The Slum Rehabilitation Authority (SRA) will play a pivotal role as the nodal body in the newly approved Slum Cluster Redevelopment Scheme. The scheme, which applies to clusters above 50 acres, will involve private participation and adhere to Coastal Regulation Zone (CRZ) norms.
By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News (TREN)
Mumbai | October 8, 2025 —
The Maharashtra Cabinet has greenlit a comprehensive Slum Cluster Redevelopment Scheme for Mumbai, to be overseen by the Slum Rehabilitation Authority (SRA). The initiative aims to transform large, contiguous slum areas into planned, integrated housing townships with upgraded infrastructure and enhanced civic amenities. The policy also aims to foster private developer participation while ensuring that slum dwellers receive permanent, dignified homes.
Key Provisions as per Cabinet Decision
- The scheme applies to slum clusters larger than 50 acres, where slums occupy at least 51% of the total area.
- The SRA will identify eligible clusters and submit recommendations to a High-Powered Committee (HPC) chaired by the Additional Chief Secretary (Housing). Final approvals will rest with the state government.
- Redevelopment can be executed through joint ventures with government agencies or by private developers selected through a tender process.
- If a private developer owns or controls more than 40% of a cluster, the HPC may allow direct implementation with government approval.
- Lands belonging to Central Government departments or public sector undertakings may be included in the redevelopment, subject to their consent.
- Private landowners participating in the scheme will be allotted developed plots with FSI equivalent to 50% of their original land valuation under a Town Planning Scheme mechanism.
- If landowners do not participate, land acquisition will proceed under the Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013, with acquisition costs borne by the developer.
- For slums in Coastal Regulation Zone (CRZ) areas:
- In CRZ-I, vacant land must be used for public amenities.
- In CRZ-II, developers may be permitted saleable components beyond rehabilitation requirements, under restricted conditions.
- In exceptional relocation cases, an FSI higher than 4 may be granted to accommodate displaced residents.
Expected Impact
This policy marks a significant shift from Mumbai’s traditional project-by-project SRA redevelopment model to a comprehensive, cluster-based approach. The government anticipates that this model will enhance housing density management, streamline approvals, and attract greater private investment. It is also expected to generate substantial employment in the construction and allied sectors while contributing to a more organized urban landscape.
However, the successful implementation of this policy will require strong coordination among the SRA, local authorities, and private developers. The challenges of assembling contiguous land parcels meeting the 50-acre threshold, balancing developer incentives, and ensuring transparent rehabilitation processes will demand consistent oversight and effective governance.
Source: Based on cabinet briefings and verified media reports (Times of India, Economic Times, Free Press Journal) dated October 8, 2025. The official Government Resolution (GR) will be updated once released.
About the Author
Arosh John, a MahaRERA-registered real estate consultant and the Founder of John Real Estate, brings over a decade of experience in the Mumbai Metropolitan Region (MMR). As the Editor-in-Chief of Thane Real Estate News (TREN), a digital news and analysis platform focused on infrastructure, policy, and property markets across Thane and MMR, he provides data-backed insights into evolving real estate trends and governance developments.
Disclaimer
This article is based on publicly available cabinet briefings and credible media reports. The official GR or Gazette notification will be incorporated once published. All names, brands, and trademarks — including “Maharashtra Cabinet” and “SRA” — are the property of their respective owners. This article is intended solely for informational and editorial purposes.
