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Maharashtra legislative assembly clears amendment to slum improvement and redevelopment Act

Maharashtra legislative assembly clears amendment to slum improvement and redevelopment Act

Time of India09-07-2025
Mumbai: The legislative assembly on Wednesday passed the amendment bill to the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, allowing the Slum Rehabilitation Authority (SRA) to recover pending transit rent dues from developers by attaching not only the company's property, but also personal properties of the directors/partners, if required.
Since the outstanding rent will be considered as arrears of land revenue, the SRA will be able to attach and sell the builder's property to provide rent to slumdwellers.
The bill was introduced by Shiv Sena minister Shambhuraje Desai.
The bill also reduces the window for dissenting slumdwellers to join SRA schemes from 120 days to 60, after more than 50% of the slumdwellers have consented to the redevelopment plan. After the 60-day period, those who do not join the SRA scheme risk losing their claim to on-site rehabilitation units and may be considered for relocation elsewhere, as per availability.
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Officials said that state govt has various legal processes to recover these arrears, including serving notices, attaching property, and even imprisonment of the defaulter. "Under the Maharashtra Land Revenue Code, govt can attach and sell the defaulter's movable and immovable property to recover the dues. In some cases, bank accounts or lockers of the defaulter may be attached. Right now, the SRA can only issue stop-work notices to the builder for not paying rent or stop giving new permissions, but beyond that, there is no deterrent of any kind, and because of this, builders do not pay rent," an official said.
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