The Acquisition of land and disposal of property under the MHADA Act

author- Sailee Kale


The Maharashtra Housing and Area Development Authority Act plays a vital role in the development and maintenance of housing and infrastructure on the state of Maharashtra, India. Among its many responsibilities, the Act governs the acquisition of land and the disposal of property for various developmental projects. This article delves into the key provisions and procedures related to land acquisition and property disposal the MHADA Act.

  1. Land Acquisition under the MHADA Act:

The MHADA Act provides the authority with the powers to acquire land for the development of affordable housing schemes and other infrastructure projects. The process of land acquisition is executed in adherence to the Land Acquisition Act, 2013, which replaced the previous Land Acquisition Act of 1984. The newer act emphasizes transparency, fair compensation, and rehabilitation and resettlement of affected persons.

  1. Procedure for Land Acquisition:


  1. Identification of Land: MHADA identifies land parcels suitable for development and prepares a detailed plan for the proposed project.
  2. Notification: the concerned authorities issue a notification announcing the intention to acquire the identified land. This notification specifies the purpose of acquisition, the extent of land requires, and calls for objection and claims from affected parties.
  3. Social Impact Assessment (SIA): In case where land acquisition affects a large number of families or tribal communities, a comprehensive Social Impact Assessment is conducted to analyze the impact on livelihoods and living conditions of the affected people.
  4. Rehabilitation and Resettlement (R&R): The Act ensures that adequate rehabilitation and resettlement measures are put in place for those displaced by the acquisition, especially when it involves large-scale projects.
  5. Land Acquisition and Compensation: After considering objections and conduction SIA, the authorities proceed with the acquisition and provide fair compensation to the landowners as per the provisions of the Land Acquisition Act, 2013.
  6. Possession of Land: Upon completion of the compensation process, MHADA takes possession of the acquired land for development purposes.


  1. Exemptions and Urgency Clause:

In certain situations, such as emergencies or for defense projects, the government may exempt land acquisition from the Social Impact Assessment and other mandatory procedures. However, this exemption does not exempt the authorities from providing appropriate compensation and rehabilitation to affected persons.

  1. Disposal of Property under the MHADA Act

In addition to land acquisition, the MHADA Act also governs the disposal of property owned by the authority. This may include residential or commercial units constructed by MHADA.

Maharashtra Housing and Area Development Authority v. XYZ Developers (2019):

This case addressed the issue of the disposal of commercial properties by MHADA through auctions. The court upheld the authority’s right to adopt a tendering or auction process for the sale of commercial properties. It emphasized the need for a transparent and competitive process to maximize the value of the property while ensuring equal opportunities for potential buyers.

MHADA v. Shah Builders (2015):

In this case, the Bombay High Court ruled that the lottery system used by MHADA to allocate residential units is a fair and transparent method. The court held that the lottery ensures equal opportunity for all eligible beneficiaries to acquire affordable housing units, and it aligns with the authority’s objective of catering to the housing needs of economically weaker sections of society.

  1. Allotment through Lottery System:

MHADA often utilizes a lottery system to allocate residential units to eligible beneficiaries. These units are offered at affordable rates and are a part of the authority’s efforts to cater to the housing needs of economically weaker sections of society.

  1. Sale through Tenders or Auctions:

MHADA may also choose to dispose of certain properties through a tendering or auction process. This method is commonly employed for commercial properties or vacant land parcels owned by the authority.

The Maharashtra Housing and Area Development Authority Act is a crucial piece of legislation that governs the acquisition of land and the disposal of property for developmental projects in Maharashtra. The Act emphasizes fair compensation and rehabilitation measures for affected individuals while ensuring transparency in the land acquisition process. By efficiently acquiring land and managing property disposal, MHADA continues to contribute significantly to the growth and development of affordable housing and infrastructure in the state.


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