Developers divided on Govt fixing rent for slum projects
The developers community seems divided on the decision of government fixing rent for slum projects. While some developers say its good, some feel otherwise.
By Varun Singh
A few days ago, state’s housing minister Jitendra Awhad had announced fixed rent for various for slum dwellers payable by developers.
He gave three demographic categories under which rent shall be paid to slum dwellers by developers.
In Mumbai up to Bandra, the rent will be Rs 12,000 per month. It will be Rs 10,000 per month from Bandra to Andheri/Ghatkopar and Rs 8,000 per month beyond it.
This had already created a political controversy with the BJP threatening an agitation claiming it to be a favourable decision for developers.
BJP MLA Atul Bhatkhalkar had said, that the Rs 8,000 rent in suburbs is a move that wrongs slum dwellers.
Now developers are a divided house on this, for example some developers say fixing the rent isn’t a good ida.
Even reports suggest that Chief Minister Udddhav Thackeray might do away with the fix rent policy.
Manju Yagnik, Vice Chairperson, Nahar Group and Vice President NAREDCO (Maharashtra) said, “While it is still in the planning phase, the objective to fix the amount of rent paid for slum rehabilitation projects will not help in determining the actual market price. Earlier the state government had planned to fix the rent paid to slum dwellers living in transit during redevelopment between Rs 8,000 and Rs 12,000 per month. Slum redevelopment takes years for completion, so fixed rent is not a feasible thought as the cost of alternate accommodation keeps altering year on year, more so rent is location specific and varies from place to place in a city like Mumbai.”
While some developers say fixing rent is a good move as both developer and slum dwellers won’t be able to wrong each other.
Rohit Poddar, Managing Director, Poddar Housing and Development Ltd. said, “This is a very good rule. Alternative accommodation on rent is available at these rental bands in the micro market and it prevents the developer to pay less rent and it prevents the slum dwellers from extorting exorbitant rents from developers thereby making the project unviable.”