The Kamathipura cluster redevelopment project in South Mumbai has moved closer to implementation, with MHADA announcing monthly transit rent of Rs 25,000 to Rs 35,000 for non-residential occupants and three years of rent support for residents who will be temporarily relocated.
The project is being undertaken by the Mumbai Building Repairs and Reconstruction Board of the Maharashtra Housing and Area Development Authority (MHADA) across approximately 34 acres. A detailed project plan was recently presented to residents, according to a report by Loksatta citing information provided by the authority.
Under the announced arrangement, residential occupants will receive monthly rent of Rs 25,000 during the temporary relocation period. They will also receive financial assistance of Rs 25,000 for vacating their premises. MHADA said residential occupants would receive two years of rent in advance along with a cheque covering the third year.
The rent package for non-residential occupants will vary according to the size of the commercial premises. Occupants of units measuring up to 200 square feet will receive Rs 25,000 per month. Those occupying areas between 200 and 400 square feet will receive Rs 30,000 per month, while occupants of premises larger than 400 square feet will receive Rs 35,000 per month.
The redevelopment plan covers 475 cess buildings and 259 non-cess buildings in the Kamathipura area. It is expected to rehabilitate approximately 8,001 occupants, including 6,625 residential occupants and 1,376 non-residential occupants. Around 800 landowners will also receive compensation according to applicable rules.
Residential occupants are to receive homes measuring 500 square feet in high-rise buildings. The redevelopment will also make approximately 4,500 homes available to MHADA through a lottery. High-rise residential and commercial buildings are planned as part of the sale component of the project.
The project is being implemented under a Construction and Development Agency model. Bhagirathi Housing Private Limited and Mathi Developers Private Limited have been appointed as the construction and development agency for the project and have prepared the detailed plan presented to residents.
The announcement addresses one of the central operational challenges in large-scale cluster redevelopment: moving existing occupants out while construction takes place. In Kamathipura, the relocation terms cover both homes and commercial premises, recognising the different categories of occupants identified in the project plan.
The project has not yet reached the construction stage. MHADA and the developer are expected to sign an agreement, after which the process of obtaining consent letters from occupants will begin. Eligibility determination will then be completed before construction can start.
Officials said the process would take several more months and that work could begin in 2027. The agreement between the developer and MHADA, followed by consent collection and eligibility verification, is the next stated sequence of milestones.
