In a decisive move to tackle malpractice within the Slum Rehabilitation Authority (SRA) scheme, the authority has taken stringent action against builders accused of exploiting slum residents through inflated rent demands. This crackdown has led to the successful recovery of INR 700 crore from these errant builders.
The SRA’s rehabilitation scheme is designed to provide secure housing to slum dwellers, who are temporarily relocated and compensated with rent payments while their shacks are demolished and rebuilt. However, numerous builders have defaulted on these payments, prompting the SRA to launch a vigorous rent recovery initiative. To address these grievances, 25 nodal officers were appointed last year to oversee the collection of overdue rents.
In a bid to enforce compliance and mitigate further complaints, the SRA has introduced stricter regulatory measures. Builders are now mandated to deposit two years’ worth of advance rent via Demand Draft (DD) and the third year’s rent via cheque when commencing new projects under the scheme. This policy aims to prevent delays and ensure that financial obligations to displaced residents are met.
As of July’s end, builders have deposited over INR 700 crore in arrears and advance rent. These funds are currently being distributed to affected slum dwellers, significantly reducing the number of rent-related complaints, according to SRA officials. The authority’s robust measures have proven effective in addressing the longstanding issue of unpaid rents.
Furthermore, the SRA has taken additional steps to enhance transparency and accountability. Builders who fail to adhere to the payment requirements now face severe repercussions, including disqualification from securing future projects. To streamline the complaint process, an online system for reporting rent issues has been launched, allowing slum residents to easily flag problems.
