Illegal housing in India consists of huts or shanties built on land not owned by the residents (i.e., squatting) and illegal buildings constructed on land not owned by the builders or developers. Although illegal buildings may afford some basic services, such as electricity, in general illegal housing does not provide services that afford for healthy, safe environments.
Collapses of illegal buildings made with inadequate building supplies and practices have resulted in the death of its occupants. A recent example is the 4th April 2013 collapse of an eight story building in the Shil Phata area of Mumbra, in the greater Mumbai area. 72 people were killed in the collapse.
Strategies to curb or mitigate illegal housing include creating more affordable housing structures, redeveloping the safe illegal buildings, developing a plan of action for residents of shanties or illegal buildings, and policing the construction of illegal buildings or shanties.
Illegal housing is a black economy activity, where individuals either encroach upon property illegally or pay for housing that is illegal. In such cases there are little or no public services or utilities. In some cases electricity or water is accessed illegally. Illness is an issue due to poor water supply and the unavailability of sewage and garbage services.
To ensure continued residency in the illegally occupied area, its inhabitants generally bribe corrupt officials, corruption being an everlasting problem in India. More often than not, relationships with municipal offices, police and local representatives are organised by a third party with interests in ensuring that the illegal housing is not demolished. Because illegal property is not taxed, there is no income stream to pay for health or other municipal services that are required for its inhabitants.
Stamp Duty Issues—contempt of courts
There is rampant contempt of courts & therefore it is very difficult to get the written word of the law enforced. Maharashtra is one of the forward looking states but then too, it is very difficult to put a stop to the illegality of the contempt of courts because the bureaucracy & the political establishment is simply not bothered. One of the examples of contempt of courts taking place on everyday basis & almost in every valuation of property is reproduced below to give you an idea of the ground reality.