08-07-2025
SRA law tweak: Assets to be seized if bldr defaults on rent
Mumbai: State govt is putting the screws on builders as well as slum dwellers to speed up SRA projects, reports Chaitanya Marpakwar.
To recover pending rent from builders who don't pay slum dwellers after demolishing their homes, govt has introduced an amendment to The Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 which allows rent money to be recovered from a company's property or the personal property of its directors/partners.
Since outstanding rent will be considered arrears of land revenue, SRA will be able to attach and sell a builder's property to extract rent money.
Govt has also reduced the time given to slum dwellers who don't agree to join a rehab scheme from 120 days to 60 days after more than 50% of slum dwellers have given consent.
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Such dwellers can lose their rehab units to others and will only be eligible for a pitch at other locations if and when they are available.
The amendment bill was introduced in the Legislative Assembly on Tuesday and will be discussed later this week. SRA CEO M Kalyankar said that the amendments would help fast-track SRA schemes and make sure that slum dwellers get rent on time. SRA officials said around Rs 620 crore in rent is still due from builders.
Officials said to recover arrears of land revenue, govt has various legal processes at its disposal including serving notices, attaching property, and even imprisoning the defaulter. "Under the Maharashtra Land Revenue Code (MLRC), govt can attach and sell the defaulter's movable and immovable property to recover the dues. In some cases, bank accounts or lockers may be attached. Right now the SRA can only issue stop work notices to the builder for not paying rent or stop giving new permissions but beyond that there is no deterrent," an official said.
Some other amendments in the bill include those related to handing over land to govt agencies like MMRDA, MHADA, MSRDC and CIDCO to redevelop slums on lease within 30 days of issuance of the letter of intent.
