State proposes higher corpus fund for SRA high-rises

Mumbai's urban development plans to raise SRA project corpus funds significantly, increasing per-flat contributions to enhance safety in high-rises.

MUMBAI: The state urban development department (UDD) has proposed a steep increase in corpus funds for Slum Rehabilitation Authority (SRA) projects and is set to amend the Development Control and Promotion Regulations (DCPR) 2034 to make the changes effective.

State proposes higher corpus fund for SRA high-rises

Currently, every flat in an SRA project is entitled to a ₹40,000 corpus. Under the new proposal, flats in towers up to 70 metres will receive ₹1 lakh each, those in towers between 70 metres and 120 metres will get ₹2 lakh, while residents of towers above 120 metres will get ₹3 lakh per flat.

SRA chief executive officer Mahendra Kalyankar said the revision was essential to improve safety standards in high-rises. “Residents often complained that the earlier corpus was inadequate. Maintenance of lifts, fire-fighting systems and other critical equipment suffered, compromising safety. The proposed increase is meant to ensure that these provisions are properly managed,” he said.

The UDD will also amend Clause 9.1 of Regulation 33(10) of the DCPR. As per the draft, developers will only be granted building permissions for the last 25 per cent of their free-sale component after depositing the entire corpus amount with the SRA. The contribution will also cover facilities such as welfare halls, balwadis and transit tenements, and must be deposited before an occupation certificate (OC) is issued.

Architect Suyog Shet welcomed the move, noting that developers are already mandated to maintain electro-mechanical equipment for 10 years in towers above 32 metres. “The corpus hike is justified when you consider inflation. In 1998, the corpus was only ₹20,000 per flat. While the increase is welcome, the government must clearly explain the rationale to avoid disrupting business dynamics of SRA schemes,” he said.

Industry voices, however, warned of a ripple effect. Niranjan Hiranandani, chairman of the National Real Estate Development Council, cautioned that higher costs would ultimately be passed on to homebuyers. “Redevelopment is becoming increasingly expensive. The free-sale component will bear the brunt, pushing up prices and making affordable housing in Mumbai even more difficult,” he said.

The government has called for objections and suggestions on the draft notification before finalising the amendment.

Dominic Romell, past president of Maharashtra Chamber of Housing Industry said, “We will make a suggestion not to charge so much. We are already paying for lifts, infrastructure and pay infra charges.’’