SRA initiates process to replace 33 developers for non-payment of rent

According to SRA officials, the violating developers have been defaulting on rent payments for anywhere from six months to 10 years

Mumbai: The Slum Rehabilitation Authority (SRA) has initiated measures to replace the developers of as many as 33 slum redevelopment projects across Mumbai for defaulting on rent payments worth anywhere between ₹12 lakh and ₹6.62 crore to the residents of 9,843 tenements. The cumulative default amount is ₹33,48,75,614.

According to SRA officials, the violating developers have been defaulting on rent payments for anywhere from six months to 10 years (Pic for representation/Satish Bate/HT PHOTO)

According to SRA officials, the violating developers have been defaulting on rent payments for anywhere from six months to 10 years. “We have initiated proceedings under section 13(2) of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, to get the defaulting builder removed and have another one in place to allow the stuck projects to move forward,” said an SRA official, requesting anonymity.

Section 13(2) of the Act empowers the chief executive officer of the SRA to terminate a developer’s agreement if they violate any approved plans, conditions, or specified timelines.

The SRA initiated the process to terminate agreements with defaulting developers based on complaints raised by slum residents, who were assured redeveloped homes within a certain number of years.

One such default case is the redevelopment of the Punjab Colony in Sion Koliwada, involving 1,444 slum tenements. “As per the rules, the builder is supposed to pay the entire two years of rent at one go. Instead, in our area, the developer has issued four post-dated cheques, each of them having rent for six months. This is a violation of the rules. Already, a hearing process is underway to ouster the company. An order is awaited,” said Mandeep Singh, a resident of Punjab Colony.