Maharashtra looks for revenue from slums

Considering competitive bidding for slum rehabilitation.

The Maharashtra government is considering the option of competitive bidding for slum rehabilitation projects on the lines of a similar model in Delhi, as it will bring in some revenue to the land owner which, in most cases, are various government agencies.

Speaking to Business Standard, Housing Secretary Swadheen Kshatriya said, "The task force led by Chief Secretary DK Shankaran on the housing policy will look into the pattern being used by the Delhi Development Authority (DDA) for slum rehabilitation schemes."

At present, people from slums have to come together and appoint a developer, after which they can approach the Slum Rehabilitation Authority (SRA). If consent is given by at least 70 per cent residents of that particular slum, the SRA approves the project.

In most cases, the slum-dwellers get a house and the developer gets extra floor space index (FSI) for commercial exploitation but the landlord gets nothing. Slums in the city are encroachments on land owned by various government agencies like the state government, the municipal corporation and the railways.

However in Delhi, the DDA invited competitive bids for slum redevelopment projects and the developer offering the maximum benefits to the slum-dwellers and the landlord was given the rights to implement the scheme, said Kshatriya.

Due to rivalry between developers, after the scheme of one developer is approved or is in the process of getting approved, another developer arrives on the scene and he tries to lure the slum-dwellers by offering them more benefits and amenities.

Then slum-dwellers retract and claim they have not given consent to the developer, their consent is fraudulent or taken with cohesion or by offering them some other benefits.

This stalls the development of the slum and litigation starts, nearly 1,000 such slum rehabilitation schemes are under litigation in Mumbai.

"If we go for competitive bidding, it will stop all these malpractices and slum rehabilitation projects will get a real impetus," said Kshatriya.

"We are also thinking of videographing the consent given by the slum-dwellers, so that scope for retraction at a later date is minimal," Kshatriya added.