SRA to take over 500 redevelopment projects

Developers availed of loans from financial institutions based on LoI but did not execute projects

The Slum Rehabilitation Authority (SRA) will take over 500 slum redevelopment projects in Mumbai after it was found that developers availed of loans from financial institutions on the basis of Letter of Intent (LoI) from the authority and did not execute the project for many years, displacing slum-dwellers without providing them houses as per the law. State Housing Minister Jitendra Awhad said, “The developers picked up loans from financial institutions on the basis on LOI. The institutions, however, did not contact the authority to check on the progress of the said projects. Hundreds of crores of rupees have been invested here. The SRA will take over these projects and complete them by itself.” SRA issues LOI to the developer assigning a particular slum pocket to be redeveloped. “The LOI does not mean that the said builder owns the land,” the Minister said. On the basis of LOI, the developer provides accommodation to the eligible slum-dwellers at a different place till the project is completed and the slum razed.