By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News (TREN)
Thane | October 2025
Maharashtra’s new Housing Policy framework has introduced a significant compliance requirement for redevelopment projects. As per the Maharashtra State Housing Policy 2025, before demolition or vacating of existing structures, developers will be required to deposit three years’ rent into a monitored ESCROW account, under the supervision of the planning authority.
This update has been reiterated in public statements by Deputy Chief Minister Eknath Shinde and reported by major media outlets. It signals a shift towards stronger financial safeguards for residents during redevelopment.
Policy Reference — What the Government Resolution States
The Maharashtra State Housing Policy 2025 (Government Resolution issued by the Housing Department) states:
“Before granting permission for redevelopment, the Planning Authority shall ensure that an advance amount equivalent to three years’ rent is deposited into an ESCROW account. The advance rent for each year shall be deposited annually, and redevelopment shall proceed only after such financial security is in place.”
The policy also mandates a tripartite agreement between:
- The Planning Authority
- The Developer
- The Housing Society / Resident Body
This structure is intended to ensure timely rent compensation during the transition period.
Existing SRA Rule vs New ESCROW Clause
| Existing Practice (SRA / Rehab Projects) | New Policy Framework (Housing Policy 2025) |
|---|---|
| 2 years’ rent paid in advance + 1 year’s post-dated cheques. | 3 years’ rent to be deposited in ESCROW before demolition or resident displacement. |
| Payments are directly managed between developer and residents. | ESCROW is authority-monitored, ensuring accountable rent release. |
| Rent delays require residents to pursue recovery individually. | Escrow enables structured disbursal without individual follow-ups. |
Applicability — Who This Impacts
The policy clause is positioned under Planning Authority oversight, indicating potential applicability to:
- Co-operative Housing Society Redevelopment (Thane, Mumbai, MMR)
- Cluster Redevelopment proposals under Thane DP 2046 / Mumbai DP 2034
- MHADA / MMRDA / Municipal Corporation redevelopment permissions
- SRA schemes may continue under existing compensation formats until updated by a separate circular
Why This Matters for Thane Societies
Thane is entering a high-redevelopment cycle. Many societies experience rent disruption or stalled projects after vacating. The escrow mandate provides a policy-backed protection mechanism, ensuring financial safeguards before possession is handed over.
Action Checklist for Housing Societies
Before vacating or finalising handover documentation, societies should:
- Request official proof of ESCROW deposit covering 36 months’ rent.
- Insist on a tripartite agreement mentioning escrow terms, release mechanism and enforcement.
- Document a resolution that possession will not be handed over without escrow compliance.
- Attach the relevant Housing Policy 2025 clause in society meeting minutes and tender issuance.
- Seek clarity on bank guarantee or additional security, if mentioned in follow-up authority circulars.
TREN Insight
This clause signals a structural shift towards escrow-regulated redevelopment in Maharashtra. Societies that formally cite this policy reference in their documentation will be better positioned to negotiate terms and secure uninterrupted rent during construction phases.
About the Author
Arosh John is a MahaRERA-registered real estate consultant with over a decade of experience in the Thane property market. Recognised for his research-based documentation, he tracks housing policies, infrastructure milestones and market movements across Thane–MMR. Through TREN, he publishes factual, regulation-aligned real estate intelligence for residents, NRIs, buyers and informed market participants.
Disclaimer
This article is based on the Maharashtra State Housing Policy 2025 and public statements by state authorities. Final implementation depends on Government Resolutions and circulars issued by planning authorities. Readers should verify specific clauses through official notifications or legal professionals before executing redevelopment agreements. TREN is an independent documentation platform and does not endorse any redevelopment contractor or proposal.
