The efforts by the Maharashtra government to provide a quality life to slum dwellers of Mumbai started since as early as 1971. With the formation of the Slum Rehabilitation Authority (SRA) in 1996, the endeavour received a new direction that involved redevelopment projects and relocation of the inhabitants. The state government has launched a comprehensive slum rehabilitation scheme by introducing an innovative concept of using land as a resource and allowing incentive floor space index (FSI) in the form of tenements for sale in the open market.
The main aim of setting up an SRA flat is to provide slum rehabilitation. The slum dwellers jointly agree to a redevelopment of the slums and notify the government to undertake the reconstruction project. The government then works with a private developer who is shortlisted on the basis of a successful bid.
The most important thing to check while buying is the deed title of the property. The property title deed is the legal document which proves the ownership of property. You should make sure that the title deed is solely in the name of a seller and only he has the all rights to sell it.
Always check if the property owners have obtained a release certificate from the bank. This will help to check if they have paid their amount due with the lending bank.
A duly-stamped sale deed is required to pass on the ownership of the property. You will not be entitled to own the property in the absence of a sale deed.
The SRA lays down some rules and regulations for these flats:
1.Once the beneficiaries get the possession of the flats after the construction, they cannot sell the property for 10 years, which is the lock-in period – applicable to the developers as well.
2.After the lock-in period is over and when the dweller wishes to sell the property; then the state government is entitled to its share in the sale price. This is called transaction fee which is equivalent to the maximum stamp duty on the property or Rs 1 lakh, whichever is more.
3.The buyers or their family members should not own a house within the corporation’s limit. The buyer or the original seller is not allowed to buy any SRA flat. They must submit domicile certificates for the purchase.
4.Partnership firms or institutions are not permitted to buy SRA flats. A buyer must belong to the economically weaker section, lower income group and middle-income group.