The Maharashtra Housing and Area Development Authority (MHADA) has granted a letter of acceptance (LoA) to a consortium made up of M.G.N. Agro Properties, N.N.P. Buildcon, and Honest Shelters for the large-scale redevelopment of the Abhyudaya Nagar colony. This area spans 33 acres in Kalachowki, South Mumbai, and signifies a significant advancement in the city’s public housing renewal efforts.
As part of the redevelopment initiative, residents currently residing in 210 sq ft tenements will receive new flats of 641 sq ft carpet area at no cost.
This project will follow a Construction and Development (C&D) model managed by an appointed developer.
Previously, the Maharashtra cabinet had approved the redevelopment proposal for the aging MHADA colony at Abhyudaya Nagar on February 27, 2024, under Development Control Regulation (DCR) 33(5). Following this, the housing department issued a government resolution on March 6, 2026, prompting MHADA to initiate developer selection through a tender process.
The Abhyudaya Nagar colony consists of 48 buildings housing 3,410 tenements, each approximately 210 sq ft in size. Of these, 3,335 are residences while 75 are non-residential units.
MHADA noted that the redevelopment of these aging structures had been stalled for several years until the Mumbai Board was assigned to implement the project under the C&D framework.
The authority indicated that the initial tender received no responses despite several extensions. MHADA reported that numerous conditions were included in the tender document, reflecting suggestions from then Deputy Chief Minister and current Chief Minister Devendra Fadnavis.
In response to the lack of interest, a joint meeting led by Fadnavis was convened on April 11, 2025, involving local public representatives, members of the Abhyudaya Nagar Federation, and relevant MHADA and government officials. Following discussions, the tender conditions were revised, and the process was recommenced.
Revised terms now include one parking space for each tenement holder, a corpus fund of Rs 5 lakh for residents, and monthly rent compensation of Rs 25,000 per tenement holder until project completion.
