The state housing department is mulling on revising the rate at which the Maharashtra Area and Housing Development Authority (MHADA) compensates developers for its share of the constructed surplus area that redevelopment projects in the city make available. The Confederation of Real Estate Developers' Associations of India and Maharashtra Chamber of Housing Industry (Credai-MCHI) has taken up the issue with Chief Minister Devendra Fadnavis, following an increased tussle between the developers and MHADA. The CM has asked the housing secretary to find an amicable solution to the grievance. Housing secretary Sanjay Kumar confirmed that his department was working on the request.

The developers say the existing rate of R2,529.54 per sqm (R235 per sq ft) that was approved in 1991, is abysmally low. Seeking upward revision of the rate, they say the current ready reckoner rate for construction is R28,500 per sqm fixed by the government, which itself is 10 times the 27-year-old MHADA rate. The developers say that the abysmally low rates result in huge and unfair losses to them.