Maharashtra will re-allot stalled slum projects to new developers.

Maharashtra is set to reallocate stuck slum redevelopment projects to new builders in a move that could benefit up to 40,000 families, a minister said on April 28.

Jitendra Awhad, the State Housing Minister, stated at a conference organised by industry lobby Naredco that there are 520 such stuck projects where the developer obtained the original residents’ consent for redevelopment but did not deliver on the promises and also stopped paying transit rent.

He stated that the Slum Rehabilitation Authority (SRA), the government body in charge of such projects, has cancelled 520 such stalled projects and will hand them over to new developers after evaluating their financial strength and commitment to see them through to completion as part of the ‘amnesty scheme.’

According to Awhad, such builders have raised funds from financial institutions for such projects before disappearing, and the amount of money is estimated to be Rs 35,000 crore.

According to the NCP leader, he is aware of builders who have not worked on a project in up to 10-15 years, looking for developers to hand over the project and make a quick buck. Simultaneously, he stated that newer slum development for the purpose of gaining Floor Space Index (FSI), as practised by many builders, will be prohibited.

Awhad also stated that the state is looking to partner with real estate developers to develop a 26-acre land parcel in South Mumbai’s Colaba, where a slum currently stands. According to Awhad, terrorists such as Ajmal Kasab, a member of the 26/11 conspiracy, had landed at the jetty next to the slum.

However, it was not immediately clear how the state will be able to deliver on the promise, given that the plot will be subject to coastal regulatory zone norms.

The minister also announced that developers redeveloping Mhada buildings will no longer be required to pay stamp duty upfront, but will instead be able to pay the sum in instalments until the project’s occupation certificate is issued.

According to Awhad, the government is eager to accelerate project clearance and is working on digitisation and automation to make the entire process human-free within the next six months.

The NCP minister also requested a faster clearance for a Bill on cessed building development, which had been unanimously passed by Maharashtra lawmakers, and expressed concern about who would be held accountable if one of such structures collapsed during the monsoon.

He also urged corporate entities such as Tatas to come forward and build a modern hospital on a 9,000-square-metre plot of land owned by the state government and designated for a healthcare facility.