Maharashtra’s 2025 Law: Transforming Redevelopment with New Regulations

Maharashtra Housing Policy 2025: The Path to a Dedicated Redevelopment Law

The cabinet of Maharashtra recently took a radical step forward. In May 2025, the state approved the Maharashtra Housing Policy 2025, aiming to fix gaps in how redevelopment projects are governed. On July 23, a Government Resolution was issued marking true progress on this ambitious policy.

What is Redevelopment?

Across Maharashtra, aging buildings—from two to seven storeys—are getting a fresh start. Redevelopment means demolishing the old, building anew. Residents are rewarded with spacious apartments in the reconstructed tower, without having to pay. Developers profit by selling new units and the government earns revenue from the sale of floor space index (FSI).

Why a New Law?

Current laws like the Real Estate Regulatory Authority Act, 2016 (RERA) ignore redeveloped properties. This means homeowner complaints are not heard by MahaRERA. The new policy recognizes the need for a dedicated law covering redevelopment projects, offering protection and accountability for all stakeholders.

• Thousands of projects have stalled.
• Homeowners face rent delays or transit camps.
• Developers sometimes stop paying residential rent.

Policy Interventions & Solutions

The 2025 policy introduces targeted steps to revive halted real estate and slum redevelopment—especially by promoting cluster redevelopment models. A big push for self-redevelopment is also underway. To help cooperative housing societies lead their own projects, the state has allocated ₹2,000 crore and plans a dedicated support cell.

MahaRERA’s Standpoint

Since its launch in May 2017, MahaRERA has ruled that redevelopment is outside its jurisdiction. Homebuyers’ complaints are often referred elsewhere. For example, a December 2022 ruling sent Mumbai homeowners seeking help to other competent authorities. MahaRERA has resolved about 30,000 homebuyer cases since inception, but redevelopment issues remain unaddressed.