The Maharashtra government has introduced a significant reform through the Maharashtra Housing Policy 2025, proposing a separate RERA-like law exclusively for redevelopment projects. This move comes as a response to the fact that redevelopment is currently not covered under the Real Estate Regulatory Authority Act, 2016, leaving a regulatory gap that has caused numerous complaints to remain unaddressed by MahaRERA. With thousands of old buildings, particularly those with two to seven storeys, undergoing redevelopment in the state, the government has recognized the urgent need for a legal framework to regulate and monitor such projects effectively.
Approved by the cabinet in May 2025 and followed by a Government Resolution issued in July 2025, the housing policy lays out clear provisions to safeguard homeowners’ interests. Redevelopment projects often involve demolishing outdated structures and constructing modern, larger residential complexes. Residents typically receive bigger apartments at no cost, while developers earn profits by selling additional units in the open market. The state also generates revenue by selling floor space index (FSI) rights to developers. However, despite these benefits, many projects have stalled in the past, leaving residents displaced, dependent on temporary rent, or stuck in transit camps when developers fail to deliver on promises.
The new policy emphasizes that the absence of proper regulation has led to financial, social, and mental distress for homeowners. It highlights that developers often delay or abandon projects, sometimes stopping rental payments to residents midway. By proposing a RERA-like law, the Maharashtra government aims to establish accountability, streamline redevelopment timelines, and provide homeowners with a robust grievance redressal mechanism.
Additionally, the policy introduces targeted measures to revive stalled redevelopment and slum projects by adopting a cluster redevelopment approach.It also promotes self-redevelopment, encouraging cooperative housing societies to take charge of rebuilding projects independently. To support this, the state has earmarked ₹2,000 crore and proposed the creation of a dedicated cell to guide housing societies through the redevelopment process.
MahaRERA, which has been active since 2017 handled nearly 30,000 complaints, has consistently stated that redevelopment does not fall under its jurisdiction. This stance has left many homeowners without relief. The proposed law under the Maharashtra Housing Policy 2025 seeks to close this loophole, ensuring that redevelopment projects, which directly impact thousands of residents across the state, come under regulatory oversight. This policy is a crucial step toward protecting homebuyers, restoring confidence in redevelopment, and ensuring smoother urban renewal in Maharashtra.
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