The Slum Rehabilitation Authority (SRA) has taken a significant step to protect the interests of slum dwellers by freezing flats from the sale component of projects. This move comes after the authority mandated developers to deposit an advance rent of two years for slum dwellers. The SRA is now freezing flats equivalent to three years' rent until builders hand over permanent homes to eligible slum dwellers.
Early-Stage Freezing to Secure Rent and Homes
According to SRA officials, this early-stage freezing of sale flats is aimed at securing rent payments and ensuring that eligible slum dwellers receive permanent accommodation. This is the first time the SRA has implemented such a measure to prevent developers from defaulting on rent obligations. Previously, builders were required to deposit an advance rent of two years, which was then passed on to slum tenants.
Details of the Circular
An SRA circular stated, "Developer's liability towards transit rent obligations is required to be adequately safeguarded. Accordingly, freezing of appropriate sale components and timely communication of such restrictions to statutory authorities is mandatory." The circular further outlined that while issuing various approvals, the concerned executive engineer shall compute the developer's transit rent liability for a period of three years, considering the number of eligible slum dwellers, monthly rent payable, and applicable annual increment. Based on this computation and ready reckoner valuation, SRA will identify and earmark specific sale flats or areas, generally from lower floors, as security for transit rent.
Policy Reforms and Rent Collection
SRA CEO Mahindra Kalyankar, who is driving policy reforms, highlighted that pending rent was a major issue for slum dwellers. He noted that SRA has collected over Rs 1,000 crore in rent and disbursed most of it. As part of the growth hub project, the agency aims to deliver over 5 lakh homes by 2030. "SRA has introduced several reforms to fast track projects. We have given a big push to collect all pending rent from builders so that slum dwellers don't suffer," said Kalyankar.
Developer Undertaking Required
The circular mandates that developers must submit a written undertaking or affidavit stating that the frozen flats shall not be sold, transferred, mortgaged, or encumbered until the completion of rehabilitation, allotment of permanent accommodation, and full clearance of transit rent and related dues. This ensures that the security remains intact until all obligations are met.
The SRA's proactive approach aims to address long-standing issues in slum redevelopment projects, ensuring timely delivery of homes and regular rent payments to slum dwellers.
