The Brihanmumbai Municipal Corporation (BMC) has accorded in principle approval on 25 June 2009 for developing old buildings under a cluster policy aimed at increasing public housings initiated by the Maharashtra Government. However, the state government is yet to give its nod for the proposed project.

Shreepati Group, who submitted its proposal to redevelop a total area of 46,885 sq mtrs in five phases has secured approval for redeveloping old tenanted buildings under first two phases covering 12,318 sq mtrs at Pimpalwadi, Girgaum in Mumbai.

Of the 2,000 tenants to be rehabilitated in the whole project, 879 will be given 300 sq ft flats in four 20-storey towers to be built under this scheme.

The Pimpalwadi redevelopment scheme was reportedly the first public-private venture approved in 2006 under the DC rule of 33 (7). Under this, MHADA was entitled to utilise a floor space index (FSI) of four to redevelop old tenanted buildings acquired by it. But shortage of funds and opposition from tenants in some cases led to MHADA deciding to share the higher FSI with a private developer.