The long-pending redevelopment of LIC-owned buildings in South Mumbai has started moving forward. These buildings are marked as dangerous and in poor condition. Cabinet minister Mangal Prabhat Lodha met Finance Minister Nirmala Sitharaman in New Delhi last Thursday. He raised the concerns of around 10,000 tenants living in these buildings.
A formal letter was also submitted to the minister by the LIC Tenants and Occupants Welfare Association (LTOWA). The letter requested quick action to speed up redevelopment and ensure the safety of residents.
Many families are still living in unsafe conditions in several LIC and Dena Bank buildings in South Mumbai. Some of these buildings are nearly 90 years old. There are 25 LIC buildings in the C1 category, which means they are unfit to live in.
Around 45,000 people pass through these buildings daily, and about 10,000 people live in them. MHADA has issued notices in many cases, and some buildings have been partly evacuated. With the monsoon season coming, safety concerns have increased.
Lodha has been following this issue for the past four years. He has been coordinating with MHADA, LIC, and the central government. During his meeting with Sitharaman, he submitted the LTOWA memorandum and highlighted delays in the redevelopment process. One major issue is the delay in appointing Project Management Consultants (PMCs).
Earlier, LIC officials said that appointing PMCs and starting redevelopment could take up to two years. This has raised serious safety concerns among tenants. LTOWA secretary Ramesh Nirmal Jain also mentioned this in his letter to the finance minister. He said tenants in many LIC buildings in Mumbai are at serious risk because redevelopment work has not started yet. Although tenders have been issued for PMCs, no real progress has been made. He said such delays are not acceptable when people’s lives are at risk.
Jain said that Lodha informed them that the finance minister has instructed that old buildings should be redeveloped as per MHADA rules. He also said that C1 category buildings should be given top priority. LIC issued tenders in November 2025 for New Badamwadi on Lamington Road and in March 2026 for Angrewadi Chawl in Girgaon. However, PMCs have not yet been appointed. He warned that building conditions will worsen further during the monsoon.
The letter also asked the finance minister to speed up the redevelopment process. It requested fair valuation of LIC properties as per MHADA rules and quick selection of capable developers. The association also asked that tenant groups should be allowed to suggest reliable developers.
The tenants’ association and LIC Angrewadi leaders made several demands. These include quick appointment of PMCs, providing temporary housing as per MHADA rules, stopping rent for vacated buildings, and preventing evictions until redevelopment actually begins. They also demanded that every resident, whether a tenant or leaseholder, should get a home in the new building without any discrimination. They further requested that no extra financial or legal burden should be placed on tenants during this period.
Lodha thanked Nirmala Sitharaman for her assurance. He said he is confident that tenants living in LIC and bank-owned buildings will soon get justice and secure housing. However, one affected tenant said that the government should give a written and official order. He added that many verbal promises in the past were not fulfilled and requested a formal notification this time.
