Mumbai: SRA Recovers Rs 700 Crore from Defaulting Builders, Enforces New Rule to Speed Up Rent Payments to Slum Dwellers

Under the Slum Rehabilitation Authority (SRA) scheme, authorities have intensified actions against builders who have defaulted on rent payments for slum dwellers. To date, Rs 700 crore has been recovered from these builders. The SRA has announced that builders who settle their outstanding rent will be ineligible for new projects. This stricter enforcement is expected to expedite rent payments to slum residents.

The SRA has implemented a rehabilitation scheme aimed at providing permanent housing for slum dwellers. Under this scheme, it is mandatory for eligible residents to pay rent after their huts are demolished to make way for new construction. Initially, builders are responsible for paying the rent to the displaced residents. However, many builders have since ceased these payments. In response, the SRA has initiated a rent collection drive, appointing 25 nodal officers last year to recover the overdue rent.

To address complaints regarding rent payments, the SRA has introduced new measures. Builders are now required to deposit a two-year advance rent by demand draft and the third year's rent by cheque to the SRA when accepting the new scheme. As of the end of July, builders have deposited over Rs 700 crore to cover both outstanding and advance rent for slum dwellers under the scheme. This initiative is facilitating timely rent payments to residents and is reportedly contributing to a reduction in rent-related complaints, according to the SRA.

Auditor Review of SRA Actions

Builder Sanctions and Project Restrictions:

• The SRA is actively taking action against builders who default on rent payments, including removal from ongoing projects.
• Builders who fail to pay rent will be ineligible for future projects under the scheme.

Online Complaint System and Rent Review:

• A new online system has been launched for slum dwellers to file rent complaints.
• An auditor has been appointed to assess outstanding rent by conducting on-site reviews at relevant institutions.