Dharavi Redevelopment Authority Defaults on ₹25 Crore Rent Payment

•MHADA Demands Dues

• Dues Mount on DRA

Unmesh Gujarathi

Sprouts News Exclusive

The Dharavi Redevelopment Authority (DRA) has recently shifted its operations to a new office in King’s Circle. However, it has left behind an unpaid rent of ₹25 crore for its previous premises at the MHADA headquarters. Despite two official notices from MHADA, the DRA has not responded, raising concerns about the recovery of the pending dues. The Maharashtra government had earlier established the Dharavi Redevelopment Project Authority specifically to oversee the vast Dharavi slum rehabilitation initiative.

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For several years, the DRA operated from Room No. 619 on the fifth floor of the MHADA headquarters. The spacious 7,000 sq. ft. office was leased at a monthly rate of ₹265 per sq. ft., accumulating significant dues over time. Without settling these arrears, the DRA moved to its new location just before Diwali. According to Sprouts News sources, the total outstanding amount, including interest, has now exceeded ₹25.5 crore.

Data compiled until September reveals that the overdue rent continues to accrue interest, further inflating the liability. Despite MHADA issuing two separate notices demanding payment, the DRA has failed to provide any formal response. An official from MHADA confirmed that the matter is now under review and further legal or administrative action is being considered.

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The situation highlights a broader concern in Mumbai’s urban development landscape, particularly regarding financial discipline within redevelopment projects. Authorities tasked with critical housing society redevelopment initiatives must ensure transparency and timely obligations. Instances like these could undermine public trust in major urban renewal programs.

As Mumbai’s redevelopment sector navigates complex policy frameworks and rising real estate demands, ensuring accountability from government-led bodies becomes crucial. The outcome of MHADA’s next steps against the DRA will set an important precedent for other housing societies and redevelopment projects across the city.