MUMBAI: The Maharashtra Housing Area Development Authority (Mhada) is slated to formally take over the redevelopment of the Siddharth Nagar (Patra) chawl in Goregaon West.

The state housing department issued a government resolution (GR) directing Mhada to complete the stalled redevelopment and hand over tenements to the 672 tenants and the 306 citizens who had won allotments through the authority’s lottery system. The tenants will be paid rent arrears too.

The GR also directs Mhada to utilize all legal means to ensure it gets its lawful share of the redeveloped area. Siddharth Nagar is spread over 47 acres and the developer, Guruashish, allegedly sold parcels of the land to nine other developers without Mhada’s approval. The matter went to court after the comptroller and auditor general (CAG) pointed out the discrepancies in counting the actual area. It is currently before the Bombay high court and the National Company Law Appellate Tribunal (NCLAT).

The cabinet approved the recommendation of the Johny Joseph Committee, allowing Mhada to sell flats at market rates as a one-time concession to recover the redevelopment cost. Mhada will also be allowed a floor space index of 4 on the area that has not been developed.

The housing department has issued another GR mandating Mhada to obtain state approval before issuing a letter of intent for redevelopment to a developer for any of its layouts. “Often the residents have to bear the brunt as the project gets stalled for years. Hence, to ensure public good, Mhada will need to submit a detailed proposal to the government, obtain approval and only then issue the NOC and approvals for the project,” it states.