The order came in a writ petition filed by Vijay Namdev Gujar and others, slum dwellers rehabilitated under DCPR 2034 Regulation 33(10), who have not received transit rent for nearly four years.

HC Pulls Up Developers; Says “Legitimate Transit Rent Must Be Paid Immediately”

The petitioners said that while transit rent was paid until 2021, the developer stopped payments thereafter. The developer appeared in court and agreed to pay all legitimate dues. The High Court, however, pressed for strict accountability.

The bench of Justice G.S. Kulkarni and Justice Aarti Sathe directed:

• The Slum Rehabilitation Authority (SRA) must hold a personal hearing within two weeks and determine the exact arrears and the applicable interest.
• Once decided, the developer must immediately disburse the transit rent, either directly or by depositing it with SRA within one week.

Section 33B: Transit Rent Dues Recoverable as Arrears of Land Revenue

The Court highlighted the new Section 33B, which makes it mandatory for SRA to enforce recovery of unpaid transit rent. Crucially, the section includes a first-of-its-kind personal liability clause:

• If the developer company/LLP does not have enough assets,
  the unpaid transit rent can be recovered from the personal property of its directors or partners.

This is the strongest legal mechanism introduced so far to protect slum dwellers from delays and non-payment.

Court Directs SRA: Transit Rent Complaints Must Be Resolved in 15 Days

Expressing sharp displeasure at the growing number of complaints reaching the Court instead of being resolved by SRA, the bench noted:

• Delay in transit rent payments violates the Right to Shelter under Article 21.
• SRA officers cannot allow complaints to remain pending.
• Any transit rent complaint must be decided within 15 days, failing which it will be treated as a breach of fundamental rights.
• SRA CEO must issue a circular directing all competent officers to follow these timelines.

The Court cautioned that if SRA officers continue to show laxity, the Court will take strict action.

Developers Cannot Divert Transit Rent Funds, Says Court

The Court strongly criticised the practice where some developers take up projects but divert funds meant for transit rent towards other uses.

The judges noted:

Developers cannot undertake the scheme, not pay transit rent, and utilise the money elsewhere, depriving slum dwellers of their legitimate dues.

Why This Order Matters for Slum Dwellers Across Mumbai

This judgment is significant for tens of thousands of slum dwellers living in transit accommodation. Key takeaways:

• Transit rent must be paid on time, without exception.
• Developers cannot escape liability by hiding behind corporate structures.
• Personal assets of directors/partners are now at risk if dues remain unpaid.
• SRA is obligated to act swiftly and cannot delay complaints.
• Protects the constitutional right to shelter, ensuring slum households are not financially abandoned.

Also Read: 35% Green Space Now Mandatory in Mumbai’s SRA Projects

The post Transit Rent Default Can Cost Builders Their Personal Assets, Bombay HC Signals in Strong Order appeared first on Square Feat India.

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.”

Also Read: Rent for slum dwellers sparks political controversy

The post Developers divided on Govt fixing rent for slum projects appeared first on Square Feat India.