Sale of SRA homes: politics might win, scheme will be defeated

November 12, 2021November 12, 2021 Ravikiran Deshmukh Balasaheb Thackeray, BJP, BMC, Bombay High Court, CIDCO, Congress, Housing, Maha Vikas Aghadi, Maharashtra, Mhada, MMR, MMRDA, Mumbai, NCP, Prithiviraj Chavan, Sharad Pawar, Shiv Sena, slum, SRA

At a time when the state is agog with the full-blown political war of words unleashed between Maha Vikas Aghadi (MVA) and BJP leaders over the action taken by Narcotics Control Bureau (NCB) against Bollywood actor Shah Rukh Khan’s son Aryan Khan, a very crucial issue is going unnoticed. The issue, which may get the final stamp of approval by the state government, pertains to the sale of rehab homes under schemes approved by the Slum Rehabilitation Authority (SRA).

It’s going to be an amendment to the earlier decision- made in 2013 by the then Congress-NCP government that allows the sale and transfer of SRA homes after 10 years to the possession. The state cabinet subcommittee, appointed to work on the issue, is in favour of allowing the sale of the dwelling after five years to the demolition of the slum.

Politically crucial issue

Slum pockets in Mumbai Metropolitan Region (MMR), are political nerve centers- a vote bank that decides the fate of civic bodies in Mumbai, Thane, and adjoining areas, besides the state assembly and Lok Sabha constituencies. The en bloc voting is hugely sought after by all the political parties which come only after protecting the slum pockets.

With the noble intention of providing a decent living to slum dwellers who refuse to vacate their shanties constructed on the encroached pieces of land, the state government under Shiv Sena-BJP rule decided to set up the Slum Rehabilitation Authority (SRA) in 1995. It was conceived by late Shiv Sena chief Balasaheb Thackeray who first demanded it during the Congress rule in 1991. He had personally handed over a representation to the then chief minister Sharad Pawar.

Gradually, the focus of the scheme turned towards developers instead of the slum dwellers. The high component of the floor space index (FSI) offered for rehabilitation of the slum dwellers, and permission to use it anywhere in Mumbai made developers’ lobby jump onto the scheme. Soon after the scheme took off, demands began pouring in to allow the sale of rehab homes. It was noticed that the sale and transfer of the dwellings were rampant through power of attorney (PoA) since it was officially prohibited. Accordingly, a policy was devised in 2013 to allow the same with certain conditions.

State wants to bypass court orders

Now the policy is revised following a few court cases where it was pointed out that a large number of homes were sold without valid permission. A survey revealed that 13,000 houses were transferred to new owners. And when the Bombay High Court directed the state government to take possession of such homes where genuine slum dwellers were not staying, revision of the policy came in. The cabinet sub-committee, which was appointed to look into the issue, has taken a liberal view to allow the sale of homes after 5 years to the demolition of the slums.

The earlier policy devised in 2013 dwelt at length on the issue saying, section 3 (e) of the Maharashtra Slum Act (1971) and the provisions of paragraph 1.18 of the Development Control Rules 33 (10) restrict the transfer of homes and flats in the rehabilitated building. These homes and flats are prohibited from being sold, exchanged or leased or otherwise transferred within 10 years from the date of allotment. However, after 10 years, the transfer could be allowed with the permission of SRA as per the procedure.

Policy of 2013

While hearing a matter, the Bombay High Court had then directed the SRA to devise a procedure in consultation with the state government. Accordingly, in 2013, the government led by Prithviraj Chavan approved the procedure. In doing so, it was made clear that if a beneficiary sells the SRA home, its price will be fixed at the market rate. Also, the land on which the house and building stand is owned first by the state government and then by the SRA. Therefore, the levy of transfer fee payable to the state government became imperative.

The conditions laid down for the sale of homes said –

The buyer of such a house must be a resident of Maharashtra.
The buyer or his family members should not have a house in their name within the limits of Brihanmumbai Municipal Corporation (BMC).
The buyer or his spouse must not be a beneficiary of a housing scheme of the state government undertaking (such as CIDCO, MHADA, MMRDA, etc.) within the limits of BMC.
The Aadhaar number of the buyers and sellers of SRA homes will be recorded and neither of them will be able to buy SRA homes again. They will not be able to apply for a dwelling from a scheme by the state undertaking.
The transfer fee from Rs. 1 lakh to Rs 3 lakh will be levied on the sale of an SRA home, industrial or commercial premises.
An important condition was that the person buying the SRA home should be from a low, marginal, or middle-income group. The transfer will be made in the joint names of the spouses.
Residential flats can be purchased for residential use only and non-residential space only for non-residential use. Usage cannot be changed.
The flat will be sold to an individual for his / her own or family’s residential / non-residential use. No purchase can be made to a partnership organization, company, or other organization or group of individuals. An NoC by the co-operative housing society will be mandatory.

Against the backdrop of these terms and conditions, all eyes will be on the new recommendations made by the cabinet sub-committee when it wants to allow the sale after 5 years to the demolition of the slum. This policy will no doubt be a politically sensitive issue in the run-up to the forthcoming municipal elections.

Salient features of SRA

Slum Rehabilitation Proposal received by SRA till 31st October 2019 – 2137
Proposals stayed due to non-commencement of work or non-submission of documents – 432
Of the remaining 1994 proposals, 1609 proposals have been duly approved from which 5 lakhs 8,646 homes are expected to be constructed. Out of them, a commencement certificate was given for the construction of 2 lakh 60,000 homes. Occupancy Certificate (OC) has been issued to 2 lakh 14521 homes.

At this rate, one can imagine how long it will take for 4 million slum dwellers to get houses. At the same time, the number of families living in slums had gone up from 8 lakh to 12 lakh. Now the number of members in these families must have increased. Then one can imagine the speed of the construction of SRA homes and the real need.