Dubious provision under the scanner

In order to crack down on the nexus between the Slum Rehabilitation Authority (SRA) officials and builders, the state government in future may not initiate any projects under the controversial and less known 3K (1) category of the Maharashtra Slum Areas Act 1971. This provision is under which the SRA allows the builders to not take consent of tenants for redevelopment and the state government directs the SRA to hand over the slum land for redevelopment to a particular builder without inviting tenders under the Act.

The 3K (1) category is used for cluster development, which involves redevelopment of larger plots into townships. Currently, four projects of cluster development under the 3K (1) category are underway at Golibar Maidan in Santa Cruz, Wadala, Jijamata Nagar in Worli and at Hanumannagar in Kandivali.

“We have many times received proposals from private developers to undertake projects under the 3K (category) Act, but somehow the housing department and the chief minister are of the view that it is a controversial Act and snatches the rights of the tenants,” said a senior bureaucrat of the state government.

“Also, the chief minister is of the view that SRA officials by giving permissions for the 3K (1) cluster development project are forming nexus with builders and giving them preference. The chief minister has discussed the possibility of floating tenders and involving multiple builders for 3K cluster development project, but somehow such provisions are not available in the 3K (1) category of the Maharashtra Slum Areas Act 1971. The CM does not want any monopoly as it leads to exploitation of the tenants,” he added.

For example, the proposal by chief minister gave power to tenants of floating tenders and later selecting multiple builders for projects, also considering which is giving the best offer in terms of the ratio of additional area offered in redevelopment, added the bureaucrat.

However, according to the provision of the 3K (1) category, the SRA allows builders to approach the housing department with a proposal of development, which is further approved and the SRA is directed to issue a consent letter to the builder. In other various SRA schemes it is mandatory to seek 70 per cent of the residents before submission of proposal for any development, but in case of 3K (1) it is not.