In a significant development for small business owners and entrepreneurs, the Maharashtra Housing and Area Development Authority (MHADA) has cleared the proposal for e-auctioning 149 shops under the jurisdiction of its Mumbai Board. The decision was officially approved by MHADA Vice Chairman Sanjeev Jaiswal, paving the way for the registration and application process to begin From 12th August 2025, and bidding happens on August 28, 2025
The Mumbai Board's latest move comes after its earlier attempt in June 2024, when only 49 out of 173 shops were sold through e-auction due to high reserve prices and usage restrictions. The remaining 124 unsold shops, along with 25 additional shops in areas like Powai, will now be offered with revised pricing and relaxed conditions, making them far more attractive to buyers this time.
Total Shops Available: 149
Location Areas:
Gavanpada
Chunabhatti
Tunga Powai
Kopri Powai
Charkop
Old Magathane
Mahavir Nagar
Pratiksha Nagar
Malvani
Bimbisar Nagar
Shop Sizes: Ranging from 125 sq. ft. to 1,500 sq. ft.
Auction Method: Online e-auction
Auction Timeline: Expected to begin begin From 12th August 2025 via official MHADA platforms
Previously, the bid price for shops was calculated at two times the ready reckoner rate (RRR) for residential properties, making many units unaffordable. The revised pricing strategy has now brought the rate down to 1.5× the RRR, making shop ownership more viable for small-scale entrepreneurs.
| Category | Previous Reserve Price | New Reserve Price |
|---|---|---|
| Residential Shops | 2× Ready Reckoner Rate (RRR) | 1.5× RRR (residential) |
| Non-Residential Shops | 1× RRR or higher (whichever is applicable) | Remains unchanged |
Many of the previously unsold shops were reserved for specific uses like:
Banks
ATMs
Gyms
Salons
Medical Stores
However, this restriction led to poor response from bidders. As a result, MHADA has now removed these usage conditions, allowing buyers the freedom to choose the type of business they want to set up—subject to standard zoning and municipal norms.
Milind Borikar, Chief Officer of the Mumbai Board, stated:
“We believe that reducing the rates and removing the usage restrictions will result in greater participation and help clear the inventory of vacant shops. This will also promote commercial activity in MHADA housing projects.”
MHADA will soon release an official advertisement outlining the start of the:
Registration process
Application form availability
Auction date schedule
Interested applicants are advised to keep a close watch on the MHADA official website and authorized e-auction portals for updates.
| Feature | Details |
|---|---|
| Total Shops | 149 |
| Unsold from 2024 | 124 |
| New Additions | 25 (Including Powai & Bimbisarnagar) |
| Sizes | 125 to 1,500 sq. ft. |
| Location Clusters | 10 prominent MHADA zones in Mumbai |
| Pricing Revision | Reduced from 2× RRR to 1.5× RRR |
| Usage Rules | Relaxed for broader business options |
| Auction Start | 1st week of August 2025 (expected) |
This auction offers a rare opportunity for small businesses, professionals, and startups to secure shop space in well-developed MHADA colonies across Mumbai, at revised and competitive prices. With improved flexibility and reduced financial entry points, this move is expected to generate strong interest from across the city.