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Mumbai's Slum Rehabilitation Authority (SRA) has recovered INR 1,386 crore in unpaid rent from builders over the past three years, marking a major push for financial compliance in slum redevelopment. The amount includes INR 601 crore from regular collections, INR 134 crore via an amnesty scheme, and INR 650 crore from a rule mandating two years' advance rent. A recent amendment to the Maharashtra Slum Areas Act empowers SRA to seize assets-even those of company directors-to recover dues. CEO Mahindra Kalyankar stated these steps will ensure timely rent for slum dwellers awaiting rehousing and help accelerate project completion across the city's dense informal settlements.
Mumbai's Slum Rehabilitation Authority (SRA) has recovered a substantial INR 1,386 crore in unpaid rent from various builders over the past three years. This significant collection highlights the authority's intensified efforts to ensure financial compliance in slum redevelopment projects across the city. Advertisement
The amount was recovered through a mix of strategies. This includes INR 601 crore from regular collection schemes, INR 134 crore via an amnesty scheme, and a notable INR 650 crore collected under a newer circular that requires builders to deposit two years of advance rent upfront.
A key factor in this improved collection has been a recent amendment to the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. This amendment grants the SRA stronger powers, enabling it to seize and sell a defaulting builder's assets. If company assets are not enough, the SRA can even go after the assets of its directors or partners to ensure timely rent payments to slum dwellers. This provides legal processes similar to those used for recovering land revenue arrears, including attaching properties and potentially even imprisonment for those who default.
Mahindra Kalyankar, CEO of the SRA, stated that the amendment would help speed up SRA schemes and ensure slum dwellers receive their rent promptly. He noted that the SRA is actively working to collect all pending rents and is putting in place policy changes to make sure projects are completed on time and tenants get their dues.
Slum redevelopment is a complex and long-term process in Mumbai, and regular rent payments are vital for slum dwellers who are temporarily relocated or awaiting their new homes. This proactive approach by the SRA aims to protect the rights of tenants and accelerate the pace of urban renewal in Mumbai's densely populated informal settlements.
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