Walk through Girgaon, Kalbadevi, Bhuleshwar, Mazgaon, Byculla or Parel and you will see them everywhere: three- and four-storey buildings, many over a hundred years old, with wooden staircases, small rooms and tenants who have lived there for generations. Most of them are cessed buildings, and most are overdue for redevelopment.
For landlords, these buildings often bring more worry than income: tiny rents, rising repair costs and notices about the building’s condition. For tenants, they mean leaking roofs and shared toilets. The good news is that Mumbai’s planning rules give both sides a strong route forward, through Regulation 33(7) of DCPR 2034. This guide explains how it works.
Landlord or tenant of a pagdi or cessed building? Get a free first assessment from Mungekar Realty of your building’s redevelopment options. Register your property or WhatsApp us on +91 98207 44734.
What is a cessed building?
A cessed building is an old privately owned building in the Island City (south of Mahim and Sion) on which a repair cess is collected for MHADA’s Mumbai Building Repairs and Reconstruction Board (MBRRB). In return, the Board carries out structural repairs. These buildings are grouped by age:
- Category A: built before 1 September 1940
- Category B: built between 1940 and 1950
- Category C: built between 1951 and 30 September 1969
Most cessed buildings are tenanted under the old rent control system, often called pagdi. The landlord owns the land and building; the tenants hold protected tenancies at very low rents.
How Regulation 33(7) works
Regulation 33(7) is a special scheme for redeveloping cessed buildings in the Island City. Its basic idea is simple: every eligible tenant gets a new, larger home free of cost in the new building, and the developer gets extra buildable area to sell, which pays for the whole project.
What tenants get
- A new home equal to their existing carpet area, but never less than 27.88 sq m (300 sq ft) carpet. So a family in a 100 sq ft room gets at least 300 sq ft.
- The rehab entitlement is capped at 120 sq m per tenement.
- Shops and other non-residential tenants are rehoused with their existing area.
- Tenants must be certified as eligible by the Repairs Board. Tenancies created after 13 June 1996 are generally not counted.
- Rent or transit accommodation during construction, as agreed with the developer.
What the developer gets: incentive FSI
The plot gets either a base FSI of 3.0, or the area needed to rehouse all tenants plus an incentive, whichever is higher. The incentive grows when more plots are combined:
| Scheme size | Incentive on rehab area |
|---|---|
| Single plot | 50% |
| 2 to 5 plots together | 60% |
| More than 5 plots together | 70% |
Because tenant rooms are usually small and the minimum new home is 300 sq ft, the rehab area alone is often far more than the existing building. That is why effective FSI in 33(7) schemes is frequently well above 3.0. Depending on the numbers, part of the surplus area may have to be handed over to MHADA for housing.
A simple example
Take a 400 sq m plot with 40 residential tenants, each in a 120 sq ft room. Each tenant is entitled to at least 300 sq ft, so the rehab carpet area is about 1,115 sq m. Converted to built-up area and adding the 50% incentive, the scheme comes to roughly 2,000 sq m of construction, an effective FSI of about 5 on the plot. Tenants move from 120 sq ft rooms to 300 sq ft flats with their own kitchen and toilet, and the developer sells the remaining area. (This is a rough illustration; actual figures depend on road width, heritage rules, open spaces, fire norms and MHADA’s conditions.)
Consent and approvals
- Tenant consent: a 33(7) proposal needs the written, irrevocable consent of at least 51% of the eligible tenants.
- MHADA NOC: the Repairs Board certifies the tenant list and areas and issues a No Objection Certificate.
- MCGM approvals: IOD, commencement certificate and finally occupation certificate.
- Agreements: registered Permanent Alternate Accommodation Agreements for every tenant, and MahaRERA registration for the sale component.
Why landlords should act early: Section 79A
Under Section 79A of the MHADA Act, once a cessed building is declared dangerous by MCGM or the Repairs Board, the right to redevelop moves in a fixed order:
- The owner or landlord gets the first chance to submit a redevelopment proposal, within a set period, generally six months.
- If the owner does not act, the tenants, through a proposed co-operative society with the consent of at least 51% of them, get the next chance.
- If neither acts, MHADA can acquire the building and land and redevelop it, with the owner receiving only the compensation fixed under the Act.
For landlords, the message is clear. Waiting does not protect your property; it can mean losing control of it. A landlord who brings a well-planned proposal, with tenants on board, keeps the decision and gets a far better deal. A further amendment bill introduced in July 2026 aims to make it easier for both landlords and MHADA to take up dangerous buildings, so this area is likely to move faster.
What landlords can expect
The tenants’ homes are fixed by law, so the landlord’s return comes from the developer’s share of the sale area. Depending on the plot, location and negotiation, this can take the form of:
- an outright payment for the landlord’s rights;
- a share of the new sale flats or shops; or
- a mix of both.
A clear title is the landlord’s biggest asset in this negotiation. Property cards, the chain of ownership, and agreement among all legal heirs should be sorted out before talking to developers.
Combining neighbouring plots
Many South Mumbai plots are tiny, often 150 to 400 sq m. On their own, they produce tall, narrow buildings with little parking and high costs per sq ft. Combining two or more adjoining cessed plots helps in three ways: a higher incentive (60% or 70% instead of 50%), a better building layout, and far more interest from serious developers. If your neighbour’s building is in a similar condition, it is worth talking to them early.
Common hurdles
- Tenant disputes: unclear tenancies, deceased tenants without settled heirs, or sub-letting.
- Heritage and height limits: parts of Girgaon and other South Mumbai areas fall in heritage precincts or near protected structures.
- Narrow roads: road width affects how tall the building can go and fire access.
- Stalled projects: many 33(7) projects have stopped mid-way. Choosing a developer with real financial strength matters more than the headline offer.
First steps
- Gather the property card, title documents and Cadastral Survey number.
- Prepare a list of tenants with room sizes and use (residential or commercial).
- Collect any notices from MCGM or the Repairs Board, and any structural audit.
- Get an independent feasibility report before speaking to developers, so you know what the plot is really worth.
Own or live in a cessed building in South Mumbai? Mungekar Realty works with landlords, tenants and pagdi buildings across Mumbai, from feasibility reports to finding the right developer. Call 98207 44734 or visit mungekarrealty.com.
Related reading for landlords and tenants: Sell or redevelop an old tenanted building? · The landlord–developer agreement: clauses to insist on · Getting pagdi tenants to agree to redevelopment
This article is general information about DCPR 2034 Regulation 33(7) and Section 79A of the MHADA Act. Rules and their interpretation change; it is not legal advice. Please consult an advocate and architect for your specific property.