Cluster redevelopment transforms entire neighbourhoods, offering residents many advantages in terms of larger homes, amenities and higher standards of living, as Deputy Chief Minister Eknath Shinde reminded Mumbaikars recently
Last week, when Maharashtra’s Deputy Chief Minister Eknath Shinde urged residents to support the city’s cluster redevelopment model while addressing audiences in Thane, he highlighted the many advantages of an initiative that the government has been taking very seriously.
As he pointed out in the State Housing Policy 2025 report: “We are bringing together all agencies like CIDCO, MMRDA, MSRDC, MahaPreet, BMC, MHADA and SRA to restart stalled projects quickly. Cluster development has its own significance—it offers open spaces, playgrounds, schools and medical facilities all in one place.”
Cluster redevelopment has been gaining traction the world over, and in Mumbai, the Maharashtra government introduced it in 2009 in a bid to ensure comprehensive urban renewal. With the redevelopment of multiple dilapidated buildings and neighbourhoods, the 33(9) Scheme paved the way for a more holistic approach rather than having individual pencil towers springing up sporadically in busy, overstretched areas. For the island city of Mumbai, the parameters were set at a minimum of 4,000 sq. mt., while for the suburbs and extended suburbs, a minimum of 6,000 sq. mt. was required.
The Shreepati Group was the first to receive approval under the DCPR 33(9) cluster redevelopment policy, for a landmark project at N M Joshi Marg, Parel, in 2010. They are now recognised as pioneers in the field.
The policy, however, lacked clarity and had several lacunae, leading to confusion, delays, and consequently, a certain amount of mistrust among long-term residents worried about losing their homes. Greed, of course, also came into play as people sought larger homes than they would sometimes be eligible for.
Over time, the government refined the policy to expedite the development and iron out issues. In November 2025, it also rolled out the Slum Cluster Redevelopment Scheme (SCRS), targeting clusters covering a minimum continuous land area of 50 acres, of which at least 51% is occupied by slums. It combined properties of various kinds, including private, government-owned, and municipal plots. A key shift was the removal of the requirement of individual slum-dwellers’ consent in cluster projects. The Slum Rehabilitation Authority (SRA) became the nodal agency for implementation.
At a Cabinet meeting on November 18, 2025, the Government approved a comprehensive policy for the combined-group redevelopment of MHADA projects with an area of 20 acres or more in Mumbai and its suburbs. According to official sources, MHADA built 56 colonies for the middle-income group (MIG) and low-income group (LIG) between 1950 and 1960; there are approximately 5,000 cooperative housing societies in these. MHADA has announced that its collective group redevelopment will include vital infrastructure such as water supply and sewage, along with modern amenities including lifts, parking, gardens, swimming pools and much more. As per this policy, since the maximum redevelopment area will be available, it will not be necessary to take the residents’ consent. However, it will be mandatory for the developer appointed through the tender process to obtain the consent of the housing societies. For this redevelopment, MHADA would be the planning authority for 114 projects under the jurisdiction of the Mumbai Board.
On December 11, Mr Shinde made further landmark announcements regarding the redevelopment of pagdi homes, unveiling a separate regulatory framework that would protect the legal rights of both landlords and tenants. Such properties make tenants quasi-owners, leading to a host of issues for landlords.
With many complexities involved in the evolution of redevelopment in Mumbai, it will not be an easy road ahead. The Maharashtra government, however, is making all efforts to meet its goal of constructing 35 lakh houses over the next five years, backed by its promised investment of Rs 70,000 crore. In the process, Mumbai will hopefully see a transformation, one neighbourhood at a time.
Here's what some of the leading developers in Mumbai have to say about cluster redevelopment in Mumbai.
DEVELOPER SPEAK
Tapas Chaturvedi, Managing Director, Shreepati Group:
- Mr. Tapas Chaturvedi
“The Deputy Chief Minister’s encouragement for residents to embrace the cluster redevelopment model reinforces what we at Shreepati Group have long believed—cluster redevelopment is the most effective and future-ready approach to rebuilding Mumbai. As pioneers of cluster redevelopment in South Mumbai, we have witnessed firsthand how this model transforms not just buildings, but entire neighbourhoods, bringing safer structures, modern amenities, organised infrastructure, and a renewed sense of community. Unlike fragmented redevelopment, cluster projects allow for scientific planning, wider roads, enhanced open spaces, and improved public utilities that truly uplift the quality of life for citizens. We wholeheartedly support the government’s push and urge societies to view this model as an opportunity to secure a stronger, more sustainable future for their families and generations ahead. Shreepati Group remains committed to partnering in Mumbai’s transformation with expertise, integrity, and a legacy of delivering impactful redevelopment.”
Dinesh Kuwadia, Founder and Chairman, Happy Home Group of Companies:
- Mr. Dinesh Kuwadia
The feasibility of cluster schemes in the city and suburbs is notably higher compared to other redevelopment schemes. And the lifestyle can be enhanced with gated community living.
However, the current bottleneck concerning MHADA's share of area has become a non-starter in many cases, particularly due to the absence of an exchange mechanism, which is otherwise permitted in other redevelopment models. Moreover, the requirement of providing higher FSI and a higher area of a physical Recreation Ground (RG) on Mother Earth—unlike in other redevelopment schemes—results in uneconomical building heights to consume the permissible FSI, thereby significantly reducing overall feasibility. Wish that Mumbai grows with more clusters and developments on the lines of Singapore.”
Ashok Mohanani, Chairman, Ekta World:
- Mr. Ashok Mohanani
“The Deputy Chief Minister’s call to support the cluster redevelopment model is a timely and progressive step towards transforming Mumbai’s urban fabric. Cluster redevelopment not only ensures holistic planning and infrastructure upgradation, but also addresses long-standing challenges of congestion, safety, and sustainability that isolated redevelopment often cannot. For developers, it opens the door to create integrated communities with better amenities, open spaces, and resilient infrastructure. At Ekta World, we firmly believe that collaboration between the government, developers, and residents is key to realising this vision. With clear policies, faster approvals, and public participation, Mumbai can set a benchmark in urban renewal that balances growth with liveability. We welcome this initiative and remain committed to contributing our expertise to shape a modern, inclusive, and world-class city.”
Sundeep Jagasia, Managing Director, Shree Krishna Group:
- Mr. Sundeep Jagasia
“Eknath Shinde’s call to support cluster redevelopment highlights a clear and practical vision: safer, modern, more spacious homes that genuinely improve people’s day-to-day lives. With better roads, drainage, green spaces, and sustainable features, these projects don’t just upgrade buildings—they boost long-term value and help create stronger, future-ready communities. Yes, the process can be slow and complicated, with approvals and coordination taking time, but the payoff is absolutely worth it. In the end, cluster redevelopment is a real chance to refresh entire neighborhoods and give residents improved living conditions, better infrastructure, and a safer, more vibrant place to call home for generations.”