Mumbai: Developers defaulting on rent in slum rehabilitation schemes will now face stricter consequences under the new Maharashtra Slum Act 2025. The Chief Executive Officer of the Slum Redevelopment Authority (SRA) has been empowered to recover unpaid rent from developers' properties. This amendment, introduced by Tourism and Mining Minister Shambhuraj Desai, shortens the eviction notice period for occupants from 120 to 60 days, making it obligatory for them to pay for alternative housing more quickly after eviction.
In cases where developers fail to pay rent, the CEO can recover dues akin to land revenue recovery processes. Additionally, the CEO or appointed officers can demolish any part of a structure they oversee as needed.
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Initially, the slum rehabilitation scheme introduced in 1995 aimed to alleviate slum conditions in Mumbai through market-led strategies involving private builders, requiring consent from 70% of residents and allowing them to select builders.
While the scheme aimed to make Mumbai slum-free, many projects have stalled due to unqualified builders, political and criminal interference, and issues surrounding eligibility. Many of those relocated to transitional housing have been left waiting for rehabilitation due to stalled projects.
To address these challenges, a new policy focusing on reform, institutional intervention, and public-private partnerships was developed. This includes involving various government agencies, like MHADA and MMRDA, to take over and complete stalled projects. As of 2024, about 228 stalled projects have been assigned to government agencies for completion, potentially benefiting 218,000 residents.
Additionally, in cases where determining beneficiary eligibility has been problematic, huts occupied before January 1, 2011, have been deemed eligible. The policy also addresses the practicalities of hut ownership transfers and previous rent arrears approaching Rs 1,400 crores by 2024, with efforts being made to recover some amounts.
These initiatives demonstrate significant efforts to resuscitate long-stalled projects and ensure that eligible residents receive their homes, combining government oversight with the necessary involvement of capable builders to complete the rehabilitation process effectively.
