Following the demolition of slums, strict action is decided against developers who refrain from commencing construction of rehabilitation buildings within a specific period.
Mumbai: After the Supreme Court’s scrutiny on exorbitant rents and subsequent directive to recover two years’ arrears and further annual payments for the redevelopment of slum settlements, the decision to grant permission for the redevelopment plan of slums to rehabilitate the developers without giving personal agreements has now been restricted by the Authority. Furthermore, a stern action is decided against those developers who, post-slum demolition, fail to initiate construction of rehabilitation buildings within a specified period.
Even though 380 proposals were accepted and acknowledged, approximately 517 schemes, of an estimated 900, are currently under the Authority’s focus. Many of these plans have been pending for several years, and without rentals, slum dwellers’ conditions have worsened. The Authority has begun efforts in the direction of executing these plans, as expressed by Satish Lokhande, the Chief Officer of the Slum Rehabilitation Authority. Despite personal agreements being binding, the Authority had earlier refrained from pressuring developers. However, now, it will be necessary to commence the redevelopment plan before entering into any personal agreements. It has been explicitly stated by the Authority that slums should not be vacated without tenants receiving rents and personal agreements.
Various planning authorities are also considering alternative methods, including tapping into the financial resources of developers or special financial companies, to expedite the implementation of these plans. It has also been suggested by a senior official that redevelopment and sale of buildings for rehabilitation and sale should be coordinated. However, it has been clarified by the same high-ranking official that under no circumstances will the slum redevelopment scheme interfere with the completion of construction work on slum dwellers’ buildings. The Authority is now stringent on this matter, as pointed out by the official.
Developers receiving two years’ arrears are responding positively to the directive. Henceforth, in all ongoing plans, there will be no complaints of rent exhaustion for at least the next two years, as stated with confidence by this official. A robust move has been initiated to recover outstanding dues of approximately 600 crore rupees from developers. Consequently, all relevant developers will need to pay rents. Developers who have the intention of completing the plan will receive a complete rent waiver, and only after this can they be given subsequent approvals for the next year’s arrears. The Authority has also taken the decision to start the implementation of the redevelopment plan along with the registration of developers for permanent transit camps to handle such disruptions.
Furthermore, the Authority has taken a binding decision to submit intention letters from developers regarding rent collection, as well as information about the slum dwellers who have become landowners, and the initial construction details. These have now been made mandatory to present to the Authority alongside the developers for registration.
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