In short: a cessed building is an old building in Mumbai’s Island City on which a repair cess is levied under the MHADA Act, 1976. The cess is collected along with property tax and goes towards the structural repair of these ageing buildings, which are mostly occupied by tenants rather than owners. Cessed buildings are redeveloped under special rules, principally Regulation 33(7) of DCPR 2034.
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 “cessed” means
A cess is a special levy charged for a specific purpose. In the case of these buildings, the purpose is repair. Decades ago, many old rented buildings in South and Central Mumbai were falling into disrepair because rent control kept rents very low, and landlords had little money or incentive to maintain them. The State’s answer was to levy a repair cess on these buildings and to make a public body responsible for structural repairs. Today that work is handled by the Mumbai Building Repairs and Reconstruction Board (MBRRB), a unit of MHADA.
So when someone describes a property as “cessed” or a “cess building”, they mean a building that falls within this repair and reconstruction framework. It is a legal classification, not simply a description of an old building.
Which buildings are cessed
Cessed buildings are found only in the Island City, broadly from Colaba to Mahim and Sion. They were built before 30 September 1969 and are divided into three categories by date of construction:
- Category A: buildings constructed before 1 September 1940
- Category B: buildings constructed between 1 September 1940 and 31 December 1950
- Category C: buildings constructed between 1 January 1951 and 30 September 1969
The category matters because it reflects the building’s age and therefore its likely structural condition, and it has historically affected how repair work is prioritised. An equally old building in the suburbs is not a cessed building, even if it is tenanted and in poor condition. Suburban tenanted buildings follow a different route, explained in our article on pagdi buildings in the suburbs.
How to check whether your building is cessed
- Look at the property tax bill: cessed buildings show a repair cess component.
- Check MBRRB’s records, or ask the Board’s office for the building’s cess number and category.
- Look for past repair work carried out by the Repair Board, which is usually recorded.
Confirming this at the outset is important, because the regulation under which a building is redeveloped depends on it.
Cessed building, pagdi and old building: not the same thing
The three terms overlap but mean different things. “Cessed” is a legal category of Island City building. “Pagdi” describes a tenancy arrangement within a building. “Old building” is simply a description of age. Most cessed buildings have pagdi or rent-controlled tenants, but not every pagdi tenancy is in a cessed building. Our detailed guide to old, cessed and pagdi buildings explains the differences.
Who repairs a cessed building?
Structural repairs to cessed buildings are carried out by the Repair Board, funded through the cess together with government contributions. Routine maintenance, however, does not automatically fall on the Board, and responsibilities between landlord, tenants and MHADA are a frequent source of confusion. We cover this in detail in who repairs an old cessed building.
How cessed buildings are redeveloped
Repairs can only extend a building’s life so far. Most cessed buildings are now well past their intended lifespan, and redevelopment is often the only lasting solution. The main route is Regulation 33(7) of DCPR 2034, which gives incentive FSI so that the project can rehouse existing tenants free of cost and still be financially viable. Key features include:
- Each eligible residential tenant is entitled to a new home of at least 27.88 sq. m (300 sq. ft) carpet area, or their existing area where larger, subject to the limits in the regulation.
- Tenants in redeveloped cessed buildings typically become owners of their new flats and members of a cooperative society.
- The landlord, a developer appointed by the landlord, or the tenants’ society can take up redevelopment, with MHADA’s No Objection Certificate.
Section 79A of the MHADA Act also sets out a sequence for buildings declared dangerous: the landlord has the first right to redevelop, then the tenants’ society, and finally MHADA. This provision has been the subject of litigation, so its current application should be checked case by case. Our 33(7) guide for landlords and tenants covers the process step by step.
If your building receives a dangerous notice
Cessed buildings are surveyed regularly, and those found unsafe may be classified as C1 (dangerous). Tenants are then asked to vacate, often to MHADA transit accommodation. Read what to do after a C1 or dangerous notice and your rights in a transit camp.
Frequently asked questions
Is a cessed property the same as a cessed building?
Yes. “Cessed property”, “cess building” and “cessed structure” are used interchangeably to mean a building on which the MHADA repair cess is levied.
Are there cessed buildings in the suburbs?
No. The repair cess applies to buildings in the Island City. Old tenanted buildings in the suburbs are redeveloped under different provisions.
Do tenants lose their rights when a cessed building is redeveloped?
No. Eligible tenants are entitled to rehabilitation in the new building. See pagdi tenants and redevelopment for details.
Need help with a cessed building?
Mungekar Realty advises landlords and tenants of cessed and pagdi buildings across Mumbai on eligibility, the applicable regulation and the redevelopment options available. To discuss your building, register your property or call or WhatsApp us on +91 98207 44734.