The Maharashtra Housing Policy 2025 has proposed the creation of a separate RERA-like law to regulate redevelopment projects, a move that has sparked mixed reactions among homebuyers, developers, and legal experts.
Currently, the Real Estate (Regulation and Development) Act, 2016 (RERA) does not cover redevelopment projects, leaving many homeowners vulnerable when projects are stalled or delayed. Residents are often forced to live in transit accommodations or depend on monthly rent from developers—support that sometimes stops midway.
The new policy argues that a separate law is necessary since redevelopment complaints are not addressed by MahaRERA. However, several real estate experts believe that instead of creating a parallel law, the state should collaborate with the Centre to amend the RERA Act and widen its scope to include redevelopment.
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A former MahaRERA member explained that multiple laws could complicate matters for homebuyers and increase compliance burdens for developers, who already register the sale components of redevelopment projects under RERA. “The government should focus on expanding RERA’s ambit rather than creating confusion with overlapping laws,” the member said.
Echoing this view, Keval Valambhia, COO of the Maharashtra Chamber of Housing Industry (MCHI), said, “The purpose of RERA was to protect homebuyers. If the state wants to address grievances in redevelopment projects, it should redefine RERA’s scope instead of introducing a new law.”
Meanwhile, the matter is also being debated in the Bombay High Court. The case of Kishor Shamji Thakkar & Others vs. Sumer Builders Pvt. Ltd. will determine whether RERA provisions extend to redevelopment projects. Legal experts believe that the court’s decision could bring much-needed clarity on whether Maharashtra should legislate separately or strengthen the existing framework.