SRA to launch amnesty scheme to revive 380 stalled slum projects
Real Estate

SRA to launch amnesty scheme to revive 380 stalled slum projects

The Slum Rehabilitation Authority (SRA) will soon launch an amnesty scheme to revive 380 delayed slum redevelopment projects.

Under it, financial institutions (FIs) like non-banking financial companies (NBFCs) and other firms who have funded and SRA projects that are dead or delayed will be able to redevelop projects without any significant penalty, and with easy approvals. A recent SRA review report indicated that 380 SRA projects have been delayed or dead since 2005.

These have not been executed and are stuck at different stages of development, and in many cases, slum inhabitants who have been evicted are living on rent. The SRA had additionally started issuing notices to developers who have failed to begin their projects even after getting clearances from the SRA.

As per the data, there are presently about 2,200 ongoing SRA projects in the city where slum schemes have been presented. About 1,600 schemes have already obtained a Letter of Intent (LoI).

Housing Minister Jitendra Awhad told the media that under the amnesty scheme, FIs that are not on the SRA's record but who are investors in SRA projects would be given a chance to complete projects giving a priority to a competition of the rehabilitation component.

In these dead projects, about Rs 35,000 crore is stuck with the legitimate FIs. Developers who took money from FIs have failed to deliver the projects. The amnesty scheme will help slum dwellers get houses and additionally assist FIs to recover their money. It will provide a push to the housing market. Once sanctioned by the CM, the scheme will be launched, Awhad told the media.

Officials told the media that under the amnesty scheme, FIs sanctioned by the Reserve Bank of India (RBI) and the Securities Exchange Board of India (SEBI) can develop stuck projects. The FIs that have already infused in projects will be informed as joint developers, and they will nominate a new builder. FIs will not pay a 5% premium for a change of developer. FIs will be invited to present applications for opting to create dead projects within 45 days of the scheme being rolled out.

Image Source

Also read: Maharashtra govt plans to redevelop Juhu airport slums

The Slum Rehabilitation Authority (SRA) will soon launch an amnesty scheme to revive 380 delayed slum redevelopment projects. Under it, financial institutions (FIs) like non-banking financial companies (NBFCs) and other firms who have funded and SRA projects that are dead or delayed will be able to redevelop projects without any significant penalty, and with easy approvals. A recent SRA review report indicated that 380 SRA projects have been delayed or dead since 2005. These have not been executed and are stuck at different stages of development, and in many cases, slum inhabitants who have been evicted are living on rent. The SRA had additionally started issuing notices to developers who have failed to begin their projects even after getting clearances from the SRA. As per the data, there are presently about 2,200 ongoing SRA projects in the city where slum schemes have been presented. About 1,600 schemes have already obtained a Letter of Intent (LoI). Housing Minister Jitendra Awhad told the media that under the amnesty scheme, FIs that are not on the SRA's record but who are investors in SRA projects would be given a chance to complete projects giving a priority to a competition of the rehabilitation component. In these dead projects, about Rs 35,000 crore is stuck with the legitimate FIs. Developers who took money from FIs have failed to deliver the projects. The amnesty scheme will help slum dwellers get houses and additionally assist FIs to recover their money. It will provide a push to the housing market. Once sanctioned by the CM, the scheme will be launched, Awhad told the media. Officials told the media that under the amnesty scheme, FIs sanctioned by the Reserve Bank of India (RBI) and the Securities Exchange Board of India (SEBI) can develop stuck projects. The FIs that have already infused in projects will be informed as joint developers, and they will nominate a new builder. FIs will not pay a 5% premium for a change of developer. FIs will be invited to present applications for opting to create dead projects within 45 days of the scheme being rolled out. Image Source Also read: Maharashtra govt plans to redevelop Juhu airport slums

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