India, Dec. 5 -- The state government has allowed the Maharashtra Housing and Area Development Authority (MHADA) to acquire the KK Modi Wani Chawl in Sewri, paving the way for its long-pending redevelopment. The decision comes after the developer failed to complete the redevelopment project even after 25 years. Following the government's directions, MHADA issued an order on Thursday to initiate criminal action against the developer and blacklist the firm.

The construction company began redeveloping the KK Modi Chawl in 1992, and the building was fully vacated by 1998. Since then, around 205 beneficiary tenants have been living in MHADA-owned transit camps. In July 2013, MHADA's Mumbai Building Repairs and Reconstruction Board (MBRRB) can...