MUMBAI: The BMC will now pay money to people whose homes are affected by development projects.
The civic standing committee on Wednesday cleared a proposal to give cash compensation based on market rates to not just the tenants on BMC land who are hit by projects but also affected slum dwellers.
A senior civic official said as part of the cash compensation scheme, project-affected persons (PAPs) living in structures built before 1964, known as tolerated structures, will be given compensation based on market rates.
“This will be 1.2 times the ready reckoner rates of the area. For slums, it will be 0.75 times the ready reckoner rates or Rs 50 lakh, whichever is higher. But this scheme will only be applicable if the projects are categorised as extremely essential,” the official said.
The BMC does not have enough tenements to house PAPs and has decided to pay them instead. It will need to house around 50,000 PAPs over the next two years.
SP MLA and corporator Rais Shaikh said this will incentivise construction of illegal slums.