The order, issued on 8 January 2026 (SRAEDIOW/118), reiterates and consolidates earlier directions under SRA Circular Nos. 209, 210 and 231, and comes in compliance with repeated observations of the Bombay High Court regarding misuse of sale components by developers and non-payment of transit rent to slum dwellers.

Why the order matters

SRA has observed that in several redevelopment projects, developers monetize sale flats early while transit rent liabilities, PAP (Project Affected Persons) and PTC (Project Tenant/Commercial) obligations remain unsecured, leading to hardship for eligible slum dwellers.

To address this, the Engineering Department has now been directed to ensure that sale components are frozen upfront, treated as security, and clearly disclosed to regulatory authorities.

Key directions under the new order

1. Mandatory freezing of sale flats at IOA / LOI stage

At the time of issuing:

• IOA or Amended IOA
• LOI or Revised LOI

the concerned Executive Engineer (EE) must:

• Calculate the developer’s transit rent liability for at least three years, considering:
  • Number of eligible slum dwellers
  • Monthly transit rent
  • Annual increment
• Based on this liability and Ready Reckoner valuation, identify specific sale flats or sale area, generally from lower floors, to be frozen as security.

The frozen flats must be:

• Clearly marked on approved plans
• Specifically mentioned as a condition in the IOA / LOI

2. Absolute restriction on sale, mortgage or transfer

Developers must submit a written undertaking/affidavit stating that frozen flats:

• Shall not be sold, transferred, mortgaged or encumbered
• Will remain frozen until:
  • Rehabilitation is completed
  • Permanent accommodation is allotted to all eligible slum dwellers
  • Entire transit rent and allied dues are fully paid

This obligation is in addition to existing requirements under SRA Circular No. 210.

3. Mandatory intimation to MAHARERA and Registration Authorities

In line with SRA Circular No. 209, SRA engineers must now formally communicate PAP, PTC and frozen-flat details to statutory authorities.

A certified copy of:

• Approved plans
• IOA / LOI
• Covering letter detailing:
  • PAP and PTC availability (wing-wise / building-wise)
  • List of frozen sale flats

must be forwarded to:

• Inspector General of Registration & Controller of Stamps, Maharashtra
• Maharashtra Real Estate Regulatory Authority (MAHARERA)

The communication must clearly state that:

The identified flats are frozen under SRA directions and cannot be registered, sold, or shown as free-sale inventory until written clearance is issued by SRA.

4. Defreezing only after full compliance

Defreezing of sale flats will be permitted strictly as per SRA Circular No. 231, and only after:

• Completion of rehabilitation
• Allotment of permanent accommodation
• Full payment of transit rent and allied dues

Even then:

• Approved plans must be amended
• Prior approval of the Deputy Chief Engineer, SRA is mandatory
• Fresh intimation must again be sent to Registration Authorities and MAHARERA

Applicability

The order applies to:

• All ongoing Slum Rehabilitation Schemes
• All future SR projects

SRA officials have been directed to maintain proper records of computation, freezing and regulatory communication, making non-compliance attributable to individual officers.

Why this is a game-changer

This order significantly curtails the long-standing practice where developers sell flats without securing slum dwellers’ entitlements. By linking sale permissions directly to transit rent security, and by placing MAHARERA and registration authorities on notice, SRA has created a strong enforcement mechanism.

For homebuyers, it also serves as a warning: sale flats shown without SRA clearance may be legally frozen, even if marketed.

Bottom line

No security for slum dwellers, no sale flats for developers.
With this order, SRA has sent a clear message that rehabilitation obligations take precedence over monetisation.

Also Read: Need for immediate changes to DC Rules: Hafeez Contractor

The post SRA Tightens Grip on Sale Flats: Mandatory Freezing at IOA Stage to Secure Transit Rent and Slum Dwellers’ Rights appeared first on Square Feat India.