Ask around in Girgaon, Lalbaug or Byculla and you will hear the same story. A family left their old cessed building expecting to return in three years. Ten, fifteen, sometimes twenty years later, they are still in a MHADA transit camp, or the developer has stopped paying rent and the site is an empty pit. If this is your family’s story, you are not alone, and you are not without options.
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.
Why projects stall
- The developer runs out of money, or diverts funds to other projects.
- Approvals get stuck, often because plans or tenant lists are disputed.
- The developer sells the development rights to another builder, and responsibility gets lost.
- Disputes between the landlord, tenants and developer end up in court.
Your rights do not lapse
An eligible tenant who vacated a cessed building keeps the right to a rehabilitation home in the new building, however long it takes. Keep these safe:
- Your original tenancy proof and old rent receipts
- The Repairs Board’s certified list of eligible tenants, if issued
- Your agreement with the developer (PAAA) and any letters about rent
- Your transit camp allotment letter
MHADA’s powers to take over
Amendments to the MHADA Act and the state’s orders now give MHADA’s Mumbai Building Repairs and Reconstruction Board wider powers over stalled cessed projects. Broadly:
- The Board can take over projects that have been delayed for two to three years after construction permission was granted.
- It can step in where tenants have not received rent from the developer for a long period, around two years.
- MHADA has issued notices to dozens of stalled projects under these powers.
A takeover is not instant, but it gives tenants a real route that did not exist before.
What tenants can do now
- Organise. Form a tenants’ association or proposed co-operative society. One letter signed by most tenants carries far more weight than many individual complaints.
- Collect the facts. When were permissions granted? When did work stop? How many months of rent are unpaid?
- Write to the developer with a deadline, and keep proof of delivery.
- Apply to the Repairs Board asking it to use its takeover powers, attaching your facts.
- Use MahaRERA if the project is registered, for delay and compensation.
- Consider replacing the developer. With proper legal process and majority support, a new developer can sometimes be brought in to complete the project.
Lessons for buildings that have not started yet
Most stalled projects began with an attractive offer from a developer who lacked the money to finish. If your building is only now planning redevelopment, check the developer’s completed projects and finances, insist on a bank guarantee, tie rent and penalties to clear deadlines, and never vacate before your agreement is registered.
Is your project stuck? Mungekar Realty works with tenants, landlords and developers across Mumbai to understand the options and, where possible, bring stalled projects back on track. Call 98207 44734 or visit mungekarrealty.com.
This article is general information and not legal advice. The exact powers and procedures depend on the current MHADA Act and government orders; consult an advocate for your case.