Old Cessed Buildings in South Mumbai: What Buyers, Owners and Tenants Should Know

Much of South Mumbai's older housing stock is made up of cessed buildings with protected tenants. How they work, why redevelopment is complicated, and what to check before buying into one.

New residential projects under construction in South Mumbai

Walk through Girgaon, Grant Road, Byculla or Kalbadevi and you'll see old buildings that look much the same as they did decades ago. Many are cessed buildings: old tenanted buildings in the island city on which a repair cess is levied, with repairs and reconstruction overseen by MHADA's Mumbai Building Repair and Reconstruction Board.

The short answer

Thousands of cessed buildings remain in the island city, many with long-standing tenants under the rent control law.
Tenants in these buildings often pay very low controlled rents, and many hold tenancy on a pagdi basis.
Redevelopment usually happens under regulation 33(7) of DCPR 2034, which gives incentive floor space for rehousing tenants.
The MHADA Act also has provisions allowing redevelopment of dilapidated cessed buildings when owners don't act.

In a cessed building, the tenants' rights often matter more to the project than the landlord's title.

Before buying into a cessed building or its redevelopment

Check the tenancy status of the unit: owner-occupied, tenanted or pagdi.
Check tenant consent for any redevelopment. Disputes are common and can delay projects for years.
Check MHADA's role and the approvals for the redevelopment scheme.
Check whether the building is on a dangerous list. See BMC's C1 list.
Use a lawyer who knows rent control and cessed building law.

For tenants in cessed buildings

Keep rent receipts and tenancy documents safe. They prove your right to a rehab flat.
Read the redevelopment agreement carefully, especially the rehab area, temporary rent and timelines.
Ask questions as a group. Tenants' associations often get better terms.

Frequently asked questions

What is a cessed building in Mumbai?

An old, mostly tenanted building in the island city on which a repair cess is collected, with repairs and reconstruction overseen by MHADA's repair board.

Can a cessed building be redeveloped?

Yes, usually under regulation 33(7) of DCPR 2034, with tenants getting rehab homes.

Sources

Maharashtra Housing and Area Development Act, 1976 (cessed building provisions)
Development Control and Promotion Regulations for Greater Mumbai, 2034, regulation 33(7)

Related reading

General information, not legal advice.

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