In a bid to provide pucca houses to people living in the slums of Mumbai, the Maharashtra government developed the Slum Rehabilitation Authority (SRA) in 1995 under the Slum Rehabilitation Act 1995. Under this, a part of the slum land will be used to construct pucca houses for slum dwellers. The remaining part of the land will be developed to generate revenue. Slum rehabilitation is a major point of focus in the Maharashtra Housing Policy 2025. In this guide, we discuss the norms that govern the development and sale of SRA flats in Mumbai.
Maha Cabinet okays slum cluster redevelopment scheme for Mumbai
The Maharashtra Cabinet on October 7, 2025, approved the slum cluster redevelopment scheme in Mumbai. To be implemented by the SRA, the scheme is aimed at accelerating large-scale slum redevelopment and improving urban infrastructure in the financial capital, mention media reports.
According to a statement issued by Maharashtra chief minister Devendra Fadnavis, the scheme will focus on redeveloping slum clusters as integrated housing projects, providing better living conditions while creating opportunities for private investment and construction activity.
What are the SRA flats in Mumbai?
The flats that are developed under the SRA scheme are known as SRA flats. Under the slum rehabilitation scheme in Mumbai, land is the resource. The SRA uses the concept of allowing incentive floor space index (FSI) in the form of units for sale in the open market, for cross-subsidisation of the slum rehabilitation units that are provided free to the slum-dwellers.
What are the types of SRA flats?
There are two types of SRA flats:
Housing unit for the slum dweller
Under the SRA, a housing unit is allotted to the slum dweller after he surrenders his existing home. In this, the slum dweller and the developer enter into an agreement stating that the former has chosen a pucca permanent house in place of his existing area. Once the project is completed, a registered society is formed.
Free sale in open market
These are units sold by the developer in the open market by way of signing a sale agreement.
Steps towards making Mumbai slum-free
According to Niti Aayog’s ‘Developing Mumbai Metropolitan Region as an Economic Growth Hub, 2030’ report, as of FY23, MMR has around 22 lakh slums that have to be rehabilitated.
Economically attractive sites
According to the Niti Aayog report, around 40-50% of the slums (around 10-11 lakh) are located in areas that are financially attractive to private developers under the existing slum rehabilitation schemes. These are mostly located in areas with real estate prices of Rs 30,000 per sqft. The report mentions that thus, 10 lakh can be rehabilitated through the private sector. Already, letters of intent for 4-5 lakh slum households have been issued to various private developers.
Economically less-attractive sites
The report highlights that the remaining 11 lakh slums need viability gap funding and can be developed by housing department agencies or by partnering with government agencies such as MMRDA, Cidco, MSRDC etc.
Eligibility for slum rehabilitation
Only slums created before 2011 are eligible for rehabilitation.
Responsibility of SRA for slum rehabilitation
Through a single window clearance, the SRA has to give all approvals for the project and implement the slum rehabilitation schemes. These include:
- Formation of co-operative societies
- Certification of eligibility of slum-dwellers
- Taking punitive action on non-participating slum-dwellers obstructing the scheme
- Survey and measurement on slum lands grant of building permissions
- Leasing of rehabilitation plots and free-sale plots
- Updating of property cards (PR cards).
Slum rehabilitation under Maharashtra’s new housing policy 2025
The Maharashtra Cabinet launched the new housing policy 2025 – Majhe Ghar, Majha Adhikar on May 20, 2025. According to Samyak Jain, director, Siddha Group, “The emphasis on slum redevelopment and housing for EWS, LIG, and MIG categories in the housing policy 2025 aligns well with the aspirations of millions.”
Provisions introduced under slum rehabilitation
Mentioned below are the key provisions regarding slum rehabilitation included in
Use of central government land for slum-rehabilitation projects
The housing policy proposes the use of central government land for slum rehabilitation projects. This can be done by entering into joint ventures between the central government and the SRA. It has also proposed taking funding for the rehabilitation from the concerned central government department.
Use of CSR funds
The housing policy 2025 has proposed use of corporate social responsibility (CSR) funds for slum rehabilitation projects that will encourage private sector participation. This will help address challenges related to housing. According to Dr Niranjan Hiranandani, chairman- Naredco and Hiranandani Group, the CSR utilisation and the Rs 20,000 crore MahaWas Niwas Nidhi fund signify a commitment to creating slum-free cities, ensuring social housing projects, and better living standards for citizens.”
Cluster redevelopment
According to Maharashtra chief minister Devendra Fadnavis, all slum rehabilitation buildings that were constructed when SRA was established have become vertical slums and these will be redeveloped. With an intent to revive multiple slums in a single ward through integrated planning, the Maharashtra housing policy has proposed cluster redevelopment.
Inclusion of common areas under rehabilitation
To encourage developers, the housing policy includes common areas such as parking, staircase, lifts and lift lobbies as part of the rehabilitated area. The urban development department will look at providing an incentive floor space index (FSI).
Compulsory steps to be followed under SRA
The housing policy 2025 has also put into mandatory steps with respect to SRA to protect the interests of the slum dwellers.
Use of IT-based system for transparency
To bring in accountability in SRA projects, IT tools will be used for beneficiary identification, status of the project and managing the funds. This streamlined data will ensure the project is implemented efficiently.
Compulsory registration
Under the new housing policy, it is mandatory to sign an agreement between the slum dweller and the developer with minimum stamp duty, so that the legal rights of the former are protected.
SRA projects with no progress
All the slum rehabilitation schemes that have seen no progress even after repeated meetings between developer and the SRA, the housing policy allows the selection of new developers by way of a transparent bidding process.
Stalled SRA projects
As per industry reports, currently, there are over 228 SRA projects that are stalled in the MMR. Under the new housing policy 2025, the Maharashtra government has approved their development through joint partnerships with agencies such as BMC, Mhada, Cidco, MIDC, MMRDA, MahaHousing, SSPL etc.
Can you sell SRA flat in Mumbai?
While there are no restrictions for a person who is buying the SRA flat from the open market by executing a sale deed, there are some rules that are in place for slum dwellers.
- There is a three-year lock-in period once the hutment is demolished to sell an SRA flat
- Before buying the SRA flat, the buyer has to get information regarding the unit such as scheme name, ward name, address, CTS number, village name, developer name and architect name etc.
- The buyer should have a domicile certificate of Maharashtra.
- The buyer should not have any other housing unit in Mumbai.
- The buyer has to be from the economically weaker section (EWS), lower-income group (LIG) or the middle-income group (MIG).
- The buyer has to get a no-objection certificate (NOC) from SRA for adding their name to the SRA records. A sale deed has to be drafted on which stamp duty of Rs 1 lakh has to be paid. This has to be registered in the husband and wife’s name in the presence of a lawyer
- Remember that transfer of SRA flat through power of attorney is illegal.
- Organisations and companies cannot buy or sell SRA flats.
- Once a buyer buys a SRA flat, both the buyer and the original seller cannot transact in any SRA project.
Documents required to sell SRA flat
- Approval letter from SRA
- Utility bill- electricity, water bill etc.
- Sale deed
- Title deed (should only be in the name of the original seller)
- Property related documents
- Release certificate from bank
- NOC from housing society
- Occupancy certificate of the SRA flat
- Share certificate of the cooperative housing society
- PAN card (both buyer and seller)
- Aadhaar card (both buyer and seller)
Housing.com POV
The number of people living in Mumbai slums is easily equal to the population of a country like Singapore. While the problem has been identified and work has started on SRA, there has been a slack in the past owing to no progress or stalling of the project leading to agony and stress especially for the slum dwellers. Effective SRA implementation is expected to be done with the new housing policy 2025 in place that has put in place provisions and mandatory measures protecting legal rights of people living in the slum.
FAQs
What is the carpet area offered in a SRA flat?
The carpet area offered in a SRA flat is around 322 sqft. Previously, around 269 sqft was offered.
Can a SRA flat be rented?
No. SRA flats are developed to provide a pucca house to the slum dweller. So, it is not encouraged to rent it out.
Can you get a home loan for buying a SRA flat?
Yes. A home loan is granted for an SRA flat. However, the bank or NBFC will check with the SRA for eligibility approvals.
Can a person after selling his SRA flat can buy/ apply for another one?
A buyer/seller once after selling an SRA flat can’t invest in any other SRA flat.
Will SRA flats be MahaRERA registered?
Yes. All new real estate construction in Maharashtra has to be MahaRERA registered. Thus, SRA flats will also be MahaRERA registered.
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