MUMBAI: The Slum Rehabilitation Authority (SRA) has mandated developers to deposit an advance rent covering two years for slum residents in their projects. Additionally, the SRA has started ‘freezing’ sale flats equivalent to three years of rent until builders provide new homes to qualified slum dwellers.
This proactive measure aims to ensure that rent payments are secured and permanent housing is provided to eligible slum residents, according to SRA officials. This is the first instance of the SRA freezing portions of flats or commercial units from projects to prevent developers from neglecting their rental obligations to slum dwellers.
SRA previously required builders to deposit two years’ worth of advance rent, which is subsequently distributed to slum tenants.
The SRA circular states, “The developer’s liability towards transit rent obligations must be thoroughly safeguarded. Accordingly, freezing appropriate sale components and timely notification to statutory authorities is essential. Upon issuing IOAs or revised LOIs for Composite/Sale Buildings, the designated executive engineer must accurately assess the developer’s transit rent liability for three years, factoring in the number of eligible slum dwellers, monthly rents, and annual increments. Based on this assessment, the SRA will identify and designate specific sale flats to be frozen as collateral for transit rent,” an SRA circular indicated.
SRA CEO Mahindra Kalyankar, who is enacting policy reforms within the SRA, highlighted that overdue rent is a significant issue for slum tenants. So far, the SRA has managed to collect over ₹1,000 crore in rent and has disbursed a substantial portion of it.
Kalyankar explained that as part of the growth hub initiative, the agency aims to deliver over 500,000 homes by 2030. “SRA is implementing numerous reforms to expedite projects. We are striving to collect all outstanding rent from builders to ensure that slum residents are not disadvantaged. While accelerating slum redevelopment, we remain focused on the needs of slum tenants, ensuring their entitlements are met and projects are completed timely. Recent policy amendments are steps taken in this direction,” Kalyankar stated.
The circular further mentions, “Developers will be required to provide a written undertaking or affidavit confirming that the specified flats will not be sold, transferred, mortgaged, or encumbered until the rehabilitation process is completed, permanent accommodation is allotted to eligible slum dwellers, and all transit rents and related dues are fully cleared.”
