Reconstruction of old cessed buildings:

The current permissible ceiling limit for carrying out structural repairs is Rs.2000/- per sq.m. built-up area of the cessed building as per the Maharashtra Govt.’s Ordinance dated 16.09.2008 issued by Housing Department of Government of Maharashtra. If the cost of structural repairs exceeds to Rs.2000/- per sq.mt. and tenants / landlords agree to bear the excess cost of repair, then the building can be undertaken for its repair. If the excess cost is not borne by the tenants/landlord of the building, then the building is declared as being beyond the "Economical Repairs" under Section 88(3)(a) of MHAD Act 1976 and proposed for reconstruction. Under the above circumstances, the building is declared under Section  88(3)(a) by Board and examined with the possibility of combined "Draft Scheme" under section 88(3)(b) considering the other buildings situated in the same premises.

If the proposal is found technically viable, then the building is acquired and undertaken for reconstruction under Development Control Regulation 33(9) of Mumbai. Under these circumstances the tenants of the building are temporarily shifted to Board's transit camp tenements and rehoused when the new building is ready for occupation as per usual procedure of MHADA.

As per the present policy of MHADA, the tenants are allotted atleast the tenements having 225 sq.ft. carpet area or area occupied by tenants in the old building. Maximum area allowed is 753 sq.ft. carpet area. As regards the non-residential tenements in the building, they are allotted area that was occupied by them in the original building. At present 4.00 FSI is being used for reconstruction of new building.

In case if a building cannot be reconstructed due to DC Rule/ Reservations or any other reason, the tenants of the respective building who are staying in transit camp or elsewhere are taken on the "Master List" being maintained by M.B.R.&R.Board. They are considered for allotment of tenement in new constructed building when additional / surplus tenements are available in any other schemes being executed by M.B.R.& R.Board or under DCR 33(7) through private Developer.