A Masterstroke in Making? IAS Sanjeev Jaiswal’s MHADA Proposal Could Bring ₹90-Lakh Homes to Mumbai’s Common Man

At a time when owning a home in Mumbai often feels like chasing a mirage, a bold and forward-thinking proposal from the Maharashtra Housing and Area Development Authority (MHADA), guided by IAS Sanjeev Jaiswal, may redefine affordability for the city’s middle class. The proposal, currently under consideration by the Devendra Fadnavis-led Maharashtra government, aims to establish clear, uniform criteria for affordable housing in Mumbai, potentially capping prices at ₹90 lakh for a 60-square-metre home.

If approved, this proposal could mark one of the most transformative housing reforms in recent years, introducing a structured and equitable framework that balances affordability with market realities. Beyond its policy implications, it represents a significant step toward restoring faith in government-led housing initiatives at a time when real estate prices have pushed many Mumbaikars out of the ownership dream.

 

A Vision Rooted in Equity and Uniformity

The real estate market in Mumbai has long been a paradox of aspiration and inaccessibility. With average apartment prices often exceeding ₹2 crore in prime areas, even a modest flat remains out of reach for most salaried citizens. MHADA’s proposal is, therefore, a response to a growing urban crisis, the shrinking affordability window for the middle-income and economically weaker sections.

Under the 20 Percent Comprehensive Housing Scheme, MHADA has proposed that all developers undertaking projects on plots of 4,000 square metres or more must sell 20 percent of their total housing stock as affordable units. The twist in the new proposal is that “affordable” will have a clearly defined benchmark, 60 square metres or ₹90 lakh for Mumbai, and ₹60 lakh for the Mumbai Metropolitan Region (MMR).

The Genesis of the Proposal

As per the government decision dated October 8, 2013, developers building on plots larger than 4,000 square metres are required to reserve 20 percent of their construction for economically weaker and low-income groups. In exchange, they receive an equivalent incentive in floor area ratio (FAR) for open market sales.

However, as MHADA officials point out, the lack of updated guidelines has created inconsistencies in how developers define “affordable housing.” Prices fluctuate sharply between projects, leading to inequity and confusion. MHADA’s proposal seeks to standardize affordability and create a predictable, fair mechanism across all schemes.

Developers and the Loopholes

While the 20 percent inclusionary rule is progressive in principle, in practice it has faced challenges. In cities like Mumbai, large plots exceeding 4,000 square metres are rare, restricting the implementation of the scheme. Meanwhile, in the surrounding MMR, such as Thane, Kalyan, and Navi Mumbai, these projects are steadily taking shape.

In many cases, however, developers have exploited loopholes, using carpet area incentives while selling affordable units to private buyers rather than the intended beneficiaries. An internal investigation by the Nashik Housing Board found that nearly one lakh such houses were owned by private developers instead of being allotted to the economically weaker sections. This not only undermines the spirit of inclusive housing but also reduces the number of homes that MHADA can allocate to genuine applicants.

Sanjeev Jaiswal’s Push for Reform

Recognizing this gap, MHADA Vice Chairman and CEO Sanjeev Jaiswal has forwarded a revised proposal to the state government. His focus is clear, strengthen the scheme’s framework, ensure equitable access, and prevent misuse by mandating accountability. The proposal urges the government to amend the Integrated Development Control and Promotion Regulations (DCPR) so that MHADA receives a larger share of homes from ongoing and future projects.

Jaiswal’s proposal also emphasizes a proximity clause, if developers cannot build affordable homes on the same land parcel, they must construct them within a one-kilometre radius. This ensures that affordable housing remains geographically inclusive and prevents the isolation of economically weaker communities to distant locations.

Bringing Structure to Affordability

The proposed cap of ₹90 lakh for Mumbai and ₹60 lakh for MMR homes, while modest compared to market prices, reflects a realistic balance between affordability and urban land economics. As per Knight Frank’s 2024 Mumbai Residential Market Report, the average price per square foot in Mumbai exceeds ₹22,000, placing even a 600-square-foot home well above ₹1.3 crore in most suburbs. In that light, MHADA’s benchmark could broaden the eligibility base for middle-income families, enabling thousands to finally enter Mumbai’s formal housing market.

Moreover, the fixed size of 60 square metres (approximately 645 square feet) ensures a livable standard, aligning with global urban housing norms while maintaining construction viability for developers.
 

Addressing Policy Bottlenecks

While the proposal holds promise, it awaits government approval, a crucial step that will determine whether policy vision translates into on-ground impact. The absence of a uniform criterion so far has created distortions in pricing and allocation, undermining the intent of affordable housing schemes. If approved, the revised norms would create clarity across stakeholders, from developers and homebuyers to financing institutions and regulatory bodies.

MHADA’s move also signals a shift toward evidence-based policymaking. Rather than arbitrary price controls, the ₹90-lakh benchmark considers factors such as land cost, construction viability, and demographic affordability. It also aligns with state housing goals under the Pradhan Mantri Awas Yojana (PMAY), which seeks to promote inclusive urban growth.

Toward a More Inclusive Mumbai
 

The proposal’s underlying philosophy is simple but profound, affordability is not a privilege, it is a right. For Mumbai, a city of over 20 million residents, where space is scarce and prices astronomical, policies like these can redefine access and inclusion.

If accepted, the proposal could pave the way for tens of thousands of affordable units, each backed by regulatory clarity and transparency. It would also bring uniformity across projects, reducing ambiguity for developers while boosting public confidence in government-led housing initiatives.

A Step Toward Trust and Transparency

Ultimately, the proposal is not just about price, it’s about principle. By proposing structural reforms that promote fairness, curb misuse, and empower citizens, MHADA is reinforcing its reputation as a transparent, citizen-focused institution.
In a market often defined by opacity and speculation, such initiatives signal a refreshing shift toward data-driven, policy-led housing governance. The next move now lies with the state government, whose decision could determine whether this visionary framework becomes a model for urban housing across India.

For authentic information and official updates, citizens are encouraged to visit the MHADA official website and check lottery applications or scheme details via the MHADA lottery portal.