MHADA issues letter of acceptance to consortium for 33-acre Abhyudaya Nagar redevelopment

The Maharashtra Housing and Area Development Authority (MHADA) has issued a letter of acceptance (LoA) to a consortium comprising M.G.N. Agro Properties, N.N.P. Buildcon, and Honest Shelters for the cluster redevelopment of the Abhyudaya Nagar colony spread over 33 acres in South Mumbai’s Kalachowki, marking a key step in one of the city’s large-scale public housing renewal projects.

Under the redevelopment plan, residents currently living in 210 sq ft carpet area tenements will receive free rehabilitation flats measuring 641 sq ft carpet area each.

The project will be executed under the Construction and Development (C&D) model through a developer-appointed framework.


The redevelopment proposal for the old MHADA colony at Abhyudaya Nagar had earlier received approval from the Maharashtra cabinet on February 27, 2024, under Development Control Regulation (DCR) 33(5). Subsequently, the housing department issued a government resolution on March 6, 2026, after which MHADA initiated the process for appointing a developer through a tender.

The Abhyudaya Nagar colony comprises 48 buildings with 3,410 tenements of around 210 sq ft each. Of these, 3,335 are residential units while 75 are non-residential premises.

MHADA said the redevelopment of the ageing buildings had remained pending for several years before the Mumbai Board was tasked with implementing the project under the C&D framework.

The authority said the initial tender process did not receive responses despite multiple extensions. According to MHADA, several conditions had been incorporated into the tender document based on suggestions made by then deputy chief minister and current chief minister Devendra Fadnavis.

Following the lack of response, a joint meeting chaired by Fadnavis was held on April 11, 2025, with local public representatives, representatives of the Abhyudaya Nagar Federation, MHADA officials and government officers. After discussions, the tender conditions were revised and the process was restarted.

The revised terms included one parking space for each tenement holder, a corpus fund of Rs 5 lakh for every resident and monthly rent compensation of Rs 25,000 per tenement holder until project completion.