Supreme Court Upholds Redevelopment Of Mumbai’s Motilal Nagar Via MHADA C&DA Model

In a major win for the Maharashtra Housing And Development Authority (MHADA), the Supreme Court has upheld the housing agency’s decision to redevelop Mumbai’s Motilal Nagar by way of construction and development agency (C&DA) model, reports said on Monday.

A division bench of Justice Vikram Nath and Justice Sandeep Mehta reportedly dismissed a special leave petition filed by resident associations Jankalyankari Samiti headed by Madhavi Rane, Motilal Rahivasi Vikas Sangh and Gaurav Rane, upholding Bombay High Court’s March 2025 order in favour a holistic redevelopment of 143 acres of Motilal Nagar I, II and III via C&DA.

While the Solicitor General of India, Tushar Mehta, argued in favour of MHADA, senior counsel Siddharth Bhatnagar appeared for the petitioners.

The Solicitor General reportedly pointed out that the project has been given a ‘special status’ by the state government and the land was owned by MHADA.

The bench also termed fair the state government’s decision to give 1,600 sq feet built up area in lieu of about 230 sq feet, much higher than the existing entitlement as per 33 (5) of Development Control and Promotion Regulations (DCPR) 2034, as per the reports.

On Friday, a division bench of Chief Justice Alok Aradhe and Justice Bharti Dangre of the Bombay High Court had quashed a review petition by Motilal Nagar Vikas Samiti, led by Nilesh Prabhu and upheld the redevelopment of Motilal Nagar in Goregoan West, Mumbai via C&DA route.

Earlier this month, MHADA signed a C&DA agreement with Estatevue Private Developers, a unit of Adani Realty for implementation of the Motilal Nagar redevelopment project in Goregaon (W), Mumbai. Around 3,700 residents of this 143 acre parcel of land will be rehoused in "ultra modern" apartments measuring 1,600 sq ft built-up area while commercial spaces will have new 987 sq feet establishments.

MHADA retains full control over the project, including ownership of the land. It has chosen a private agency due to its own financial and technical limitations in handling such a large-scale redevelopment.

The Maharashtra government has given it a "special project" status and it is estimated that the redevelopment cost is around Rs 36,000 crore, and the rehabilitation period is seven years from the project's commencement date.

This project aims to eliminate illegal construction and rehabilitate 3,372 residential units, 328 eligible commercial units and 1,600 eligible tenements from a nearby slum. The redevelopment will solve the area’s major issues like flooding and waterlogging, improving living conditions for residents.

The C&DA bears the full cost of the project and must provide all rehabilitated housing, including commercial spaces and slum tenements, MHADA premises, and necessary infrastructure and amenities to MHADA, free of cost.

MHADA, via the C&DA, aims to transform Motilal Nagar into a modern residential hub, built around the concept of a “15-minute city”—a model that promises access to transport, healthcare, education, shopping, and entertainment within a 15-minute radius keeping its green cover intact. These also include large open spaces, gardens, pedestrian plazas and community centres.

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