SRA Flat Sale Rules Demystified: Navigating Affordable Housing in Mumbai

Mumbai, the city of dreams, is known for its stark contrasts. Amidst the glitz and glamour of this bustling metropolis, a significant portion of its population resides in slums, struggling for basic amenities and dignified living. In December 1995, the Maharashtra state government initiated a comprehensive slum restoration plan, establishing the Slum Rehabilitation Authority (SRA) to provide suitable homes to the urban poor living in Mumbai's slum neighbourhoods. The SRA's vision was to transform the land into a valuable resource, offering SRA apartments to slum residents and selling the remaining tenements on the open market. In this blog, we will demystify the SRA flat sale rules, shedding light on affordable housing in Mumbai.

What Are SRA Apartments?

SRA apartments, or Slum Rehabilitation Authority apartments, are the cornerstone of the government's slum rehabilitation plan. These apartments serve as an essential component of improving the living conditions of Mumbai's slum residents. There are two primary types of SRA flats:

1. Assigned SRA Flats: These are the apartments allocated to slum residents after they surrender their current residence. This is a crucial step towards rehabilitating the slum population.
2. Market-Sold SRA Flats: In addition to providing homes to slum dwellers, the SRA allows builders to sell a portion of the tenements on the open market. This is done to recoup costs and generate revenue for the developer, which is essential for the sustainability of the slum rehabilitation projects.

Is It Possible to Purchase SRA Flats?

When it comes to purchasing or selling SRA units, the SRA has established specific rules and regulations to ensure the fair and transparent distribution of these properties. Here are the key points to remember:

1. 10-Year Lock-in Period: A recipient of an assigned SRA unit is subject to a 10-year lock-in term, which prevents them from selling the property during this period.
2. Transaction Fee: If the property is sold after the 10-year lock-in period, the state government is entitled to a part of the sale price, known as the transaction fee. This fee is equivalent to the stamp duty or Rs 1 lakh, whichever is higher, and is required at the time of property registration.
3. Domicile Certificate Requirement: Only a person with a domicile certificate can purchase an SRA unit. Moreover, the family must not own any other property in Mumbai's suburbs.
4. Original Seller Restriction: The original seller of the SRA apartment is unable to purchase another SRA unit, preventing speculative purchases.
5. Income Group Eligibility: The purchaser must belong to the economically weaker section (EWS), the lower-income group (LIG), or the middle-income group (MIG).
6. Co-Ownership and Business Restrictions: Both the husband and wife's names must appear on the sale document, and partnership businesses or organisations cannot purchase SRA apartment

Things to Know Before Buying an SRA Mumbai Flat

Before investing in an SRA Mumbai flat, there are crucial factors to consider:

1. Title Document Verification: Verify the title document to ensure that you are purchasing the property from the original seller, and the seller's name should be the sole name on the deed.
2. Legal Consultation: Consult with a real estate lawyer to review the property documentation and title deed.
3. Bank Release Certificate: Ensure that the seller has a bank release certificate, signifying that any outstanding debts related to the property have been repaid.
4. Properly Stamped Sale Document: Property ownership can only be transferred using a properly stamped sale document. Note that property transactions conducted through a power of attorney are illegal and hold no legal standing in court.

The Authority Behind SRA:

The Slum Rehabilitation Authority (SRA) is headed by a Chief Executive Officer, with the Maharashtra Chief Minister serving as the organisation's Chairperson. Other members include the State Housing Minister, Urban Development Minister, Commissioner of the Municipal Corporation of Greater Mumbai, and the Senior Secretary of the Urban Development and Housing Department.

In conclusion, the Slum Rehabilitation Authority (SRA) plays a critical role in reshaping Mumbai's landscape by providing suitable homes to the urban poor while ensuring transparency in the sale and purchase of SRA flats. Understanding the SRA flats sale rules and regulations governing SRA flats is essential for anyone looking to invest in affordable housing in Mumbai. This initiative is not only transforming the lives of slum dwellers but also contributing to the overall development of the city. If you are interested in buying property in Mumbai, you can check out the listings on Blox.