7,000 slums in Dharavi sold for Rs 700 cr
MUMBAI: While tony Cuffe Parade recently witnessed the countrys second highest apartment deal at Rs 93,000 a sq ft, a real estate goldmine is
quietly developing at the other end of the island city. Slum enclave Dharavi, on the verge of a Rs 15,000-crore redevelopment project, has speculators running amuck to buy up its minuscule shanties.
The trend was discovered by Pune-based NGO, Mashal, soon after it completed an exhaustive 18-month-long survey of the 590-acre sprawl. The NGO says that 6,000 to 7,000 slum dwellings have been sold in Dharavi over the past four monthspossibly to individual investors who expect the Dharavi Redevelopment Project to kick off shortly. The total value of slums sold so far comes to a staggering Rs 700 crore.
During the survey, Mashal used a sophisticated software called the Geographical Information System to map each and every structure and household in the shanty town. The NGO was appointed by the Slum Redevelopment Authority following protests and criticism that the project was being implemented without anyone knowing the ground realities.
Architect-planner Sharad Mahajan of Mashal and his co-ordinator in Dharavi, Dinesh Prabhu, told TOI that each slum tenementwhich is barely 120-200 sq ft in sizewas being sold for Rs 10 lakh to Rs 15 lakh. Commercial units, around 150 sq ft, are selling for anywhere between Rs 15 lakh and Rs 30 lakh.
Those who have received photo passes, which makes them eligible for rehabilitation, are charging a premium, said Mahajan.
Although there is a suspicion that builders could be buying over these slums, Mahajan claims that the buyers seem to be individual investors out to make a fast buck. However, government and BMC sources, who confirmed Mashals findings, said there was no way people buying the slum tenements could get brand-new homes under the rehab scheme, since the photo passes would be in the sellers names.
It is a very fluid situation in Dharavi. After you finish a survey, the situation changes the very next day, said Mahajan. A top state government source recently told this newspaper that the Dharavi project could well turn out to be a
second Enron.
A lot of behind-the-scenes political manoeuvring is on to ensure that only certain builders get this lucrative project. As reported by TOI in the past, there is a concerted effort by some developers to form a cartel to grab the project. According to sources both in the government and within the real estate industry, a few of the 14 shortlisted developers for the Dharavi project are backed by powerful state politicians. Only five developers will be selected to redevelop the five zones in Dharavi.
In July, the state government twice postponed the opening of the bids, giving the flimsy reason that it had not finalised the final notification for the project. However, sources said there were other reasons for the delay. There is huge money at stake. The project was expected to be cleared before the elections. But there was a last-minute glitch. Now the new government will take a call after it comes to power next month, the source said.