SRA to financially scrutinise builders

Builders involved in slum rehabilitation projects under Slum Rehabilitation Authority (SRA) schemes will be thoroughly financially scrutinised before the SRA allows them to rehouse slum dwellers living in slums built before January 2000. The state government’s move aims to solve problems that arise after builders stop paying rent to tenants whose projects are undertaken for redevelopment and smoothen the redevelopment process.

Minister of state for housing Ravindra Waikar said, “We are now looking to financially scrutinise the builder before handing over any project of redevelopment under the SRA scheme. There are times when private builders stop paying rent to tenants whose projects are taking for redevelopment because they themselves go bankrupt. This affects both the redevelopment process and also financially affects tenants who are not paid the amount of rent, which they are supposed to get.”

SRA schemes allow private builders to rehouse slum dwellers living in slums built before January 2000. The builder constructs high-rise on a portion of the said plot which the slum dwellers had occupied. In return, builders are granted higher floor space index (FSI) as incentive to commercially exploit additional flats built after rehabilitating slum dwellers. FSI refers to the ratio of the extent of construction on a given plot area.

National President, NAREDCO, Sunil Mantri, said, “These type of rules and regulations will not motivate builders to take up projects under SRA schemes. The government should concentrate on ‘ease of business’ instead of creating more hurdles for the real estate sector.”

SRA scheme was launched in 1995 with the objective to rehabilitate 8 lakh families in five years however it has still not managed to meet the target and continues to be mired in controversy.

Chief executive officer, SRA, Aseem Gupta, held a press conference on Friday claiming to rehabilitate 11 lakh families via SRA schemes in the next five years.

Meanwhile, real estate expert, Ajay Chaturvedi, said, “There are many builders in the city who, in spite of being financially stable, have held SRA projects. What will SRA do if even after financially scrutinising builders, they halt projects. Builders are notorious for doing things their way.”