Maharashtra Moves to Protect Residents in Redevelopment Projects ( Eknath Shinde housing policy )

Ajjay Bhagyakar
Oct 15
3 min read

Developers Must Pay Three Years’ Rent Upfront, Proposes Eknath Shinde

By Ajjay Bhagyakar | Published by Griha Realty Source: Times of India, X.com, Hindustan Times, Newspoint & other verified sources 📍Thane | October 2025

Eknath Shinde housing policy — *Source: Times of India*

A Landmark Step for Homeowners’ Security

In a bold and unprecedented policy move, Maharashtra’s Deputy Chief Minister Eknath Shinde has proposed a new regulation requiring developers to deposit three years of rent in advance before beginning any redevelopment project.

This initiative—designed to protect residents displaced during reconstruction—could redefine how redevelopment is executed across Mumbai Metropolitan Region (MMR), Thane, and Pune.

“No family should suffer because of stalled redevelopment. Their security comes first.”— Eknath Shinde, Deputy CM of Maharashtra

The Policy at a Glance ( Eknath Shinde housing policy )

🔹 Three Years’ Rent Upfront:Builders must deposit rent for three years before demolition or redevelopment begins, ensuring residents receive timely compensation even if the project halts.

🔹 Capability Assessment:Before approvals, the government will evaluate a developer’s financial strength and project track record.

🔹 Escrow & Tripartite System:All projects will require a tripartite agreement between the society, developer, and the planning authority. Rent and rehabilitation funds will be maintained in a secured escrow account.

🔹 Accountability for Stalled Projects:Developers who delay or abandon work may face penalties and loss of future redevelopment rights.

🔹 Empowering SRA:The Slum Rehabilitation Authority will soon gain powers to directly collect unpaid rents from developers and recover them through TDR (transferrable development rights).

Background: Why This Policy Matters

Maharashtra’s redevelopment landscape—especially in Mumbai and Thane—has long been burdened by incomplete projects, broken promises, and financial distress. Thousands of families have been displaced without adequate rent or alternate accommodation.

The proposed regulation directly addresses these challenges by demanding financial accountability upfront.

“This rule filters out speculative builders and brings genuine, financially sound players to the table.”— Urban Policy Expert, Mumbai Mirror Panel Discussion

The Bigger Picture: “Majhe Ghar – Majha Adhikar”

This initiative forms part of the state’s flagship housing mission “Majhe Ghar – Majha Adhikar” (My Home, My Right), which targets 35 lakh affordable homes by 2030.

Key features of this broader policy include:

Creation of a State Housing Information Portal (SHIP) for transparency and monitoring.
Building a government land bank for affordable housing.
Incentives for women, senior citizens, and low-income groups.
Mandatory tripartite agreements in all redevelopment schemes.

Case Study: Ghatkopar Model Redevelopment

The policy’s spirit is already visible in the Ramabai Ambedkar Nagar & Kamraj Nagar redevelopment in Ghatkopar.

Total Investment: ₹ 8,498 crore
Homes: 4,345 in Phase I
Towers: 11 (22 floors each)
Land Area: 6.95 hectares

Residents are protected from indefinite displacement through structured rent timelines—a glimpse into how the new state guidelines could reshape redevelopment governance.

Challenges Ahead

Concern	Impact / Issue	Possible Solution
High Capital Load	Small developers may struggle to deposit three years’ rent upfront	Phased deposit system or state backed guarantees
Rent Benchmarking	Rent amounts vary by zone and market	Government-issued standardized rates
Escrow Transparency	Risk of fund misuse	Independent audits and digital tracking
Developer Qualification	Subjective capacity assessment	Objective criteria and ratings
Price Impact on Buyers	Costs may pass to consumers	Incentives for affordable projects

What It Means for the Market

For Residents: Assurance of rent and housing continuity.
For Societies: Stronger bargaining power with developers.
For Builders: Need for robust financial discipline.
For Investors: Increased trust and reduced risk exposure.

The move could create a more transparent, responsible, and equitable redevelopment ecosystem—a much-needed reset for urban India.

Industry Reaction

Real estate experts and resident welfare groups have largely welcomed the proposal, calling it a “reform that puts citizens first.”

Social media discussions on X.com reflect strong support from both citizens and industry leaders, urging other states to adopt similar protections.

The Editorial View

If implemented with rigour, Maharashtra’s “Three-Year Advance Rent” rule could become a template for ethical urban renewal nationwide.

It promotes trust over transaction, ensuring redevelopment doesn’t mean displacement—but dignified progress.( Eknath Shinde housing policy )

About the Author

Ajjay Bhagyakar is a housing policy observer and urban realty commentator associated with Griha Realty.He writes on housing reform, infrastructure policy, and city redevelopment for Indian and global readers.