MHADA Kamathipura Redevelopment Deal Signed for 34-Acre Project

C&DA Agreement Clears the Way for Kamathipura Cluster Redevelopment

The redevelopment of Mumbai’s historic Kamathipura area has moved closer to the construction stage after the Maharashtra Housing and Area Development Authority (MHADA) signed a Construction and Development Agency (C&DA) agreement with private developers.

The Mumbai Building Repair and Reconstruction Board (MBRRRB), a division of MHADA, signed the agreement with Bhagirathi Housing Pvt. Ltd. and Mathi Developers for the redevelopment of a 34-acre cluster in Kamathipura. Physical construction is expected to begin around Diwali 2026.

The agreement marks an important step in turning the long-planned Kamathipura cluster redevelopment project into a planned residential and commercial development.

MHADA Kamathipura Project Moves Toward Construction

The C&DA agreement was signed at MHADA headquarters in Bandra in the presence of MHADA Vice President and Chief Executive Officer Sanjeev Jaiswal. MBRRB Chief Officer Milind Shambharkar and developer representative Atul Goyal signed the agreement during the ceremony.

Senior MHADA officials, board officers, department representatives, and representatives of the two development companies also attended the event.

The project is designed to replace aging buildings and improve infrastructure while supporting the rehabilitation of existing residents, tenants, and other eligible occupants.

34-Acre Kamathipura Cluster Covers Streets 1 to 15

Kamathipura has a dense urban layout with many old buildings, narrow streets, a large population, and infrastructure challenges. The redevelopment plan therefore focuses on developing the area as one coordinated cluster instead of handling individual buildings separately.

The project covers approximately 34 acres between Street Nos. 1 and 15. It includes around 475 cessed buildings and 259 non-cessed buildings.

The area has approximately 8,001 residential and commercial tenants. This includes around 6,625 residential tenants and 1,376 non-residential tenants. Around 800 landowners are also associated with the redevelopment area.

Eligible Residents to Receive 500-Square-Foot Homes

Under the proposed rehabilitation plan, eligible residential tenants will receive flats measuring 500 square feet.

The project also includes provisions for the rehabilitation of commercial occupants and landowners. The redevelopment is expected to add about 44,000 square meters of housing space for MHADA, creating an estimated 900 additional homes.

These additional homes are expected to increase the housing stock available through MHADA while supporting the planned transformation of the Kamathipura cluster.

Construction Expected to Start During Diwali

Physical work on the Kamathipura redevelopment project is planned to begin during Diwali. The start of construction would move the project from the planning and agreement stage toward on-ground implementation.

The redevelopment is planned to create a more organized urban environment with modern housing and improved infrastructure while retaining the area's historic character.

Financial Support Announced for Tenants

Financial assistance has also been planned to help eligible occupants during the redevelopment process.

At a meeting held on August 13, 2026, a proposal was approved to provide residential tenants with two years of advance rent, along with rent cheques for the following year and ₹25,000 toward relocation expenses.

Non-residential occupants will receive monthly rent ranging from ₹25,000 to ₹35,000, depending on the location of their premises. Landowners will also receive monthly rent of ₹25,000 under the proposed arrangements.

Kamathipura Redevelopment Aims to Create Modern Housing

The 34-acre cluster project represents a major redevelopment effort in one of Mumbai’s long-established neighborhoods. By combining rehabilitation, new housing, infrastructure improvements, and planned development, the project is intended to provide safer and more modern living conditions for eligible residents and occupants.

With the C&DA agreement now signed and construction targeted for Diwali, the Kamathipura redevelopment project is entering a new phase of implementation.