Over 50% of people live in slums in Mumbai. The last few decades have seen a rise in an illegal slum and transit camp dwellers. Along with other such statistics, the Maharashtra government employed a team of experts to try to improve the condition of living for these slum dwellers. In 1995, they came up with a scheme which focused on slum rehabilitation.
What are SRA Properties?
These properties are focused on the reduction of slums and rehabilitation of people living in them. Such properties are established once the government gets consent from all the beneficiaries of a particular area. Once they agree to the terms, the government then gets private builders on board to construct a sustainable property. In this scheme, the builder has to provide a flat to all the beneficiaries originally living in that slum. These flats have an area of 300 square feet. The remaining flats, which do not fab a carpet area restriction, can be sold off to other home buyers
How are SRA projects beneficial?
Mumbai’s slums are an integral part of the cityscape and indirectly affect the infrastructure. With SRA scheme, the government can slowly eliminate the nuisance caused by these slums, thus improving the overall infrastructure of our city. It is equally beneficial for the low-income group of people who get a chance at an improved lifestyle with these flats. They can also buy these homes after 10 years. It opens a whole sector of employment construction workers and labourers to work alongside builders.
Who can buy these properties?
Under the scheme, the primary beneficiaries are the slum dwellers who have been rehabilitated. They are allotted a flat for a lock-in period of 10 years. According to the SRA Rules, neither these beneficiaries nor the builder can sell off the flats for 10 years. The remaining flats can be out of for “free sale” for the public. After 10 years, in case a transaction of the allotted property takes place, the government is entitled to a processing and registration fee for the residential, commercial and industrial purpose.
The buyer has to fulfil certain criteria as follows:
– He should have no house within the BIG.
– He and his family should be under Economically Weaker Section, Lower/Middle Income Group.
– Original seller is not entitled to buy an SRA flat.
– Big firms or organizations are not entitled to buy these flats.
What are the risks involved in buying SRA Property?
– It is imperative to check for title deed from original seller, to confirm that the property and solely in his name and whether he is entitled to sell it.
– Many of these flats are illegally occupied. Many slum dwellers either sell or lease out these flats.
– You may not get a home loan if the flat you are looking to buy has had some previous illegal transactions.
Although buying an SRA home is a cost-effective way of owning a property in Mumbai, one needs to be vigilant in checking all documents and avoiding risky properties.