In a bid to revive the 380 dead slum redevelopment projects, the Slum Rehabilitation Authority (SRA) will soon roll out an amnesty scheme. Under it, financial institutions (FIs) like non-banking financial companies (NBFCs) and other companies who have invested and SRA projects that are dead or stuck will be able to redevelop projects without any major penalty, and with easy clearances.
A recent SRA review report revealed that 380 SRA projects have been stuck or dead since 2005. These have not taken off and are stuck at various stages of development, and in many cases slum dwellers who have been evicted are living on rent.
The SRA had also begun issuing notices to developers who have failed to start their projects even after getting approvals from the SRA. According to data, there are currently around 2,200 ongoing SRA projects in the city where slum schemes have been submitted; around 1,600 schemes have already received a Letter of Intent (LOI).
Housing minister Jitendra Awhad said that under the amnesty scheme, FIs that are not on the SRA’s record but who are investors in SRA projects will be given a chance to complete projects, giving a priority to competition of the rehabilitation component.
“In these dead projects, around Rs 35,000 crore is stuck of the legitimate FIs. Developers who took money from FIs have failed to deliver the projects. The amnesty scheme will help slumdwellers get homes and also help FIs recover their money. This will also give a push to the housing market. Once approved by the CM, the scheme will be rolled out,” Awhad said.
Officials said that under the amnesty scheme, FIs approved by the Reserve Bank of India (RBI) and the Securities Exchange Board of India (SEBI) can develop dead projects. “The FIs that have already invested in projects will be notified as joint developers and they will nominate a new builder. FIs will be exempted from paying a 5% premium for change of developer. FIs will be invited to submit applications for opting to develop dead projects within 45 days of the scheme being launched. No action will be taken by SRA under Section 13(2) against FIs that deliver the projects. No fresh consent or approval will be required. FIs will have to complete the rehabilitation portions in 1-3 years from when they take over and they will not be changed in this time,” said a senior official.
An official said that many of the projects are stuck at various stages: “Many projects are stuck due to a financial crunch; also due to lack of permissions from various agencies including central government departments, like Civil Aviation Authority, Environment and Forests, and Ministry of Defence.”
