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Mumbai: SRA scraps 517 projects proposals submitted before 2014 for lack of progress for want of completion of formalities by developers

These projects have been stranded for a long time as the developers, despite getting letters of intent, have either walked out of the projects or failed to complete them even after getting funds from the banks and financial institutions.

Sanjay Jog | Updated on: Thursday, April 21, 2022, 08:59 PM IST

Mumbai: SRA scraps 517 projects proposals submitted before 2014 for lack of progress for want of completion of formalities by developers | Representational Photo
Mumbai: SRA scraps 517 projects proposals submitted before 2014 for lack of progress for want of completion of formalities by developers | Representational Photo
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  • The concerned organizations will have to submit a fresh proposal by appointing new developers

  • Another 200 projects without any development in the last 5 years will also be cancelled for a fresh start

  • In all 380 stranded slum rehabilitation projects to be covered under the Amnesty Scheme

  • After CM's recent review, these projects are proposed to be put under fast track for time bound implementation

The Maha Vikas Aghadi government, in a bid to put the slum rehabilitation projects on the fast track, has scrapped 517 such projects which were accepted by the Slum Rehabilitation Authority (SRA) before 2014 but there has been no progress for want of completion of necessary formalities by the developers. In the second phase, the SRA will cancel another 200 slum rehabilitation projects which remained incomplete. In the third phase, the SRA will include another 380 stranded slum rehabilitation projects under the Amnesty Scheme. These projects have been stranded for a long time as the developers, despite getting letters of intent, have either walked out of the projects or failed to complete them even after getting funds from the banks and financial institutions.

As a beginning, the SRA has issued a notice declaring the cancellation of 517 slum rehabilitation projects proposed across Mumbai. SRA had accepted these proposals for rehabilitation between 2002 and 2014 submitted by the organizations/societies formed by the tenants by roping in architects and developers. However, these projects did not take off as the developers had not completed the stipulated formalities required.

As per SRA’s notice issued on April 20, the concerned organizations/ societies will have to appoint new developers and submit fresh proposals in a bid to kick start those projects. The new developer will have to pay rent to the tenants and it will be mandatory to complete the slum rehabilitation projects in a specified timeframe.

A senior SRA officer told the Free Press Journal that ‘’SRA will examine the fresh proposal submitted by the individual organization/society for 517 projects and give its approvals so that the projects can be completed in a time-bound manner. The SRA has swung into action after the Chief Minister Uddhav Thackeray on April 8 reviewed the present status of slum rehabilitation projects and instructed to take necessary steps for their completion.’’ He clarified that in these 517 projects, the developers after the consent of the tenants had submitted the proposals to the SRA but they were neither approved nor were given a letter of intent as the developers did not complete the necessary paperwork.

Further, SRA will soon come out with another notice scrapping another 200 slum rehabilitation projects which failed to make any progress in the last five years. Under this category, the developers have completed the necessary procedures and received a letter of intent but failed to complete them. In such projects too, the concerned organizations/societies will have to bring in new developers. These projects can be undertaken by a special purpose vehicle to be formed jointly by the SRA and the Maharashtra Housing and Area Development Authority.

As far as the Amnesty Scheme is concerned, about 380 slum rehabilitation projects can be undertaken. As reported by the Free Press Journal, under the Amnesty Scheme, the financial institutions (FIs) approved by the Reserve Bank of India and the Securities Exchange Board of India would be allowed to complete rehabilitation projects in limbo. In the case of FIs that have already provided funds for the implementation of slum rehabilitation projects, they will be notified as joint developers. RBI- and SEBI-approved FIs will be exempted from the payment of a 5 per cent premium. The SRA, under the amnesty scheme through advertisements in leading newspapers, will invite applications from the FIs, which will have to submit these in 45 days to take up stalled projects. The FIs will have to complete the rehabilitation portion of the projects in a specified timeframe.

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Published on: Thursday, April 21, 2022, 08:59 PM IST