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The Bombay High Court recently directed SRA authorities to address a petition filed by slum dwellers from Wadala Village Welfare CHSL which urged the authority to enforce contents of a circular published by them back in the year 2015. The High Court, presided over by a division bench of justices Gautam Patel and Kamal Khata, stated that the joint registrar cooperative department SRA should decide on the matter on a priority basis and preferably within six weeks.
In June 2015, the Slum Redevelopment Authority (SRA) issued a circular facilitating regular increases in transit rent to be paid by developers to slum dwellers who have vacated their premises for redevelopment projects. The circular was designed to address the prolonged periods during which redevelopment projects often linger, leaving occupants stranded in rented accommodations for extended periods.
The implementation of the circular came into focus once again during proceedings at the Bombay High Court, where the court directed the SRA to address the representation submitted by slum dwellers from Wadala. These dwellers sought the implementation of the circular mandating a 5% increase in transit rent.
The court's directive came in response to a petition filed by 78 eligible slum dwellers from the Wadala Village Welfare CHSL, urging the SRA to enforce the circular. This CHSL, formed by various small slum societies in Wadala slated for redevelopment, represents over 2,300 slum dwellers and municipal tenants.
Representing the petitioners, senior advocate Ranjeet Thorat and advocate Yashodeep Deshmukh highlighted that many residents had handed over their premises to the developer, M/s Merit Magnum Constructions, for the proposed redevelopment. Initially a developer was appointed in 2004 and the rent was fixed at INR 15,000. Over the years, there were legal disputes and the redevelopment project was stalled. Subsequently, an agreement was signed with Merit Magnum Constructions.
However, on July 31, 2023 the developer issued a letter and a reminder letter on September 6, for vacating the premises for a rent of INR 15,000 per month. After talks, the developer offered to pay INR 19,000 and a one-time shifting cost of INR 20,000. However, considering the market rate of rent of INR 23,000-25,000 per month, the petitioners have sought higher rent.
The plea raised concerns about the fairness, legality, and reasonableness of the developer's refusal to pay rent at prevailing market rates and its reluctance to grant periodic increase in rent. Additionally, questions were raised about the SRA's inaction in implementing its own circular released almost a decade ago.
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