In a 1st, SRA starts freezing builders’ sale flats to secure tenants’ rent

Mumbai: After asking developers to deposit an advance rent of two years for slum dwellers in their projects, the Slum Rehabilitation Authority (SRA) has begun ‘freezing' flats from the sale component equivalent to three years of rent till builders hand over new homes to eligible slum dwellers. This early-stage freezing of sale flats is being done to secure rent payments and permanent homes to eligible slum dwellers, said SRA officials. This is the first time that the SRA is freezing flats or commercial units from sale buildings so that developers don't default on slum dwellers' rent.SRA earlier asked builders to deposit advance rent of two years and later passed it on to slum tenants."Developer's liability towards transit rent…obligations is required to be adequately safeguarded. Accordingly, freezing of appropriate sale components and timely communication of such restrictions to statutory authorities is mandatory. While issuing IOA / Amended IOA of Composite/Sale Buildings / LOI / Revised LOI, the concerned executive engineer shall ascertain and compute the developer's transit rent liability for a period of 3 years, considering number of eligible slum dwellers, monthly rent payable and applicable annual increment. Based on the computation and ready reckoner valuation, SRA shall identify, earmark and mark specific sale flats/sale areas to be frozen, generally from the lower floors, as security towards transit rent," an SRA circular stated.SRA CEO Mahindra Kalyankar, who is pushing policy reforms in SRA, said pending rent was one of the major problems faced by slum dwellers, but so far, SRA had collected over Rs 1,000 crore in rent and disbursed most of it.Kalyankar said that as part of the growth hub project, the agency is now working towards the target of delivering 5 lakh plus homes till 2030. "SRA has introduced several reforms to fast track projects. We have given a big push to collect all pending rent from builders so that slum dwellers don't suffer. While the SRA is fast tracking slum redevelopment, we are focusing on slum tenants, making sure they get their dues and projects are completed on time. We have made several policy interventions for this and the recent amendments are a step in this direction," said Kalyankar."The developer shall be directed to submit a written undertaking/affidavit that: the said flats shall not be sold, transferred, mortgaged or encumbered till completion of rehabilitation, allotment of permanent accommodation to eligible slum dwellers, and complete clearance of transit rent and related dues," the circular stated.