The Maharashtra Housing and Area Development Authority (MHADA) has moved ahead with the redevelopment of the Abhyudaya Nagar colony in South Mumbai by issuing a letter of acceptance (LoA) to a consortium of developers, as per The Economic Times report.
The project, located in Kalachowki, covers around 33 acres and is expected to redevelop ageing residential buildings under the Construction and Development (C&D) model. The initiative forms part of broader efforts to upgrade older housing colonies across Mumbai.
The redevelopment contract has been awarded to a consortium comprising M.G.N. Agro Properties, N.N.P. Buildcon and Honest Shelters. The consortium will undertake the redevelopment of the existing MHADA colony under a developer-appointed framework.
The project is being implemented following approvals granted by the Maharashtra government and MHADA under Development Control Regulation (DCR) 33(5).
The Abhyudaya Nagar colony consists of 48 buildings containing a total of 3,410 tenements. Among these, 3,335 are residential units while 75 are non-residential premises.
Most residents currently occupy homes measuring approximately 210 sq ft carpet area. Under the redevelopment plan, eligible residents will receive rehabilitation flats with a carpet area of 641 sq ft at no additional cost.
The Maharashtra cabinet approved the redevelopment proposal on February 27, 2024. This was followed by a government resolution issued by the housing department in March 2026, enabling MHADA to begin the developer selection process through tenders.
According to MHADA, the initial tender process did not receive bids despite multiple deadline extensions. Authorities later revised certain conditions in the tender document after consultations with government officials, local representatives and resident associations.
A review meeting chaired by Chief Minister Devendra Fadnavis in April 2025 led to modifications aimed at improving participation in the bidding process.
The revised redevelopment terms included several additional benefits for residents. These include:
These revisions were introduced as part of efforts to address resident concerns and improve the project structure.
MHADA stated that redevelopment of the ageing buildings in Abhyudaya Nagar had been pending for several years. The project is part of ongoing urban renewal efforts targeting older housing colonies in Mumbai that require structural upgrades and improved residential infrastructure.
Large-scale cluster redevelopment projects are increasingly being considered across the city to improve housing conditions and optimise land use in densely populated areas.
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The issuance of the letter of acceptance marks a significant procedural step in the redevelopment of the Abhyudaya Nagar colony. With the developer consortium now selected, the project moves closer to execution, offering upgraded housing and additional rehabilitation benefits to existing residents in the South Mumbai locality.
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Published on: May 8, 2026, 3:40 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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