Slum Redevelopment part I

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‘Roti, Kapda aur Makaan’ are the three basic necessities in everyone’s life. While a good number of people in India have been fortunate in obtaining these necessities, there are several who have not been so successful. This has led to India and especially Mumbai having the unique distinction of housing some of the largest slums in the world. Mumbai has over 2,000 slum clusters, each of them housing over 100 to several thousand shanties. Slums and skyscrapers existing cheek by jowl in Mumbai are a common scenario. Slums are a hazard to society, environment and health. Considering these problems, the Maharashtra Government enacted the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 (‘the Act’). It is an Act to make a better provision for the improvement and clearance of slum areas in the State and for their redevelopment and for the protection of occupiers from forceful eviction. The shortage of land for development in Mumbai has forced developers to look at slum redevelopment as an active option. This has led to slum redevelopment schemes gaining popularity. According to a 2010 Research Report, 52% of the upcoming realty projects in Mumbai, spread over 8,600 acres, are slum redevelopment schemes. Another Research Report estimates the land value occupied by Mumbai slums to be Rs.1 lakh crore on a conservative basis.

Considering the rampant nature of slums across India, the Ministry of Housing & Urban Poverty Alleviation has come out with a Scheme titled the Rajiv Awas Yojana (‘RAY’) for slum dwellers and urban poor. It envisages States granting property for slum dwellers. The RAY envisages that each State would prepare a State Slum-free Plan of Action (‘POA’). The preparation of legislation for assignment of property rights to slum dwellers would be the first step for State POA. The POA would need to be in two parts, Part-1 regarding the upgradation of existing slums and Part-2 regarding the action to prevent new slums. In Part-1 the State would need to survey and map all exiting slums in selected cities proposed by the State for coverage under RAY. In Part-2 the Plan would need to assess the rate of growth of the city with a 20-year perspective, and based on the numbers specify the actions proposed to be taken to obtain commensurate lands or virtual lands and promote the construction of affordable EWS houses so as to stay abreast of the demand. The Centre intends to provide to States/UTs financial support and handholding/ capacity development support. The National Steering Committee for slum-free city planning — Rajiv Awas Yojana will monitor the financial and physical progress under the Scheme.

The Central Government approved the launch of the phase-1 of RAY in June 2011. As per the decision of the Cabinet Committee on Economic Affairs, the Centre will bear 50% of the cost of slum redevelopment. To encourage creation of affordable housing stock, the existing schemes of Affordable Housing in Partnership and Interest Subsidy Scheme for Housing the Urban Poor have been dovetailed into RAY. The Finance Minister has approved Rs.5,000 crores towards RAY under the 5-Year Plan up to 2012.

This Article aims to look at some of the crucial provisions under this very important Act and the process of slum improvement, clearance, redevelopment, etc.

Competent Authority

Under the Act, the State Government appoints one or more persons as the Competent Authority for administering the Act in various areas. For instance, for area belonging to MHADA, MHADA is the Competent Authority, and the Additional Collector, Mumbai is the Competent Authority for all lands in Mumbai city. Similarly, Competent Authorities are appointed for different areas in the State.

The Act also provides for the creation of a Slum Rehabilitation Authority (‘SRA’). The SRA is in charge of the Brihan Mumbai area and is headed by the Chief Minister of Maharashtra. The powers of the SRA are:

(a) To survey and review the existing position regarding slum areas;
(b) To formulate schemes for rehabilitation of slum areas;
(c) To get the slum rehabilitation schemes implemented;
(d) To do all such acts as are necessary for achieving the rehabilitation of slums.

By amendment to the Maharashtra Regional & Town Planning Act 1956, the Slum Rehabilitation Authority has been declared as a planning authority, to function as a local authority for the area under its jurisdiction. SRA has been empowered to prepare and submit proposals for modification to the Development Plan of Greater Mumbai. The SRA can declare any area as slum rehabilitation area for the rehabilitation of slums and in certain cases slum areas become slum rehabilitation area by means of deeming provisions. All such slum rehabilitation areas where slum rehabilitation schemes are proposed and being implemented, come under the jurisdiction of SRA.

The SRA can appoint officers and executives for its better functioning.

Slum rehabilitation area

Interestingly, the word ‘slum’ which is the edifice of this Act has not been defined under the Act. A slum rehabilitation area is an area declared to be one under a scheme. An area would be declared as a slum area if it fulfils the following conditions:

(i) It is a source of danger to the health, safety and convenience of the public because it has inadequate or no basic amenities, or it is insanitary, squalid, over-crowded, etc.

(ii) The buildings therein are unfit for human habitation or are dilapidated, over-crowded, lack ventilation/lighting/sanitation, etc.

Protection of occupiers

On and after the 2001 Amendment Act, protected occupiers cannot be evicted from their dwelling structure. Protected occupiers can be evicted if the State Government is of the opinion that it is necessary to do so.

An occupier has been defined to include the following:

(a) Any person who is paying the owner rent for the land or building;

(b) An owner is in occupation of his land or building;

(c) Rent-free tenant of any land or building;

(d) Licensee in occupation of any land or building; and

(e) Any person who is liable to pay to the owner damages for use and occupation of land or building. Owner has been defined under the Act to mean a person who receives rent of the land or building if it were let and includes:

(a) An agent/trustee who receives such rent on account of the owner (b) A Court-appointed receiver/manager (c) A mortgagee-in-possession. However, the definition of an owner excludes a Slumlord.

A Slumlord is defined to mean a person, who:

(a) Illegally takes possession of lands; or
(b) Enters into or creates illegal tenancies, leave and licence agreements, etc. on such lands; or (c) Constructs unauthorised structures for sale or hire; or
(d) Gives such lands on rental/licence for construction/occupation of unauthorised structures; or
(e) Knowingly gives financial aid to any person for the above; or
(f) Collects rent/charges from occupiers by criminal intimidation/use of force/illegal means.

No person can without the prior approval of the Competent Authority:

(a) institute any suit for the eviction of an occupier from any building or land in a slum area;
(b) apply to any Court for a distress warrant for rent arrears against any occupier.

Slum improvement

(a) If the Competent Authority is satisfied that any slum area is capable of being improved, then it may serve a notice to the owner of the property of its intention to carry out such improvement. It would invite objections and suggestions from them also.

(b) The final decision on whether to commence or abandon or modify/postpone the improve ment is that of the Competent Authority.

(c)    Improvement of the slums may consist of laying of water mainlines/sewers/drains; provision for sanitation facilities, wid ening of roads, street lighting, landscaping, providing social infrastructure, such as playgrounds, parks, police station, hospitals, etc.

(d)    For the above improvement, the Competent Authority may require the occupiers to vacate the premises occupied by them. It may as far as practicable offer alternative accommodation.

(e)    If buildings in a slum area are unfit for hu man habitation or any area is a source of danger to the health, safety and conve nience of the public, then the Competent Authority may serve a notice on the owner to execute such works of improvement as it deems fit.
 
(f)    It has powers to enforce the notice for carrying out works of improvement.

(g)    The Competent Authority may direct that no person shall erect any building in a slum area without its prior permission.

(h)    The Competent Authority can order that any building in a slum area which is not fit for human habitation should be demolished.

Slum clearance

U/s.11 of the Act, if the Competent Authority is satisfied that the most satisfactory method of dealing with a slum is the demolition of all the buildings in that area, then it may by an order direct that such area should be cleared of all buildings in accordance with the provisions of the Act. Such an order is known as a ‘clearance order’ and such area is known as a ‘clearance area’. It must also make provisions for accommodating those dishoused. The order is then forwarded to the Administrator appointed under the Act. The Administrator in Greater Bombay is a person not below the rank of a Divisional Commissioner. He may either confirm or vary or reject the clearance order.

Once an area has been cleared of its buildings, its owner may apply for redevelopment of the land. Alternatively, the Competent Authority itself may decide to redevelop the land at its cost, with prior approval of the Administrator.