Investment in sra(slum rehabilitation authority)

swati rane (Querist) 19 April 2016 This query is : Resolved
Dear Sir,

We have sold our property in mulund east mumbai maharashtra (which was ownership flat in developed by private builder). We want to reinvest this money in prabhadevi Mumbai Maharashtra area as is same is close to my work place.
Prabhadevi area is very costly so we are looking for 1 room kitchen property. But in prabhadevi there are very less options available of ownership building having 1 room kitchen flat.
Most of the buildings are developed by SRA ( Slum Rehabilitation Authority ) . So I need your advice is it ok to invest in SRA ( Slum Rehabilitation Authority ) flat and if yes are there any legal implications in future or should i look for ownership flat developed by private builder.
Please let me know all drawbacks and any hazels in investing in SRA flat since i am from middle class background i do not want any issues with my investment. Requesting you to please give your valuable advice on the same.

Regards,

Swati Rane

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Guest (Expert) 20 April 2016
1) First I stay in Thane City
2) Your query comes under provision of Slum Area Act 1971
3) Slum dwellers are allotted free flat and other part of land or same land is developed by builder and sold in market and cost recovered

4) When free flat is alloted there is restriction on sale of flat for first 10 years from construction

5) People sell such flat then next person receives notice from Slum Redevelopment authority that you are encroach etc.

6) Only original slum dweller who is alloted flat can reside in that flat for first 10 years or any further period

7) Before investing in SRA you need to check from SRA authorities whether every thing is legal or not

8) Since in Thane City if you short list property then can help you . Verifying title from SRA whether you are eligible to purchase or not

9)Slum dwellers sell flat but new person don't get any legal rights and they are cheated . Situation becomes so chronic you get notices for encroachment and further proceeding

10) Better before investing money show documents to me or some good property Advocate. Never purchase property when opp. party keeps advocate. You need to keep your advocate to check all documents

11) Although myself student at this stage but handling Property matters I got good grip. I can assist you if you feel so . But myself not authorized to give any title certificate etc. as advocate

swati rane (Querist) 21 April 2016
Thank you so much for your assistance. Will definitely get back to you in case if I proceed further.

Guest (Expert) 21 April 2016
I forgot to tell Most imp. thing, while purchasing Flat in SRA scheme (Flat allotted free and latter you purchase from them)

You need to check who was allotted flat originally . Whether person is same or not . Else there are dummy person.

At same time you need to take permission of SRA under Slum area act

And to be on safer side even after 10 years at least once get in writing from SRA they don't have objection or not concern with flat.

At least 20% of flat allotted free are sold illegal this is one report from Maharashtra. And they have formed to committee to determine what next to be done in Act.Which amendment should be brought so all things will become straight

swati rane (Querist) 22 April 2016
Thank you once again. Considering all this valuable information given by you i have decided not to go for SRA. I have shortlisted another ownership property in prabhadevi mumbai where title and everything is clear i just want another information that stamp duty registration we have to pay on agreement value or on government reckenor value?
Currently my agreement value of property for that area will be approx Rs.70 to 80 lakh but as per government reckenor value it is Rs. 1 Crore. Requsting you to please assist.

Guest (Expert) 22 April 2016
As per my reading long back Stamp duty is calculated on ready knocker price minimum. If market price is more than more stamp duty is paid

+ Registration charges

But bit puzzle why this person is selling below Ready Reckenor price. People try to sell above that Price ?

Additionally title verification should be done by Property Lawyer. Take Title Certificate from Lawyer. Try to keep advocate from your side who knows to check from Land to building plan to Occupying certificate to take search of sub registrar , If society is formed then society registrar office.

Spending few thousands will be safer than regretting latter.

Get certified copies of all directly from authorities , don't rely on documents provided by that person .

Still curious why he is selling less than Govt. fixed price of stamp duty

What is rate per square foot you are getting marktet price there

Guest (Expert) 22 April 2016
See I will be clear when some body give sweet offer as compared to market , I become really suspicious and 30-40 Lakhs lower is not digesting me properly . Be more alert with this transaction.

Try to check out whether there is any loan etc. on this flat by this person or some fraud person.

Some fraud gang took loan on my flat and dumped bank , then one bank transferred this NPA to other then to other (Bank also closed)

When I got information about this transaction I moved to Economic Offense wing. Luckily my case was very strong and their case weak.

But such thing also happens you should be aware what is going in this market real estate market .

And people who do such things for them Criminal Procedure Code and other criminal law is bye heart and they can be called Professional Criminals

swati rane (Querist) 22 April 2016
Thank you once again.

Reason why we are not keeping lawyer is

1. Broker is involved in this transaction
2. We are going to opt home loan from nationalized bank. So i guess Bank's legal team team will check all documents thoroughly.

And reason for low value of flat may be

1. Building is 15 years old.
2. Carpet area for this flat is 250 sq feet
3. Market is down
4. In today's date most of the people don't purchase 1 rk flat at 80 lakh. I can get 1 BHK spacious flat in suburbs. But we don't want to leave prabhadevi area. So we are compromising on cost and carpet area part

Investment in sra(slum rehabilitation authority)

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