Keystone Realtors to Redevelop 25 Buildings in Mumbai’s GTB Nagar in Partnership with MHADA

Keystone Realtors Ltd, part of the Rustomjee Group, has received approval to undertake the redevelopment of 25 buildings in GTB Nagar, located in the Sion Koliwada area of Mumbai. The project, to be executed in collaboration with the Maharashtra Housing and Area Development Authority (MHADA), has a projected gross development value (GDV) of ₹4,521 crore.

The redevelopment will cover a total land area of 11.19 acres, equivalent to 45,308 square metres, and will provide housing for approximately 1,200 existing residents. In addition, the project is expected to generate 20.7 lakh square feet of saleable area for Keystone, alongside housing stock to be handed over to MHADA.

The buildings proposed for redevelopment were originally constructed in 1958 to accommodate migrants who arrived in Mumbai following India’s independence. In 2020, the Brihanmumbai Municipal Corporation declared these structures unsafe for habitation. Following their demolition, the affected residents had to arrange alternative housing independently.

In response to appeals from the tenant societies, the state government approved the redevelopment under the authority of MHADA, despite the land in question being privately owned. The decision was formalised through a resolution passed on February 23, 2024, following a cabinet meeting held on February 14. MHADA was designated as the special planning authority under Regulation 33(9) of the Development Control and Promotion Regulations for Greater Mumbai.

The project will involve the construction of new housing units for all 1,200 eligible society members. As per MHADA’s proposal, each beneficiary will receive a housing unit measuring 635 square feet at no cost. In return, MHADA will receive 25,700 square metres of built-up space as part of its housing stock contribution.

Eligible tenants will be paid a rent allowance of ₹20,000 per month until the redevelopment is completed. MHADA has also committed to covering maintenance charges for a period of five years post-completion.

Legal disputes related to the ownership and development of this land parcel had reached both the Bombay High Court and the Supreme Court. MHADA stated that the Supreme Court’s ruling in this case has helped establish a precedent, enabling it to undertake similar redevelopment projects involving privately held land in the future.

Keystone Realtors Chairman and Managing Director Boman Irani acknowledged the project's scale and complexity. He noted that the initiative, which impacts over 1,400 families—including 1,200 society members and approximately 200 slum residents—will be one of the largest redevelopment exercises undertaken in the city. Irani expressed confidence in the company’s ability to carry out the project in collaboration with MHADA.

The GTB Nagar redevelopment forms part of a broader cluster of redevelopment initiatives being pursued across Mumbai under various planning frameworks. MHADA, through its Building Repairs and Reconstruction Board, has also floated tenders for the cluster redevelopment of Kamathipura in South Mumbai. That project, spread across 34 acres, involves the redevelopment of 943 buildings and is expected to affect more than 8,000 tenants, both residential and commercial.

In parallel, large-scale redevelopment projects such as the Dharavi slum rehabilitation (led by the Adani Group), the BDD Chawl redevelopment in Worli (by a consortium led by Tata Projects), and the Bharat Nagar and Motilal Nagar redevelopments (undertaken by developers including Omkar, Forum Homes, HDIL, and Adani Group) are also underway. These projects collectively represent a significant transformation in Mumbai’s housing stock and urban landscape.

The GTB Nagar redevelopment offers significant development potential due to the availability of 20.7 lakh sq ft of saleable area. Keystone’s access to such a large contiguous land parcel in a well-connected central Mumbai location is expected to offer viable residential and possibly mixed-use real estate options.

The minimum floor space index (FSI) available for the project has been pegged at 4.5, including fungible components, under the redevelopment norms applicable through MHADA. This FSI will help facilitate optimal utilisation of land while also meeting the housing needs of existing occupants.

As redevelopment gains momentum across Mumbai, the GTB Nagar project stands out due to its combination of scale, legal complexity, and historical significance. Its implementation through MHADA’s planning authority and Regulation 33(9) underscores the growing role of public-private partnerships in addressing the city's housing and infrastructure needs.

The state government, through MHADA and its allied agencies, continues to explore similar redevelopment opportunities in other ageing residential clusters where existing buildings are structurally weak or non-compliant with modern safety norms.