State cabinet slashes transfer fees by 50% for slum rehabilitation units

In a significant development aimed at alleviating the challenges faced by slum dwellers, the state cabinet, in a meeting held earlier this month, made a pivotal decision to slash the flat transfer fee in slum rehabilitation units by 50%. The existing transfer fee, which stands at Rs 1 lakh, will now be reduced to Rs 50,000. The Slum Rehabilitation Authority (SRA) currently provides flats to slum dwellers free of cost. However, an additional transfer fee of Rs 1 lakh, along with stamp duty, is imposed when the flat is transferred, particularly when it is sold after the stipulated time limit. This practice has been identified as a financial burden on the buyer of the flat, prompting the cabinet's decision to cut the transfer fee by half. An official spokesperson highlighted the relief this decision would bring, stating, "Due to this, the buyer of the flat becomes financially burdened. This has now been cut by 50%." The move is expected to ease the economic strain on individuals seeking to acquire SRA flats. Deputy Chief Minister Devendra Fadnavis had initially disclosed this initiative during a conference of cooperative housing societies in Mumbai back in May. As part of this effort, it was also announced that builders would be obligated to pay one year's rent in advance. This latest development builds upon earlier reforms in SRA schemes. In 2020, then housing minister Jitendra Awaad had announced that slum dwellers would be permitted to sell their houses within five years instead of the previous ten-year lock-in period. The decision was based on a recommendation from a cabinet sub-committee formed in 2017 to assess the policy on the sale and purchase of SRA tenements. The sub-committee, led by the then housing minister Prakash Mehta, played a crucial role in shaping the revised regulations. Under the SRA scheme, slum dwellers are granted houses free of charge, with the condition that they cannot sell or rent them out for a specified period, traditionally set at 10 years. Post this lock-in period, if the residents choose to sell their property, the government was entitled to an amount equivalent to the stamp duty or Rs 1 lakh, whichever was higher. However, with the recent decision, this amount has been significantly reduced to Rs 50,000, providing greater flexibility for slum dwellers to manage their properties as they see fit. Officials have emphasized that this reduction in fees empowers slum dwellers to sell their flats after the lock-in period, affording them the opportunity to relocate or utilize the proceeds to invest in larger homes. This move reflects a commitment to fostering more inclusive and accessible housing solutions for marginalized communities within the state.

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State cabinet slashes transfer fees by 50% for slum rehabilitation units

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