MUMBAI: In a significant effort to tackle builders who are defaulting on rent payments to slum dwellers, the Slum Rehabilitation Authority (SRA) has successfully collected dues amounting to Rs 1,386 crore over the past three years. This includes Rs 601 crore from regular schemes, Rs 134 crore from an amnesty program, and Rs 650 crore due to a new directive mandating builders to prepay two years of rent to the agency.
According to SRA data, out of the Rs 880 crore owed from regular projects, Rs 279 crore remains uncollected. Additionally, the outstanding amount from 23 projects under the amnesty scheme has decreased from Rs 501 crore to Rs 367 crore.
This data comes shortly after the state legislature approved an amendment to the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. This amendment empowers the SRA to seize the properties of companies or their directors/partners if they do not possess sufficient assets, and to sell such properties to pay rents owed to slum residents.
SRA CEO Mahindra Kalyankar remarked that this amendment is expected to expedite SRA operations and ensure timely rent payments to slum dwellers. “We have made significant strides in collecting overdue rent from builders to prevent slum tenants from facing hardship. While we are fast-tracking slum redevelopment, our focus remains on ensuring that slum residents receive their dues and that projects are completed promptly. Recent policy changes are aimed at facilitating this goal,” he stated.
Officials indicated that with the implementation of the amended Act, the government will have various legal avenues to recover land revenue dues, including sending notices, seizing properties, and even pursuing imprisonment for defaulters. “Under the Maharashtra Land Revenue Code, the government has the authority to attach and sell the movable and immovable properties of defaulters to recover dues. In some situations, a defaulter’s bank accounts or lockers may also be seized. Currently, the SRA can only issue stop-work orders to builders for non-payment of rent or halt new permissions. There are no other deterrents, which leads to ongoing rent payment issues,” an official commented.
