MHADA Kamathipura Redevelopment Project Moves Forward, Construction Set to Begin on Diwali

Agreement Signed With Bhagirathi Housing and Mathi Developers

The long-awaited Kamathipura Cluster Redevelopment Project has moved into its implementation phase after the Maharashtra Housing and Area Development Authority (MHADA) signed a Construction and Development Agency (C&DA) agreement with Bhagirathi Housing Pvt. Ltd. and Mathi Developers. Physical redevelopment work is expected to begin around Diwali, marking an important step for one of South Mumbai’s major urban renewal projects.

34-Acre Kamathipura Cluster to Get Modern Infrastructure

The agreement was signed at the MHADA headquarters in Bandra in the presence of MHADA Vice President and CEO Sanjeev Jaiswal and senior officials.

The project will cover about 34 acres across Kamathipura’s Lanes 1 to 15. The redevelopment area includes approximately 475 cessed buildings and 259 non-cessed buildings. Around 8,001 residential and commercial occupants are associated with the project, including about 6,625 residential and 1,376 non-residential occupants. Nearly 800 landowners are also part of the redevelopment area.

The project is being carried out by the Mumbai Building Repairs and Reconstruction Board (MBRRB) under Regulation 33(9) of DCPR-2034. MHADA has been appointed as the nodal agency and Special Planning Authority for the project.

Focus on Safer Homes and Better Living Conditions

Kamathipura has many buildings that are nearly a century old. The area also has a dense population, narrow roads and limited infrastructure. Due to the small size of individual plots, MHADA has adopted a cluster redevelopment model instead of redeveloping buildings separately.

The integrated project is expected to improve housing conditions while upgrading roads, infrastructure and other essential facilities. The redevelopment also aims to preserve the historic character of Kamathipura while creating a safer and more organized neighborhood.

Eligible residential tenants will receive rehabilitation apartments with a carpet area of 500 square feet. Commercial occupants will also receive rehabilitation facilities as part of the project.

Around 900 Additional Homes Planned for MHADA

The redevelopment is expected to generate approximately 44,000 square meters of housing stock for MHADA. Around 900 additional housing units are proposed through this housing stock.

This approach is intended to support the area's existing residents while also adding new housing capacity under the broader redevelopment plan.

Financial Assistance for Residents and Businesses

MHADA has approved financial support measures to help residents and commercial occupants manage the transition during redevelopment.

Residential occupants will receive two years of advance rent along with cheques covering the following year. A one-time shifting allowance of Rs 25,000 will also be provided.

Commercial occupants will receive monthly rent based on the size of their premises. The approved amount is Rs 25,000 for premises up to 200 square feet, Rs 30,000 for premises between 200 and 400 square feet, and Rs 35,000 for premises larger than 400 square feet.

Landowners will receive Rs 25,000 per plot every month during the redevelopment period.

C&DA Process Completed for Ground-Level Work

The tender process to appoint the Construction and Development Agency began in June 2025. The state government approved the appointment of the developer in April 2026.

With the C&DA agreement now signed, the Kamathipura Cluster Redevelopment Project has moved from the planning stage toward on-ground execution. The proposed work is expected to bring new housing, upgraded infrastructure and improved civic facilities to the historic South Mumbai neighborhood while supporting affected residents and businesses throughout the redevelopment process.