The short answer: the dweller gets a fixed 300 sq ft free, and the developer gets an incentive that rises where land is expensive relative to construction. Regulations 14.6 and 14.7 are the longest scheme in the UDCPR, running to nearly fifty pages, but the commercial architecture reduces to a handful of numbers.
Key takeaways
- Eligible hutment dwellers receive 27.88 sq m (300 sq ft) carpet free of cost, including balcony, bath and WC.
- A larger existing structure still gets only 27.88 sq m in the rehabilitation component.
- Protected Occupier is the eligibility on 1 January 2000; Non-Protected Occupier is 1 January 2011, rehabilitated on payment of tenement cost.
- The tenement is jointly owned by the hutment dweller and spouse, and cannot be transferred for ten years except to a legal heir.
- 51 percent consent of slum dwellers is the threshold for submitting a scheme.
- Incentive built up area is a ratio driven by the ASR flat rate divided by the construction rate, bounded at 1:1.50 and 1:3.00.
- Density above 650 and 850 tenements per hectare earns further incentive, and cluster redevelopment of at least 1 hectare earns 10 percent more.
- 14.6 covers Pune, PCMC, PCNTDA and Nagpur; 14.7 covers all other Municipal Corporations with its own incentive table.
Who is eligible, and on what date
Chapter 14, Regulation 14.6.9, ELIGIBILITY turns on two dates, and they carry different consequences.
| Category | Residing on | Entitlement |
|---|---|---|
| Protected Occupier | 1 January 2000 | Rehabilitated free of cost |
| Non-Protected Occupier | 1 January 2011 | Rehabilitated on payment of the cost of the tenement as prescribed by the CEO |
| Ineligible occupier | Neither | Not entitled to rehabilitation under any SRS. May avail other Government housing such as PMAY if independently eligible |
Chapter 14, Regulation 14.6.8, PARAMETERS OF DEVELOPMENT OF SLUM REHABILITAION AREA is explicit that eligibility follows occupation, not structure ownership: only the actual occupants of the hutment are eligible, and a so-called structure owner who is not the actual occupant has no right to the reconstructed tenement even if his name appears in the electoral roll for that structure.
The entitlement itself is fixed. Every eligible dweller receives, free of cost, a residential tenement of 27.88 sq m (300 sq ft) carpet area, including balcony, bath and water closet but excluding common areas. And a structure whose existing residential area is larger than 27.88 sq m is still eligible for only 27.88 sq m in the rehabilitation component.
Ownership is joint. The reconstructed tenement is in the conjoint ownership of the hutment dweller and spouse, entered as such in the society's records and share certificates, and the individual agreement is signed in the joint names of the pramukh hutment dweller and spouse.
The ten year lock is the provision most often misunderstood by anyone buying near an SRA scheme.
Under Regulation 14.6.8(3)(g), a rehabilitation tenement cannot be sold, leased, assigned or transferred in any manner, except to a legal heir, for ten years from the date of allotment or possession. On a breach, other than transfer to a legal heir, the SRA takes the tenement over.
After ten years the CEO of the SRA may permit transfer, on payment of a premium equal to 25 percent of the prevailing market value of the tenement as given in the ASR for the year in which the transfer application is processed.
So a rehab flat offered for resale inside that window is not a title that can be conveyed, and one offered after it carries a 25 percent premium that somebody has to pay.
Rehabilitation is in situ and in the same plot as far as possible. The exceptions are specific: pavement dwellers, and dwellers on land required for a vital public purpose, on locations otherwise unsuitable for human habitation, or where a restriction applies, are rehabilitated elsewhere under the scheme.
Who gets to build it
Chapter 14, Regulation 14.6.10, OBLIGATORY PARTICIPATION The participation of landowners and slum dwellers in makes participation of landowners and slum dwellers obligatory, and then sets out a contest with a fixed order of preference.
Banded by in order of preference
- The landownerFirst preference. Where a landowner holds title to more than 50 percent of a survey number, preference goes to him if ready to pay compensation for the remaining land under section 17 of the Slum Act. Submits as, or through, a Registered Developer with the consent of 51 percent of slum dwellers, and the CEO shall forthwith accept it
- The slum dwellers, if the owner's proposal lacks consentThe CEO publishes a notice inviting them to submit a scheme through a registered society within 90 days. Both sides are heard and the CEO passes a reasoned order accepting one proposal, taking the developer's experience and capacity into account. That decision is final and binding
- The slum dwellers, where the owner submits nothingComing forward through a registered co-operative society or a Registered Developer with 51 percent consent, the CEO acquires the land under the slum at their instance
- A Registered Developer appointed by the SRAThrough competitive bid for a particular scheme
Source: Chapter 14, Regulation 14.6.10, UDCPR as updated 30 January 2025
Note what the 51 percent threshold does and does not do. It is what makes a scheme submittable. Where the owner submits without it, the dwellers get a 90 day window to submit their own, and the CEO chooses between them on the merits. Consent is a gate, not a veto.
The incentive, and why it moves
Chapter 14, Regulation 14.6.16, REGULATIONS RELATING TO REHABILITATION AND FREE SALE is the commercial core for Pune, PCMC, PCNTDA and Nagpur. The total permissible built up area is the rehabilitation component plus a free sale component, and the second is derived from the first.
For every 10.0 sq m of rehabilitation component, incentive built up area is permitted in the ratio 1 : R, where
- R = 2.8 - (n x 0.3)
- n = (Y / X) - 2
- Y = rate of a residential flat per sq m, and X = rate of construction per sq m, both from the ASR applicable to the scheme plot on the date the Commencement Certificate is granted.
Read that backwards and it is intuitive. Where flats sell for a lot relative to what they cost to build, n is large, R is small, and the developer needs less free sale area to fund the rehab. Where the ratio is thin, R rises and more free sale area is allowed. The incentive tracks the economics of the specific location rather than being set once for the state.
It is bounded at both ends: the minimum and maximum ratio of incentive built up area is 1:1.50 and 1:3.00 respectively. Incentive built up area may be used on site up to the maximum FSI permissible on the scheme plot, and additional incentive built up area may be permitted over and above the maximum permissible limit of 3.
Two further incentives stack on that:
| Condition | Additional incentive |
|---|---|
| Existing density more than 650 and up to 850 tenements per hectare | 20 percent additional incentive on the free sale component |
| Existing density more than 850 tenements per hectare | 30 percent additional incentive on the free sale component |
| Cluster redevelopment of at least 1.0 hectare of contiguous slum land, irrespective of the number of land parcels or ownership | 10 percent additional FSI of the free sale component area |
Where in situ rehabilitation is not feasible, because the land is needed for a vital public purpose or is uninhabitable, ecologically fragile or environmentally sensitive, and the scheme is taken on an unencumbered plot instead, the compensation switches to TDR: three times the gross area of the land spared in a congested area, two times in a non-congested area. Land TDR is released in two stages, 75 percent after conveyance of the land and 25 percent after the identified beneficiaries are physically rehabilitated, which is the same milestone logic the Affordable Housing Scheme applies to FSI. Relocation is preferably onto land already earmarked in the Development Plan for EWS, MHADA, housing for the dishoused or slum improvement.
Other Municipal Corporations use a table, not a formula
Chapter 14, Regulation 14.7, Slum Rehabilitation Scheme for Other Municipal Corporations* covers every Municipal Corporation outside Regulation 14.6, and it reaches the same result by a different route: a lookup table on two variables, the basic ratio of land rate to construction rate, and the size of the scheme.
| Basic ratio (LR / RC) | Up to 0.20 ha | 0.20 to 0.40 ha | 0.40 to 1 ha | 1 to 5 ha | More than 5 ha |
|---|---|---|---|---|---|
| Above 2.00 | 1.50 | 1.60 | 1.75 | 2.00 | 2.25 |
| Above 1.50 up to 2.00 | 1.60 | 1.75 | 2.00 | 2.25 | 2.50 |
| Above 1.00 up to 1.50 | 1.75 | 2.00 | 2.25 | 2.50 | 2.75 |
| Up to 1.00 | 2.00 | 2.25 | 2.50 | 2.75 | 3.00 |
The gradient runs the same way as the Pune formula: a high land rate relative to construction earns a lower incentive, because the free sale area is worth more. The added variable is scheme size, and it rewards scale, from 1.50 on a plot under 0.20 ha to 3.00 on one above 5 ha at the same land ratio. The rates come from the ASR of the year the Letter of Intent is sanctioned, and the regulation states that FSI sanctioned on an SRS site may exceed 4.00.
Regulation 14.7.8(ii) is worth reading for what it counts inside the rehabilitation component, because it is far more than housing.
Rehabilitation built up area includes staircases and passages, anganwadi, health centre or outpost, community hall, gymnasium or fitness centre, skill development centre, women entrepreneurship centre, yuva kendra or library, balwadis, society office, permitted religious structures, and other social infrastructure such as a school or dispensary run by a public authority or charitable trust.
It also includes 5 percent incentive commercial area for the co-operative society, and a further 5 percent for the NGO, Government, public authority or Government company where eligible.
So the rehab component is a small neighbourhood with a revenue stream, not a block of flats, and everything in that list is what the incentive ratio is multiplying.
What the register shows
A slum rehabilitation project's free sale component is sold to the public, so it is registered with MahaRERA like any other project, and appears there as an ordinary registration. The rehab component may or may not be registered depending on how the promoter structures the phases.
That means the register can tell a buyer a great deal about the free sale tower they are being offered: the filed land area, the buildings and their floors, the sanctioned and sold units where filed, the construction progress against the RERA activity checklist, the promoter's extension history with the stated reasons, and any complaints or litigation with case numbers.
What it cannot tell them is the state of the rehabilitation component, which is the thing that most often determines whether the free sale tower gets its occupancy certificate. That obligation sits in the SRA's Letter of Intent and its milestone conditions, not in the RERA filing. The nearest public proxy is the promoter's own record: how many of their registrations have taken extensions, and what reasons they gave.
Names and numbers in this story are illustrative.
Frequently confused with
- Redevelopment: what the old owner gets
- Affordable Housing Scheme and PMAY
- Integrated Township Projects
- TDR: what earns it, and where it may never land
Where the filings come in
Eligibility lists, Letters of Intent and rehabilitation milestones sit with the Slum Rehabilitation Authority.
What is public is the registration of the free sale component: every project at reragenie.com carries the filed land area, the buildings and their floors, the units sanctioned and sold where filed, the promoter's extension history with reasons, the certifying professionals, and any complaints or litigation with case numbers.
ReraGenie's project analysis, Rs 2,999 for one project, reads the full filing and the documents behind it and sets the promoter's record against the rest of the register, which for a scheme this dependent on delivery discipline is the number worth having.
Source: Unified Development Control and Promotion Regulations for Maharashtra, UDCPR as updated 30 January 2025. Sanctioned under the Maharashtra Regional and Town Planning Act, 1966.
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