The Kamathipura redevelopment project in South Mumbai will provide monthly temporary rent of Rs 25,000 to Rs 35,000 to 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 34-acre cluster redevelopment will cover 475 cessed and 259 non-cessed buildings, with 8,001 residents scheduled for rehabilitation. Of these, 6,625 are residential occupants and 1,376 are non-residential occupants. Around 800 landowners will also receive compensation according to applicable rules.
Under the plan, residential occupants will receive homes measuring 500 square feet in high-rise buildings. The redevelopment will also make around 4,500 homes available to MHADA through a lottery. High-rise residential and commercial buildings will be constructed under the sale component of the project.
The project is being prepared under the Construction and Development Agency, or C&D, model. Bhagirathi Housing Private Limited and Mathi Developers Private Limited have been appointed as the C&D agency, and the company has prepared the detailed project plan presented to residents.
Residents will have to move temporarily to enable construction. MHADA has stated that residential occupants will receive temporary rent for three years, with two years of rent paid in advance and a cheque for one additional year. Residents will also receive Rs 25,000 in financial assistance for vacating their homes.
The revised rent structure for non-residential occupants is linked to the size of the commercial premises. Occupants of units measuring up to 200 square feet will receive Rs 25,000 a month. Those occupying spaces measuring between 200 and 400 square feet will receive Rs 30,000 a month, while occupants of premises larger than 400 square feet will receive Rs 35,000 a month.
The rent decision addresses a demand for higher compensation from non-residential occupants, whose businesses and other activities will be affected during the temporary relocation period. The source report does not specify the process for identifying eligible businesses, the location of temporary premises or the mechanism for handling disruption-related claims.
The immediate next step is an agreement between the developer and MHADA’s Mumbai Building Repairs and Reconstruction Board. After the agreement is signed, the consent process will begin, followed by the determination of eligibility. Construction will start only after the eligibility process is completed.
Officials said the project could begin in 2027, as several months will be required to complete the agreement, consent and eligibility-related procedures.
