Mumbai News: SRA Sets Up 3 Special Cells To Resolve Transit Rent, Housing Disputes After Bombay HC Push

Mumbai, Dec 23: The Slum Rehabilitation Authority (SRA) informed the Bombay High Court on Tuesday that it has constituted three Special Cells in the city to handle disputes regarding non-payment of transit rent, non-allotment of alternate accommodation and illegal occupation of permanent tenements by unauthorised persons.

The Special Cells — Mumbai City, Eastern Suburbs and Western Suburbs — were constituted pursuant to High Court directions issued last week, noting that almost every matter related to slum rehabilitation schemes reaches the court. The circular for the same was issued on December 22.

HC Emphasises Sensitive And Time-Bound Resolution

Lauding the approach, the High Court emphasised that grievances of slum dwellers relating to transit rent and allotment of permanent tenements must be addressed sensitively and in accordance with law. It added that the Special Cells should resolve such disputes in a “cordial and time-bound manner, preferably through mediation rather than adversarial proceedings”..

67 Petitions Highlight Widespread Issues

A bench of Justices Girish Kulkarni and Aarti Sathe was hearing nearly 67 petitions filed by several slum dwellers who alleged that developers had failed to pay transit rent for over two years.

The court noted that more than 100 similar petitions are pending, raising issues such as non-payment of rent, deniaLl of permanent tenements to eligible beneficiaries, and illegal occupation of redeveloped flats meant for slum dwellers.

Court Stresses Non-Mechanical Decision Making

The court observed that while the methodology for payment of transit rent is already laid down in SRA circulars, grievances continue to arise. It expressed hope that the Special Cell would address complaints “in accordance with law and the facts of each case, and not mechanically”.

The judges underlined that officers manning the cell must be “alive to the needs of stakeholders,” particularly when issues directly affect slum dwellers and their “right to shelter under the Constitution”.

Role Of Special Cell Clarified

Clarifying the role of the Special Cell, the court said it is not meant to act as a full-fledged adjudicatory body. Instead, issues should be considered and resolved “in a cordial manner”, with an endeavour to arrive at amicable solutions. However, the court added that the cell must still pass reasoned orders, backed by the SRA circulars, so that “legal expectations are addressed”.

Litigation Rights To Remain Intact

The bench made it clear that access to litigation cannot be curtailed. Even after the cell’s decision, parties would be free to pursue statutory remedies. At the same time, the court stressed that the cell should function in a manner that reduces, rather than fuels, further litigation.

In this context, it suggested that the SRA CEO consider training members of the Special Cell in mediation practices, noting that this aligns with the spirit of the Mediation Act, 2023. “The endeavour must be to curb litigation and bring about a win-win situation for all stakeholders,” the court said.

Strict Timelines For Disposal Of Complaints

Disposing of the petitions, the High Court permitted the petitioners to approach the Special Cell within two weeks by filing applications detailing their grievances. The cell has been directed to decide applications in a time-bound manner — within 15 days of filing, with a maximum extension of another 15 days for reasons to be recorded.

Focus On Permanent Housing And Evictions

On specific issues, the court directed that cases of non-allotment of permanent accommodation, eligibility under lotteries, and illegal occupation of tenements be taken up expeditiously, including eviction of unauthorised occupants. For non-payment of transit rent, SRA circulars and policy, including payment of interest, will apply.

Earlier Interim Orders And December 22 Circular

Earlier, on December 17, the court had passed stringent interim directions, including freezing 10–20 per cent of the free-sale component of defaulting developers and ordering action against illegal occupants.

Pursuant to this, the SRA informed the court that Special Cells have been constituted to deal with disputes relating to non-payment of transit rent, non-allotment of permanent tenements and illegal occupation of flats meant for eligible beneficiaries.

The December 22 SRA circular introduces stringent measures to ensure developers fulfil their obligations, particularly regarding transit rent and the rehabilitation of slum dwellers.

Key Provisions

Freezing sale component: To guarantee rent payments, the SRA will “freeze” a portion of the developer’s saleable area (lower floors) during the Letter of Intent (LOI) stage.

The quantity is based on the number of dwellers and a three-year rent cycle. If all units are already sold, a bank guarantee is required. Freezing and de-freezing of the sale area will be informed to the Registrar of Stamps.

Transit rent protection: Developers must pay two years of rent upfront and provide post-dated cheques for a third year. A Special Cell will adjudicate rent complaints within 15–30 days. Defaulting developers face recovery action under Section 33(B) of the Slum Act.

Accountability: Executive Engineers must oversee these processes and coordinate with the Registrar of Stamps. Any “false statements” by developers will be treated as perjury.

Enforcement: Unauthorised occupation will be dealt with through eviction actions under Sections 3(E) and 33, with strict bimonthly reviews by the CEO (SRA) to prevent dereliction of duty.

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Developers are barred from independently handing over rehabilitation tenements, and engineers will be held accountable, with bimonthly reviews by the Deputy Chief Engineer.

Special Cells will adjudicate complaints of non-payment of transit rent within strict timelines and initiate recovery under the Slum Act in case of default. Developers must pay two years’ transit rent upfront and submit post-dated cheques for one year. Fortnightly reviews and reports to the CEO (SRA) are mandated.

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