Real estate developers of around 150 slum rehabilitation projects in Mumbai owe Rs 525 crore in rent to tenants who vacated their homes for slum rehabilitation projects, according to Maharashtra government data.
The Maharashtra government has said owing to the outstanding amount, developers involved in these projects will not be given any new slum rehabilitation projects. The data on outstanding rent was tabled in the ongoing budget session of Maharashtra
The reply, by Devendra Fadnavis, Deputy Chief Minister of Maharashtra and housing minister, was tabled in the assembly on March 17. In it, he stated, “In slum rehabilitation authority [sic], a total of Rs 647 crore rental amount was due for 150 projects.”
The reply also noted, “Of the Rs 647 crore, Rs 122 crore was collected from the developers of these 150 projects, and now there is outstanding [sic] of Rs 525 crore. Due to this, no new projects will be given to real estate developers involved in these 150 slum rehabilitation projects.”
What is a slum rehabilitation project?
Under the Slum Rehabilitation Authority (SRA) scheme, the developer must rehabilitate slumdwellers in flats with a size of around 300 sqft. In exchange, the remainder of the Floor Space Index (FSI) can be utilised by developers to construct apartments, to be sold in the open market.
FSI is the ratio that determines how many floors a particular building can have.
Slumdwellers who give up their homes for such projects are entitled to monthly rental compensation for temporary accommodation until their apartments are constructed.
The monthly rental compensation depends on the market rate in the area where the project is being executed.
How many SRA projects have there been till now?
According to the Maharashtra Economic Survey 2022-23 tabled in the ongoing budget session of Maharashtra, since inception (1995) up to December 2022, 2,231 projects have been completed and 2,45,295 families residing in slums have been rehabilitated in these tenements.
Rent not paid for years
Prakash Mishra, a resident of Bandra, Mumbai, whose slum rehabilitation took over 15 years, said, "In our projects there were 580 eligible tenants of which 180 have been rehabilitated, but their buildings lack permissions. Around 300 slums are yet to be vacated and out of 100 tenants who are on rent, 90 tenants are not getting monthly rental compensation."
Mishra added, “I was to be paid Rs 12,000 monthly rental compensation, but out of around 15 years, I have received rental compensation for only five years. The developer is yet to pay me over Rs 14 lakh towards rent and over Rs 4 lakh towards interest on default, which takes the total outstanding to Rs 18.75 lakh. Further, if we consider the pending dues of all 90 tenants, the amount goes above Rs 3 crore.”
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
