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ARTICLE · 10 OCTOBER 2023

SRA Circular On Advance Transit Rent Applicable To Ongoing Projects Also

In a project being developed under a slum rehabilitation scheme, the eligible slum dwellers are to be paid transit rent, till the date of their new rehab tenement...

IndiaCorporate/Commercial Law

Introduction

In a project being developed under a slum rehabilitation scheme, the eligible slum dwellers are to be paid transit rent, till the date of their new rehab tenement is handed over possession to them by the developer. However, there have been several instances in the past where the slum dwellers have been living in transit accommodation for years and the developers have stopped paying the rent for the same.

Over the years, the complaints regarding non-payment of rent have drastically increased.

Background

Keeping in view the increasing instances of defaults by developers, a Public Interest Litigation being PIL No. 109 of 2019 by Vijendra Kumar Rai against the State of Maharashtra1 ("PIL") was filed before the Hon'ble Bombay High Court for non-payment of transit rent to eligible slum dwellers. The PIL highlighted that the substantial dues had not been paid to the eligible slum dwellers by the respective developers.

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