Maharashtra to re-allot stuck slum projects to new builders, move to help 40k families

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In a move that can potentially give relief to up to 40,000 families, Maharashtra is set to reallocate stuck slum redevelopment projects to new builders, a minister said on Thursday.

There are 520 such stuck projects where the developer who had availed the original residents' consent for redevelopment but not delivered on the promises and also stopped paying rent given in transit, the state's housing minister Jitendra Awhad said speaking at a conference organised by industry lobby Naredco.

He said the Slum Rehabilitation Authority (SRA), the government body regulating such projects, has cancelled 520 such stalled projects and will be handing over them to new developers after assessing their financial strength and commitment to take it to a logical end as part of the 'amnesty scheme'.

Awhad said such builders have raised money from financial institutions as well for such projects before disappearing and pegged the quantum of money which is stuck at Rs 35,000 crore.

The NCP leader said he is aware of builders who have not worked on projects for up to 10-15 years, scouting for developers to hand over the project and trying to make a quick buck. At the same time, he said newer slum development for gaining floor space index (FSI), which is adopted by many builders, will also not be tolerated.

Awhad also said that the state is looking at developing a 26-acre land parcel on which a slum stands in South Mumbai's Colaba, and will be looking to partner with realty developers for the same. Terrorists like Ajmal Kasab, who was part of the 26/11 conspiracy, had landed at the jetty next to the slum, Awhad said.

It was, however, not immediately clear how the state will be able to deliver on the promise, considering that the plot will fall under the coastal regulatory zone norms.

The minister also announced that developers redeveloping Mhada buildings will not have to pay stamp duty upfront, and will now be able to pay the sum in a staggered way till the occupation certificate is issued to a project.

The government is keen to increase the pace of project clearance and is working on digitisation and automation to make the entire process free of human intervention in the next six months, Awhad said.

The NCP minister also sought a quicker clearance for a Bill on cessed buildings development which has been stuck with the President of India after being passed unanimously by lawmakers in Maharashtra and wondered who would be responsible if one such structure were to collapse during the monsoon.

He also asked corporate entities like Tatas to come forward and develop a modern hospital on a 9,000 sq metre land parcel held by the state government on which it plans to have a healthcare facility.

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