Good news for Mumbai’s cessed building residents. The Maharashtra Housing and Area Development Authority (MHADA) has decided to slash premium charges for additional areas in these old, dilapidated structures. This move could save lakhs for flat owners who were earlier burdened with steep fees for extra space.
What is the Change?
Earlier, if your flat in a cessed building had more area than officially allotted, you had to pay a hefty premium to MHADA to legalise it. Now, the authority has reduced these charges significantly by up to 50% in some cases.
For example, if you had 100 sq ft of extra space, earlier you might have paid ₹10 lakh to regularise it. Now, that cost could drop to ₹5 lakh or even less, depending on the building’s location and type.
Why does this matter?
Mumbai’s cessed buildings are old, mostly pre 1960 constructions, and many are in dire need of repairs. Residents pay a yearly “cess” (a kind of tax) to MHADA for maintenance. But over the years, many flats have expanded, sometimes legally, sometimes not.
Regularising this extra space was expensive, forcing many to avoid it. Now, with lower premiums, more people can afford to get their additional area legalised. This means:
Fewer legal hassles: No fear of MHADA penalties for unauthorised extensions.
Better redevelopment chances: Legalised flats have smoother redevelopment prospects.
Increased property value:Proper documentation boosts resale prices.
Who benefits?
This decision impacts thousands living in South Mumbai’s Girgaum, Parel, Dadar, and other areas where cessed buildings are common. Many middle-class families, stuck in crumbling structures, couldn’t afford the earlier premiums. Now, they have a fairer shot at securing their homes.
What is next?
MHADA’s move is part of a larger push to ease housing regulations in Mumbai. The authority also plans to speed up approvals for redevelopment, which has been painfully slow for years.
If you own a flat in a cessed building, this is the time to check your paperwork. Get your extra area measured, apply for regularisation, and save money before any policy changes again.
Mumbai’s real estate is a maze of rules, but this decision is a rare win for common homeowners. Lower premiums mean fewer headaches and more security for those living in the city’s ageing buildings.
Now, if only getting a new house in Mumbai became this easy!
