On lines of SRA Act, Maharashtra government is planning to introduce a contract termination clause for private builders, if they don't complete the projects of Maharashtra Housing and Area Development Authority (MHADA) on time.
Slum Rehabilitation Authority (SRA) Act, under which private builders can construct houses for slum dwellers and get rights for commercial-development in return, has provision for termination of contract for delays.
The MHADA, with a mandate to build affordable houses, has 104 colonies in Mumbai alone. It hires private builders for constructing new buildings and redevelopment of old ones.
"It will empower MHADA to select a new builder and complete the pending construction. There are hundreds of projects where private builders couldn't finish the construction because of various reasons," Housing Minister Prakash Mehta said.
In the case of redevelopment of old MHADA buildings, the delay creates problems for residents as they have to live in temporary shelters for many years. The proposal to amend the Act has been sent to the Law Department, the minister said.
"Several MHADA colonies in Mumbai are due for redevelopment. We are also planning to bring both MHADA and SRA Act projects under the Real Estate Regulatory Authority (RERA) Act, which will also ensure completion of projects in time," Mehta said.
The RERA Act provides for penalties for builders if they do not complete projects in the promised time.
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