Mumbai: In a major crackdown on rent defaulters among developers, the Slum Rehabilitation Authority (SRA) collected a total of Rs 1,386 crore over the past three years from builders who had delayed or defaulted on rent payments to slumdwellers awaiting rehabilitation. This includes Rs 601 crore recovered under regular schemes, Rs 134 crore under an amnesty initiative, and Rs 650 crore collected as advance rent under a recently issued circular mandating builders to deposit two years’ rent in advance.
₹279 Crore Dues Outstanding
As per SRA data, of the Rs 880 crore rent dues under regular schemes, Rs 279 crore remains outstanding. Meanwhile, under the amnesty scheme, dues have come down from Rs 501 crore to Rs 367 crore, covering 23 redevelopment projects. The data was made public shortly after the Maharashtra legislature passed an amendment to the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, which gives the SRA sweeping powers to recover pending rents through property attachment and sale, even targeting assets of company directors or partners.
SRA CEO Mahindra Kalyankar welcomed the amendment, stating it would help accelerate pending slum rehabilitation projects and ensure timely compensation to slum tenants. “We have given a big push to collect all pending rents from builders so that slumdwellers don’t suffer. SRA is not only focused on fast-tracking redevelopment but also ensuring that slum tenants get what they are entitled to. Several policy changes have been made to safeguard tenant interests, and this amendment is a crucial step forward,” he said as quoted by The Times of India.
According to officials, once the amended Act is enforced, the government will gain stronger legal mechanisms to recover arrears. These include serving recovery notices, attaching and auctioning movable and immovable assets, and even taking punitive action like imprisonment for persistent defaulters. Currently, SRA’s powers are limited to issuing stop-work notices or withholding further permissions for errant builders, which officials say has proven to be an inadequate deterrent.
“Under the Maharashtra Land Revenue Code, the government will soon be able to recover dues as land revenue arrears. This includes attaching properties, freezing bank accounts or lockers of builders, and taking further action if necessary,” an official confirmed.
