Residents of a slum in Wadala East, Mumbai, face continued uncertainty as their redevelopment project, initiated in 2013, remains stalled. Despite vacating their homes over a decade ago, they haven't received promised permanent housing or transit rent. Developer Omkar Realtors cited financial difficulties, halting rent payments in 2015-2016. A recent Bombay High Court order criticized the delays and urged the state government and Slum Rehabilitation Authority (SRA) to make firm decisions. A potential takeover by J C Flowers Asset Reconstruction Pvt. Ltd. has been proposed, but the immediate issue of unpaid rent remains unresolved. The court has ordered Omkar to deposit outstanding rent by July 24, 2024.
Residents of a slum in Wadala East (E) in Mumbai face continued uncertainty as their redevelopment project, initiated in 2013, remains stalled. A recent Bombay High Court order highlighted the plight of these residents and criticized the delays.
The project promised permanent accommodation for residents who vacated their homes in 2013. However, since then,residents haven't received either the promised permanent housing or the transit rent, which is typically a monthly payment to help residents with living expenses during construction.
The court documents reveal that the appointed developer, Omkar Realtors and Developers Pvt. Ltd., cited financial difficulties and stopped paying transit rent in 2015-2016. Despite this, they have not relinquished control of the project.
A potential solution emerged when a lender, M/s J C Flowers Asset Reconstruction Pvt. Ltd., expressed interest in taking over the project, including Omkar's assets and liabilities for an estimated INR X (amount not disclosed). However, their proposal only addressed changing the developer, not resolving the immediate issue of rent payments owed to residents,which are estimated to be in arrears for several years.
The High Court judges slammed the state government, the Slum Rehabilitation Authority (SRA), and the developer for their inaction. They emphasized the residents' right to rent payments, criticizing the "bureaucratic hurdles" faced in recovering their dues. The court ordered Omkar to deposit all outstanding rent in the High Court by July 24th, 2024.
The future of the project remains unclear. The court directed the state government and SRA to make "firm decisions" on the developer and lender proposals within two weeks. Residents can only hope that a swift resolution will finally provide them with a secure housing situation.
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