Mumbai Chawls Will Have To Wait More For Redevelopment

The decade-long delay in implementing the redevelopment of Bombay Development Directorate chawls was bad enough. More so, because the plan involved in revamping century-old chawls in many areas of central Mumbai, which are home to about 16,000 people. All leaky and dilapidated, the low-cost abodes are doing more harm than good to those who live in them. However, late last year, when the Maharashtra Housing and Area Development Authority (Mhada) started hiring architects to give a shape to the redevelopment plan, many thought all the obstacles were taken care of the process will finally start. However, this was not to be.

Before the redevelopment plan could start taking place, a group of “aggrieved” policemen approached the Bombay High Court, asking the court to consider granting ownership rights to the tenants even after retirement. In their defence, the policemen cited a 1994 ruling in which the government decided to regularise the tentaments of other government staff and encroachers. As a matter of fact, these chawls house government staff families and most of these are policemen.

The many hearings that followed over the issue saw the state defending its previous plan and proposing altering it recently. Authorities told the HC they planned to make a separate rule under the development control regulations for the redevelopment, which could take around six months. Aghast by the delays as "inhabitants live in unhygienic conditions and pose a threat to the public health at large", the HC Bench exclaimed: "This looks like the clock is moving backwards."

It is to be noted that in February this year, the HC had directed the state to ensure Mhada carried out the development work so that private developers did not make undue profits in developing the 19-acres of high-worth real estate spread over central localities of Worli, Naigaon and NM Joshi Marg.

How does it impact real estate in India's financial capital?

Prime locations in Mumbai are lying useless. The rent the occupants pay for these properties is Rs 100 per month. On the other hand, for a square foot of land in Worli, you will have to shell out at least Rs 41,512. The central location and the worth of the real estate here are also key reasons behind the occupants' unwillingness to shift to better houses in the city periphery.

An early implementation of the redevelopment plan would have helped the city generate huge revenue and unlock expensive real estate in a city that faces huge space crunch due to its geographical limitations.

The redevelopment would not only have cash in on the expensive real estate in prime areas, it would also have trigger construction activity in other areas, too. Those who have to move out will need new houses after all. This would have given a push to Mumbai property market, which has been subject to a slump in the recent times.

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