MUMBAI: In the lead-up to the BMC elections, Deputy Chief Minister Eknath Shinde has transferred approximately ₹17.7 crore in overdue rents to 883 families involved in a Slum Rehabilitation Authority (SRA) project in Magathane on Tuesday.
The redevelopment project for the Devipada Cooperative Housing Society, which spans 30,287 sq m of Mhada land, has faced delays, accumulating approximately ₹46 crore in overdue rents owed to the affected slum dwellers, as reported by SRA officials.
Earlier this month, when the builder remitted ₹17.7 crore to the SRA, Shinde, also serving as the state housing minister, allocated the entire sum to eligible slum residents.
Political analysts suggest this initiative aims to gain voter favor prior to the BMC elections. Prakash Surve of Shiv Sena, the sitting MLA from Magathane, is striving to challenge the rival Shiv Sena (UBT) in this area during the civic elections.
SRA CEO Mahindra Kalyankar highlighted that addressing overdue rent is a significant challenge facing slum residents in the city.
According to a new circular (210), builders are now required to deposit two years’ rent in advance with the SRA, which will then distribute the funds to slum tenants.
“We’ve made substantial efforts to ensure all overdue rents from builders are collected so that slum dwellers are not disadvantaged. While the SRA is accelerating slum redevelopment, our focus remains on slum tenants to ensure they receive their due payments and that projects are completed punctually. We’ve implemented several policy changes towards this end, and recent amendments also reflect this focus,” Kalyankar said.
“For SRA projects that have stalled, a committee established under the amnesty scheme has appointed a financial institution as a co-developer for the Magathane project in 2024,” a senior SRA official stated. “Under the new regulations, the developer has pledged a total of ₹29 crore as monthly rent for two years, while the society claims the pending rent owed to 883 hutment dwellers is nearly ₹46 crore. On October 1, the developer deposited around ₹17.7 crore with the SRA. The commencement certificate for the construction of the sale unit will be issued once the remaining ₹28.3 crore is paid to the SRA.” The amnesty scheme, initiated in 2022, allows financial institutions (FIs), including non-banking financial companies (NBFCs), invested in dormant SRA projects to facilitate redevelopment without severe penalties and easier clearances. These institutions can act as co-developers alongside the SRA. Officials stated that under this scheme, FIs not previously recorded by the SRA but involved in SRA projects have an opportunity to complete such projects, prioritizing the rehabilitation aspects of these schemes.
