Tender

The solution wasn't to abandon the housing stock rather it was to create a framework that made redeveloping it financially viable for societies, developers, and MHADA alike. That framework first appeared as Regulation 33(5) under the Development Control Rules of 1991, when Mumbai's planning regulations were formally codified. At that time, the regulation provided an FSI of 2.5 on the entire layout for MHADA housing scheme redevelopment.

WHO IT APPLIES TO

• MHADA building fresh on its own land
• Co-operative society or MHADA lessee redeveloping themselves

• MHADA self-redeveloping or joint redevelopment

Under this model, MHADA either undertakes redevelopment itself or partners with a developer for project execution. The distribution of benefits follows separate sharing ratios prescribed under the regulations. This approach is increasingly adopted for larger layouts where MHADA seeks greater control over planning, implementation, and project outcomes.

THE REGULATION DECODED

The FSI ceiling.

FSI (Floor Space Index) is the ratio of total built-up area to plot area. It is the ceiling on how much construction is allowed. Under Reg 33(5), two ceilings apply depending on your plot.

Within this FSI, the regulation carves out two major portions; carpet area members are entitled to followed by either sharing the balance housing stock between society and MHADA by including incentive FSI computation or paying premium for the balance.

REHABILITATION ENTITLEMENT

What is each member legally entitled to?

The minimum flat size each member must receive in the new building. No developer can legally offer less than this. It is calculated in two steps.

1. Basic entitlement

The entitlement of rehabilitation area for an existing residential tenement shall be equal to their existing carpet area plus 35% thereof, subject to minimum usable (MoFA) carpet area of 35 sq.m.

• The new flat carpet area cannot exceed the MIG category maximum (120 sq.m) without separate approval
• Commercial or amenity occupants in the scheme get their existing carpet area + 20%

2. Additional Carpet area (Table A)

If the plot being redeveloped is larger than 4,000 sq.m, members receive an additional percentage on top of the Step 1 figure. This extra entitlement scales up with plot size.

Example:

For 3.00 FSI

Option A: Sharing Housing Stock With MHADA

After rehabilitation area is set aside, two further calculations follow — and both are governed by the same ratio: LR/RC

Incentive FSI is additional FSI granted over and above the rehabilitation area. Its quantum is a percentage of the total rehabilitation area, determined by the LR/RC ratio.

Societies on cheaper land get a larger incentive FSI because the developer has less room to profit from sale flats. Societies on expensive land get less, because the developer's profit margin on sale flats is already higher.

After the rehabilitation entitlement and incentive FSI are accounted for, whatever FSI remains is called the balance FSI. This is split between your co-operative society (which the developer sells as sale flats) and MHADA — which receives its share as built-up area, handed over free of cost.

Higher land value means MHADA takes a larger cut of the surplus.

Balance FSI = Total FSI - (Rehab area + Incentive FSI)

Option B: Premium Payment

MHADA may agree to waive its BUA share entirely and instead allow the developer to construct additional BUA (up to 3.00 FSI total) in exchange for a cash premium. This premium is a percentage of the prevailing ASR land rate and varies by LR/RC ratio and the income category of units being built as follows:

Under Clause 2.2, when MHADA undertakes self or joint redevelopment, the rehab entitlement is +15% over and above the Clause 2.1 calculation — an additional uplift that applies specifically on this track.

For 4.00 FSI
Plots ≥4,000 sq.m on 18m+ road

If the plot is 4,000 sq.m or larger and fronts a road that is 18 m or more wide, an additional 1.0 FSI beyond the standard 3.0 ceiling, taking the total to 4.0 can be applied. This requires prior government approval and is a separate decision from the balance FSI sharing above.
For this extra 1.0 FSI specifically, your society and developer choose one of two options:

Land Rate ÷ ASR Rate of Construction 
both taken from the year your redevelopment project is approved by the Competent Authority. Where multiple land rates apply to different parts of the plot, a weighted average is used.

OPEN SPACE REQUIREMENTS

• Relaxation premium = 25% of normal premium or 6.25% of ASR land rate, whichever is higher. Applies to rehab and composite buildings only (rehab component ≥ 50%).
• Open space minimums vary by building height: