 cess buildings and 259 non-cess buildings in Kamathipura. Approximately 8,001 residents are expected to be rehabilitated, including 6,625 residential occupants and 1,376 non-residential occupants. Around 800 landowners will also receive compensation according to applicable rules.
Residential occupants will be provided homes measuring 500 square feet in high-rise buildings. The redevelopment will also make approximately 4,500 homes available to MHADA through a lottery system. High-rise residential and commercial buildings are planned under the sale component of the project.
Residents will be temporarily relocated before construction begins. MHADA has said that residential occupants will receive temporary rent for three years, along with financial assistance of Rs 25,000 for vacating their homes. The rent arrangement announced for residential occupants includes two years of rent paid in advance and a cheque covering one additional year.
The revised support for non-residential occupants will depend on the size of the commercial premises. Occupants of units measuring up to 200 square feet will receive Rs 25,000 per month. Those occupying between 200 and 400 square feet will receive Rs 30,000 per month, while occupants of spaces larger than 400 square feet will receive Rs 35,000 per month.
The rent revision follows a demand for higher support from non-residential occupants. The decision is significant for a dense, mixed-use neighbourhood where commercial premises form part of the everyday economic activity of the area. However, the supplied announcement does not specify how businesses will be assessed for eligibility, how the rent will be disbursed, or whether commercial occupants will receive any separate support for business interruption.
The project has not yet entered the construction stage. MHADA and the appointed developer are expected to sign an agreement, after which the process of obtaining consent letters from residents will begin. Eligibility determination will then be completed before physical construction can start.
Officials said the agreement and subsequent consent and eligibility processes would take several more months, with construction expected to begin in 2027. The immediate milestones are the execution of the agreement between the developer and MHADA, the collection of consent letters and completion of eligibility verification.
