Maharashtra government has passed an amendment to the Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. The new provision empowers the Slum Rehabilitation Authority (SRA) to initiate legal proceedings to recover unpaid transit rents from defaulting developers, treating such dues as arrears of land revenue under the Maharashtra Land Revenue Code (MLRC).
The legislation, passed in the state Assembly this week, is expected to close a long-standing loophole that allowed developers to delay or deny transit rent payments to eligible slum dwellers during the redevelopment phase. The amendment confers revenue recovery powers to the SRA, enabling it to attach the movable and immovable assets of defaulting builders. If sufficient assets are unavailable within the developer’s firm, the recovery process may extend to individual directors or promoters responsible for the project. Transit rent is a crucial component in slum redevelopment, offering temporary accommodation support to residents displaced due to construction activity. In numerous cases across Mumbai and other urban centres, builders have failed to uphold their obligations, causing financial distress to affected families. This has been a major cause of stalled or delayed SRA projects.
Urban policy experts have welcomed the move as a much-needed intervention to restore trust in the SRA mechanism and accelerate ongoing redevelopment works. By shifting enforcement under the MLRC, the amendment brings transit rent defaults on par with revenue dues to the state, increasing the legal enforceability of such claims. Officials say the measure will not only protect residents but also encourage more disciplined participation from private developers, aligning with the state’s broader vision of equitable urban housing and sustainable redevelopment.
The new law is also seen as a progressive step in upholding citizens’ rights to dignified housing, particularly in high-density urban settlements. It reflects the state’s commitment to transparent, accountable urban governance, especially in the context of vulnerable communities awaiting resettlement.
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