In a major relief for tenants of unsafe properties, the Maharashtra government has announced an increase in cessed building rent support from ₹20,000 to ₹30,000 per month. This move targets occupants of C-1 category cessed buildings, considered highly dangerous and unfit for living.
These buildings, mostly located in South Mumbai, were recently flagged by MHADA in its pre-monsoon survey. With the threat of collapse looming, this decision is not only timely but also essential for tenant safety.
Why the Increase in Cessed Building Rent Was Needed
Rising Mumbai Rents Made ₹20,000 Insufficient
The earlier rent support of ₹20,000 was barely enough to afford a temporary flat in Mumbai’s real estate market. Increasing the cessed building rent assistance to ₹30,000 makes it possible for families to shift into safer and decent rental accommodation.
Transit Housing Stock is Limited
Currently, MHADA has only 786 transit flats, while over 2,400 families are in need of alternative housing. This shortfall forced the government to adopt a rental support model instead of relying solely on transit homes.
Implementation of New Cessed Building Rent Policy
Direct Rent Payment Model
The state will provide ₹30,000 monthly directly to eligible tenants until redevelopment begins or suitable accommodation is arranged.
Developer Accountability
To ensure timely redevelopment, the government has announced that if developers fail to begin construction within three years of receiving approvals under DCR 33(7), their No Objection Certificates (NOCs) will be cancelled.
Implications for Tenants and Developers
For Tenants:
- Greater flexibility in choosing rental homes.
- Better safety and dignity during the wait for redevelopment.
- Reduced dependency on MHADA’s limited transit homes.
For Developers:
- Pressure to start redevelopment promptly or risk losing NOCs.
- Encouragement for stalled projects to resume with urgency.
Long-Term Vision Beyond Cessed Building Rent Support
While the increased cessed building rent relief is a welcome move, it must be paired with stronger redevelopment frameworks. The real solution lies in rebuilding these aging structures before disasters strike.
Additionally, a digital registry of cessed buildings and redevelopment status updates could help monitor the progress of each project and ensure transparency for tenants.
Final Thoughts on the Cessed Building Rent Hike
The ₹30,000 rent support is not just a number—it’s a lifeline for tenants living in fear. With Mumbai’s housing crisis and monsoons colliding every year, the government’s move is a significant step toward prioritizing people over paperwork.
Yet, timely implementation, streamlined fund transfers, and strict developer checks will determine its true success.
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