Maharashtra govt tables bill to amend slum act, enable SRA to recover dues

The Maharashtra government on Tuesday tabled a bill in the state assembly that proposes to amend the law concerning slum redevelopment, allowing the Slum Rehabilitation Authority (SRA) to recover pending transit rent dues from builders or developers.

The bill seeks to amend the Maharashtra Slum Area (Improvement, Clearance and Redevelopment) Act, 1971. It also seeks to treat unpaid rent to slum dwellers as arrears of land revenue, thereby empowering the SRA to initiate recovery proceedings under the Maharashtra Land Revenue Code (MLRC). "The SRA hopes that the amendments will help fast-track its projects and also ensure slum dwellers are not left in the lurch without their rightful rent," an official said.

 

As per the proposed amendment, if a defaulting builder lacks sufficient company assets to clear the dues, the liability can extend to the personal property of its directors or partners. Currently, the SRA can issue stop-work notices or deny new permissions to defaulter developer.  Officials, however, say that even as the stop work notice is issued, slum dwellers are left in lurch with no rent and the lack of stronger punitive measures lead to widespread non-payment of rent, which is why amendment is necessary. The bill also seeks to reduce the window for dissenting slum dwellers to join the SRA schemes - from 120 days to 60 days - once a majority (over 50 per cent) has consented to a redevelopment plan. 

  After the 60-day period, those who do not join the scheme risk losing their claim to on-site rehabilitation and may only be considered for relocation elsewhere, subject to availability. Another provision allows land under slum redevelopment to be handed over to government agencies like MMRDA, MHADA, MSRDC and CIDCO within 30 days of issuance of a letter of intent, enabling faster execution of public sector-led projects.