Dharavi Redevelopment 2026: 118 Acres in Malad Handed Over for Resident Rehabilitation

The long-awaited Dharavi Redevelopment Project (DRP) has taken a major step forward. The Maharashtra Government has officially handed over 118 acres of land in Mukteshwar, Malad-Malvani (Mumbai) for the rehabilitation of Dharavi residents.

This move is expected to accelerate one of the largest urban redevelopment projects in the world, aimed at transforming Asia’s biggest slum cluster into a planned urban township.

Why the 118-Acre Malad Land Matters

The newly transferred land parcel in Malad-Malvani will primarily be used to rehabilitate residents who are not eligible for in-situ housing within Dharavi.

Key Highlights:

• Location: Mukteshwar, Malad-Malvani, Mumbai

• Land Size: 118 acres (out of 140 acres earmarked)

• Estimated Value: ₹540 crore

• Premium Paid: ₹135 crore towards development rights

• Pending: 22 acres remain under litigation

The land ownership will remain with the Slum Rehabilitation Authority (SRA), while development rights are assigned to the Special Purpose Vehicle (SPV) formed for the project.

Who Will Be Rehabilitated in Malad?

According to project sources, the Malad site will house:

• Residents living on upper floors in Dharavi

• Families who settled between January 1, 2011, and November 15, 2022

• Residents deemed ineligible for in-situ rehabilitation

Eligible residents under Maharashtra’s Slum Rehabilitation Act will receive:

• One rehabilitation unit per eligible resident

• 350 sq. ft. homes (larger than the earlier 300 sq. ft. units)

Residents who do not qualify for permanent housing inside Dharavi will be moved to rental housing complexes under a hire-purchase model.

Role of Adani Group in the Dharavi Redevelopment

The project is being executed by Navbharat Mega Developers Private Limited (NMDPL) — a joint venture between the Maharashtra Government and the Adani Group.

In November 2022, the Adani Group emerged as the winning bidder with a commitment of ₹5,069 crore as initial investment.

Project Timelines:

• 7-year deadline for constructing rehabilitation housing

• 17-year overall timeline for full redevelopment

A portion of the Malad land will also be used to build apartments under the sale component, which will be sold in the open market to cross-subsidize rehabilitation costs.

Scale of the Dharavi Redevelopment Project

The Dharavi redevelopment is often described as:

• The largest urban rejuvenation project in the world

• A step towards making Mumbai slum-free

Massive Land Allocation Across MMR

The Maharashtra government has identified approximately 540 acres of land within the Mumbai Metropolitan Region (MMR) for affordable housing and rehabilitation.

These include parcels at:

• Kurla

• Salt pan lands in Kanjur

• Bhandup

• Mulund

• Portions of Deonar dumping ground

How Many Homes Will Be Built?

Officials estimate:

• 1.25 to 1.5 lakh new homes

• Rehabilitation for nearly 10 lakh Dharavi residents

This makes it one of the most ambitious housing and urban renewal missions ever undertaken in India.

What Is the Dharavi Redevelopment Project?

The Dharavi Redevelopment Project aims to:

• Replace informal housing with planned residential towers

• Provide legal ownership rights

• Improve sanitation, infrastructure, and civic amenities

• Boost Mumbai’s real estate potential

It is being positioned as a transformational step toward reshaping Mumbai’s urban landscape while addressing decades-old housing challenges.

Real Estate Impact: What It Means for Mumbai

From an investment and urban planning perspective, this development could:

• Increase real estate demand in Malad and surrounding suburbs

• Boost infrastructure development in western Mumbai

• Create new affordable and mid-income housing inventory

• Improve land value appreciation across MMR

With land parcels valued at hundreds of crores and private-public collaboration underway, the Dharavi redevelopment is not just a housing project — it is an economic catalyst.

Final Thoughts

The handover of 118 acres in Malad marks a crucial milestone in the Dharavi Redevelopment Project. While challenges such as litigation, eligibility disputes, and relocation logistics remain, the project now appears firmly on the execution path.

If successfully implemented, it could redefine:

• Urban redevelopment in India

• Slum rehabilitation policy models

• Affordable housing frameworks in metro cities

The coming years will determine whether this ambitious plan truly becomes the blueprint for future urban transformation projects.