A dispute has arisen over the ownership and subleasing rights of 47.5 acres of railway land designated for Mumbai's Dharavi Redevelopment Project. The Railway Land Development Authority (RLDA) refuses to permit subleasing to the Dharavi Redevelopment Project/Slum Redevelopment Authority (DRP/SRA). DRPPL contends that DRP/SRA, as state government bodies, have the right to sub-lease the land. RLDA prioritises railway staff quarters' redevelopment and scrapyard relocation, while DRPPL advocates for simultaneous redevelopment. Alongside, DRPPL recently said that eligible industrial and commercial units redeveloped as part of DRP will enjoy benefits, such as a refund of SGST.
A dispute has arisen regarding the ownership of 47.5 acres of railway land designated for the Dharavi Redevelopment Project. The Railway Land Development Authority (RLDA) has declined to authorise sub-leasing of the land, despite a lease agreement with the Dharavi Redevelopment Project/Slum Redevelopment Authority (DRP/SRA). DRPPL argues that under RLDA regulations, the state government bodies DRP/SRA should have the right to sub-lease the land to third parties. However, the RLDA claims the matter is under legal review.
The delay in transferring the land could significantly impact the timeline for completing rehabilitation within seven years, breaching the Memorandum of Understanding (MoU) signed.
DRPPL highlights that the land's potential for residential or commercial use is limited, suggesting it may only be suitable for social amenities like a crematorium or industrial sheds. MLA Varsha Gaikwad emphasised the importance of transferring land ownership to the society under redevelopment or alternatively allowing the government to utilise the land for commercial purposes, to ensure fairness to Dharavi residents.
A key point of contention revolves around the Minutes of Meetings (MoM) of February 24, 2019, where RLDA insisted on completing the redevelopment of railway staff quarters and relocating the Mahim scrapyard before initiating work on the Dharavi redevelopment buildings. In contrast, DRPPL argues for simultaneous redevelopment, citing potential time and cost savings. DRPPL urges RLDA to honour the MoU's principles and promptly transfer the open and operational land.
The disagreement underscores the complexity of coordinating various aspects of the redevelopment project, from land ownership to logistical challenges like relocating existing structures and facilities. Both parties emphasise the importance of adhering to contractual agreements and timelines to ensure the project's success and fulfil obligations to Dharavi's residents.
Alongside, DRPPL recently said that eligible industrial and commercial units redeveloped as part of Dharavi redevelopment project will enjoy benefits, such as a refund of State Goods and Services Tax (SGST). This will help to boost and formalise local businesses.
As per the tender conditions, SGST for industrial and commercial units will be reimbursed by the state government’s Finance Department through the DRP/SRA for five years from the date of issuance of the OC. Eligible industrial and commercial units will have to provide SGST payment details as proof while claiming the refund. The tax rebate will come into effect after the newly constructed buildings receive the occupation certificate (OC).
Dharavi encompasses several thousand industrial and commercial units manufacturing garment and leather items. Many are vendors for large national and international brands sold across the world, with turnover estimated to be in millions of dollars. They are keen to formalise their businesses to expand and get a fillip, both locally and globally.
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