The long-awaited Dharavi Redevelopment Project (DRP) has officially transitioned from the drawing board to on-ground execution. In a major step forward, the Brihanmumbai Municipal Corporation (BMC) has begun issuing notices to approximately 900 tenants in Dharavi’s Shahu Nagar area, ordering them to vacate their homes to clear land for construction.
This move follows similar relocation orders issued to Sector 6 residents last month, signaling a coordinated push by the Maharashtra government to expedite the mega-renewal project. The acceleration comes on the heels of Chief Minister Devendra Fadnavis’ recent directive to hand over 10,000 permanent homes by 2028.
The Relocation Package: Allowances and Compensation
To minimize disruption and ensure a smooth transition, the state has put together a structured financial and housing compensation package for the displaced families.
| Current Home Size | Monthly Rent Allowance | Annual Increment | One-Time Shifting Bonus |
| Up to 275 sq. ft. | ₹22,000 | 5% | ₹15,000 |
| Up to 375 sq. ft. | ₹30,000 | 5% | ₹15,000 |
Note: The ₹15,000 shifting allowance is a flat, one-time payment guaranteed to every family, regardless of whether they choose transit housing or self-rented accommodation.
Temporary Housing: The Transit Options
Residents forced to move have two primary pathways for temporary shelter while their old neighborhoods are rebuilt:
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MHADA Transit Units: For those who do not want to hunt for a rental house, the DRP and NMDPL have prepared 500 transit apartments in MHADA buildings located within Sector 5 of Dharavi. Officials state these units offer larger, safer, and better-quality living conditions than the current dilapidated structures.
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Self-Rented Accommodation: Residents can choose to find their own housing anywhere else, using the monthly government stipend to cover their rent.
Legal Guardrail: Before a single brick is moved or a resident vacates, a formal, legally binding agreement will be executed with each family. This document will explicitly guarantee their temporary relocation terms and their final rehabilitation rights.
The Final Prize: Massive Upgrades for Permanent Homes
The temporary displacement comes with a significant silver lining. When residents return to Shahu Nagar, they will be moving into substantially larger, modern properties.
Under the DRP guidelines, displaced Shahu Nagar residents are guaranteed permanent homes in the exact same vicinity within five years of the project receiving its Commencement Certificate. The new apartments will feature a minimum carpet area of 500 sq. ft.—or 1.35 times the carpet area of their original home, whichever figure is higher.
By clearing out these pockets in structured phases, authorities hope to fast-track construction and finally deliver a modernized, safer urban ecosystem to the citizens of Dharavi.
