The Bombay High Court upheld the Maharashtra government's policy for cluster redevelopment of MHADA layouts at Adarsh Nagar, Worli, and Bandra Reclamation. A bench of Justices M.S. Karnik and S.M. Modak dismissed petitions challenging integrated redevelopment schemes, holding that larger public interest in planned urban development outweighs individual societies' claims for separate redevelopment.

Petitioners challenged Government Resolutions dated April 25, 2025, and December 15, 2025, arguing housing societies were compelled to join cluster redevelopment without flat owners' consent, affecting property and redevelopment rights. The court rejected these challenges, holding that MHADA, as planning authority and superior lessor, is empowered to regulate redevelopment in accordance with applicable laws.

Adarsh Nagar layout comprises 34.33 acres in Worli; Bandra Reclamation layout spans 98.27 acres. Both contain several buildings constructed decades ago. The redevelopment scheme covers nearly 5,000 tenements across MHADA layouts. The MHADA colonies were developed between 1950s and 1960s to provide affordable housing to middle- and lower-income groups.

The court noted that integrated redevelopment ensures proper planning of infrastructure including open spaces, internal roads, parking, drainage, water supply and civic amenities across entire layouts. Allowing different developers to independently redevelop individual buildings would result in haphazard and unplanned growth, adversely affecting infrastructure planning. The court rejected arguments that MHADA's conversion of its share into Floor Space Index (FSI) premium under Regulation 33(5) deprived it of entitlements.

Petitioners also contended that residents of sea-facing buildings in Adarsh Nagar could be relocated elsewhere, depriving them of existing location and associated benefits. After petitioners sought protection to approach the Supreme Court, the government assured the court that work orders would not be issued for four weeks.

Adani Properties emerged as highest bidder for MHADA cluster redevelopment projects at Adarsh Nagar in Worli and Bandra Reclamation. A consortium of Hanura Realty (JSW Steel subsidiary), Chandak Realtors, Premsagar Infra Realty and Vantier Realty won the S.V.P. Nagar project in Andheri West.

MHADA's Mumbai Housing and Area Development Board issued tenders on April 8, 2026. Bid submission deadline was May 18, 2026. Technical evaluation completed before financial bids opened May 27, 2026.

Project details:

• S.V.P. Nagar, Andheri West: 73.89 acres
• Bandra Reclamation: 98.27 acres
• Adarsh Nagar, Worli: 34.33 acres

Bid acceptance proposals will go to high-powered committee then state government for final approval. Under redevelopment, eligible residents receive transit rent during construction period and corpus fund for maintenance.

State cabinet approved MHADA redevelopment of Bandra Reclamation and Adarsh Nagar, Worli as cluster projects with MHADA as nodal agency. MHADA will appoint private developer; societies cannot choose own redevelopment path. Developer must be ratified by 51% of tenants.

Bandra Reclamation: 2,12,042 sq ft plot, 52 buildings, 1,688 flats (322–825 sq ft). Residents get 5,04,515 sq m additional built-up area; MHADA gets 1,00,190 sq m plus ₹4,266.14 cr premium. Sea views possible.

Adarsh Nagar, Worli: Behind Fire Station on Annie Besant Road, 68,034 sq m plot, 58 buildings, 863 flats (270–860 sq ft). Residents get 89,557 sq m additional built-up area; MHADA gets 14,632 sq m plus ₹680.02 cr premium.

Both projects: FSI 4, with 1 FSI for new housing stock. Developer must provide alternative accommodation, rentals, corpus fund, and basic amenities. Government prefers holistic development over piecemeal to prevent less-sought plots remaining undeveloped.

The state cabinet approved redevelopment of cooperative housing societies under MHADA in two locations: Adarsh Nagar in Worli and Bandra Reclamation. The cabinet approved appointment of a Construction and Development Agency through MHADA for redevelopment of some cooperative housing societies in both layouts, excluding plots for which permission was not granted. Floor space index (FSI) of four approved for redevelopment. MHADA will receive housing stock equivalent to one FSI in both layouts.

MHADA selected Adani Properties Private Limited as the highest bidder for Adarsh Nagar in Worli and Bandra Reclamation; a consortium led by JSW Steel won SVP Nagar in Andheri West. The consortium comprises Hanura Realty, a JSW Steel subsidiary, Chandak Realtors, Premsagar Infra Realty and Vantier Realty.

The three cluster redevelopment areas total 206.49 acres: SVP Nagar, 73.89 acres; Bandra Reclamation, 98.27 acres; and Adarsh Nagar, 34.33 acres. MHADA floated bids on April 8 and opened technical submissions on May 20. Bid approvals will go to a high-powered committee, then to the state government for final approval. Resident groups and housing societies challenging the tender in the Bombay High Court are due for a hearing on June 9. Eligible residents will receive transit rent during redevelopment and a maintenance corpus.

Lodha Developers and JSW Realty & Infrastructure also bid for Bandra Reclamation and Adarsh Nagar. SVP Nagar bidders included Reliance 4IR Realty Development, Adani Properties and Hanura Realty.