Slum Rehabilitation Authority (SRA) schemes have rehoused lakhs of Mumbai families in new buildings. The flats are given free, or at a nominal cost, on condition that the family lives in them. That is why the law restricts their sale for a period after allotment. The period was shortened in 2024, and many families are now asking whether, and how, they can sell.
What changed in 2024
Section 3E of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 bars the allottee of a rehabilitation tenement from transferring it for a fixed period. The period was ten years. A 2023 amendment bill reduced it to five years, and it became law as Maharashtra Act XV of 2024, published on 19 January 2024.
The rules at a glance
| Question | Position |
|---|---|
| Lock-in period | 5 years (reduced from 10 years in 2024). Check your allotment letter for the date it runs from |
| Transfer during the lock-in | Prohibited, whether by sale, gift, lease or “otherwise” |
| Transfer after the lock-in | Needs the permission of the SRA, as per its current procedure |
| Consequence of a prohibited transfer | Action under Section 3E(2), which can include eviction |
Why “agreements” and power-of-attorney deals are risky
During the lock-in, flats are often “sold” through a notarised agreement, a power of attorney, or simply by handing over possession, with a promise to register later. These deals are risky for both sides:
- the transfer is prohibited, so the buyer gets no recognised title;
- the original allottee can be evicted and the flat taken back; and
- the buyer may lose both the flat and the money.
In Chhaya Kashinath Shinde v. State of Maharashtra (Writ Petition No. 9247 of 2016, judgment uploaded on 31 July 2026), Justice Amit Borkar of the Bombay High Court read the words “or otherwise” in Section 3E widely. The absence of a registered sale or lease deed was not enough to escape the bar. The allottee had executed a power of attorney and handed over possession, and a tenant was later found living in the flat; the SRA’s eviction order was upheld. The Court also made clear that the authorities must prove the transfer: assumption is not enough.
Selling after the lock-in
- Confirm the lock-in has ended, from the allotment and possession documents.
- Clear dues with the society and utility providers.
- Apply for SRA permission for the transfer, with the documents SRA asks for, and pay any charges SRA levies.
- Register the sale at the Sub-Registrar’s office and pay stamp duty. See sale deed registration.
- Society membership: the society transfers the share certificate to the buyer.
Buyer’s checklist
- The SRA allotment letter and the date of possession.
- SRA permission for the transfer.
- The society’s share certificate, NOC and no-dues letter.
- The occupation certificate for the building.
- Identity documents of the allottee and all family members named in the allotment.
- Index II and earlier transfer records, if the flat has changed hands before.
If any of these is missing, do not pay a token amount until you have taken advice.
Eligibility for a rehab flat: the 2000 and 2011 dates
These dates concern who gets a rehabilitation flat, not when it can be sold. Under the scheme, hutment dwellers with proof of residence up to 1 January 2000 are eligible for free rehabilitation. Those from 2000 to 1 January 2011 can get a tenement on payment, under a 2018 amendment and a 2023 government resolution (reported at Rs 2.5 lakh). Disputes about eligibility go to the competent authority and appellate authority under the Act.
Frequently asked questions
I got my SRA flat in 2018. Can I sell it now?
If the five-year period has ended, a sale is possible with SRA permission. Confirm the dates and the current SRA procedure first.
Can I rent out my SRA flat during the lock-in?
A lease or licence can also be treated as a prohibited transfer. Do not let out the flat during the lock-in without checking the position.
My father died. Can the flat be transferred to us?
Transfers to legal heirs on death follow a separate procedure with the SRA and the society. The lock-in is meant to stop sales, not inheritance, but the heirs still need to record the transfer properly.
See also: MHADA flat sales and property matters.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide describes the law as understood in October 2026, after the 2024 amendment. SRA’s procedures and charges change; confirm the current requirements with the SRA before any transaction. It is not legal advice.