Nagpur: In a major relief for residents awaiting redevelopment of ageing buildings, the Maharashtra government has made it mandatory for builders to deposit three years’ rent in advance into the bank accounts of housing societies before asking occupants to vacate their homes.
The new rule, recently announced by Deputy Chief Minister and Urban Development Minister Eknath Shinde, aims to prevent the growing trend of developers forcing residents to move out and then abandoning projects midway due to financial or approval-related hurdles.
Rule Aims to End Delays in Redevelopment Projects
Under the new directive, developers must pay the full three-year rent before demolition begins, ensuring that families displaced by redevelopment have financial security even if construction is delayed.
The measure comes as a significant relief to residents in areas such as Dharampeth, Laxmi Nagar, Gandhibagh, and Lakadganj, where several Slum Rehabilitation Authority (SRA) and other redevelopment projects have been stalled for years.
Safeguard for Nagpur’s Residents Living in Old Buildings
In Nagpur, multiple redevelopment schemes have faced long delays, leaving residents—particularly in older NIT layouts and central wards—struggling in temporary accommodations far longer than promised.
According to Ruturaj Jadhav, Assistant Director of the Town Planning Department, Nagpur Municipal Corporation (NMC), the new policy could bring much-needed discipline to the sector.
“In localities like Dharampeth and Laxmi Nagar, many residents have already vacated their homes and are still waiting for construction to even start,” Jadhav said.
“Requiring builders to deposit three years’ rent in advance will ensure better financial planning and prevent half-finished projects. But for the rule to be effective, NMC and the town planning department must actively monitor payments and progress.”
Closer Monitoring and Accountability Planned
Officials stated that the rule will apply to all urban redevelopment projects, including SRA, cluster redevelopment, and public-private housing schemes. Builders will have to submit proof of rent payment to NMC before securing final demolition or construction permissions.
Jadhav also suggested forming a dedicated redevelopment monitoring cell under the civic body to track rent deposits, verify on-site progress, and take swift action if developers default.
Mixed Response from Real Estate Experts
While the reform has been widely welcomed by residents and housing welfare associations, experts note that smaller developers may face difficulty in arranging large upfront deposits.
Nonetheless, officials believe the new rule marks a turning point in Maharashtra’s redevelopment framework, ensuring that residents are not left homeless or financially burdened due to stalled construction projects.
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