Bill proposes MHADA Act amendment to revive redevelopment of 13,000 Mumbai buildings

Recently in Mumbai, legislator Ajay Choudhari introduced a private member's Bill in the Assembly proposing an amendment to the MHADA Act to resolve legal ambiguities surrounding Section 79A. The proposed legislative change aims to clear the way for the stalled redevelopment of more than 13,000 old and dilapidated cessed buildings across Mumbai. This critical move could potentially benefit lakhs of tenants currently living in unsafe structures built before 1940.

The Bill proposes to authorise specific officers empowered by the Maharashtra Housing and Area Development Authority (MHADA) to exercise powers under Section 79A. By doing so, the amendment aims to remove the legal ambiguity that previously led the Bombay High Court to stay the implementation of this section. If the state government ultimately decides to introduce a similar Bill, it would replace the previous reference to a "competent authority," which had become the primary focal point of the legal challenges.

The issue of redevelopment has been a long-standing crisis for residents of these ageing structures. For years, the redevelopment of these buildings has remained stalled due to landlord-tenant disputes, prolonged litigation, and the reluctance of some property owners to redevelop unsafe structures.

Nearly a year ago, the Bombay High Court stayed around 935 notices issued by MHADA under Section 79A. The High Court observed at the time that the powers may have been exercised without proper legal authority. This legal matter is currently pending before the Supreme Court of India.

Sections 79A and 79B were originally inserted into the MHADA Act in 2020. This legislative action was taken following a series of fatal building collapses in Mumbai, including the Husaini Building collapse in 2017, the Dongri collapse in 2019, and the Fort building collapse in 2020.