SRA homes can be sold, but there's a catch

Buyer and seller will be debarred from future transactions of such flats; the buyer should be a domicile of the state and not own any other home in the city

Caught between demands to allow sale of homes built by the Slum Rehabilitation Authority (SRA) under the slum rehabilitation schemes SRA and its overall impact on the concept of redevelopment of slums, the state has chosen a middle path.

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The new guidelines, issued by SRA and approved by the state government, say that both the seller and the buyer of the SRA dwellings will be debarred from buying or selling of such homes in future. The rules also state that the person or family intending to buy an SRA apartment should be domiciles of the state and should not own a house within the limits of the Brihanmumbai Municipal Corporation (BMC).

The set of comprehensive guidelines, a copy of which is with this newspaper, is now applicable for the sale of houses that are allocated free of cost to slum dwellers under the slum rehabilitation schemes approved by the SRA. The guidelines issued last month are in response to the Bombay High Court’s directives delivered while hearing a writ petition. The court had asked the authorities to formulate a policy so that benefactors through the SRA schemes do not use to earn huge profits by selling the homes at the sky-high market rates.

Since the sellers stand to earn a handsome price for the flats, as per the current market prices, the state shall extract a premium share from the transaction. This will be known as a transaction fee and will be made binding in the registration of the documents of sale. The fee will be equal to the maximum stamp duty on the property, or Rs 1 lakh, whichever is more. For industrial and commercial tenements, the cap for transfer fee will be Rs 2 lakh and Rs 3 lakh respectively.

The guidelines are similar to that of applying for MHADA homes. The buyer will have to submit a domicile certificate for acquiring an SRA flat. He or his family members should not own a house within BMC limits. After buying a house in an SRA building, the buyer or the original seller will not be entitled to make any more transactions in any SRA project. They will not be able to apply for a new home under any other government scheme, too.

Similar to conditions applicable in MHADA, the buyer will have to be from economically weaker sections (EWS), lower income group (LIG) or middle income group (MIG). The sale deed will be in the name of both husband and wife, wherever applicable. No partnership firms or organisations will be allowed to purchase SRA homes.

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