Curation Team
MUMBAI: In a major crackdown on builders defaulting on payment of rent to slumdwellers, Slum Rehabilitation Authority (SRA) has collected dues of Rs 1,386 crore in nearly three years—Rs 601 crore under regular schemes, Rs 134 crore under its amnesty scheme and Rs 650 crore under a new circular that requires builders to deposit advance rent for two years with the agency.
As per data released by SRA, of the Rs 880-crore rent dues from regular projects, Rs 279 crore is yet to be collected, and the total dues from 23 projects under the amnesty scheme has dropped from Rs 501 crore to Rs 367 crore.
The data was released on the heels of the state legislature passing an amendment to Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, that would allow SRA to attach a company’s property or that of its directors/partners if it doesn’t have sufficient assets, sell it and pay the money as rent to slumdwellers.
SRA CEO Mahindra Kalyankar said that the amendment would help fact-track SRA schemes and make sure that slumdwellers get their rent on time. “We have given a big push to collect all pending rents from builders so that slumdwellers don’t suffer. While SRA is fast-tracking slum redevelopment, we are focusing on slum tenants and making sure that they get their dues and projects are completed on time. We have made several policy interventions for this and recent amendments made are a step in this direction,” he said.
Officials said once the amended Act is enforced, govt will have the option of pursuing various legal processes to recover land revenue arrears, including serving notices, attaching properties and even imprisonment of defaulters. “Under Maharashtra Land Revenue Code, govt can attach and sell a defaulter’s movable and immovable property to recover dues. In some cases, the bank accounts or lockers of a defaulter may be attached. Right now, SRA can only issue stop-work notices to the builder for not paying rent or stop giving new permissions. There is no deterrent of any kind beyond that and because of this, builders don’t pay rent,” an official said.
