Bombay High Court Examines Challenge to Apex Grievance Redressal Committee Order Rejecting Developer's Application in Slum Rehabilitation Scheme Proposal Dispute. The Issue Centers on SRA's Jurisdiction to Entertain a Second Proposal During Pendency of an Earlier Proposal and the Stage of Acceptance Under Regulation 33(10) of Development Control Regulations, 1991.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The litigation concerned the jurisdiction of the Slum Rehabilitation Authority to entertain a second developer's proposal for implementation of a Slum Rehabilitation Scheme while an earlier proposal was pending. The petitioner, a developer, had been appointed by the slum dwellers' society and submitted a proposal on 1 August 2018 under Regulation 33(10) of the Development Control Regulations, 1991, claiming majority consent and having obtained several no-objection certificates. A rival developer, respondent No.5, submitted a competing proposal on 12 September 2018, which was initially rejected twice by SRA. However, following complaints and a report from the Co-operative Officer, SRA issued a notice dated 4 February 2019 for a general body meeting to elect between the two developers. The meeting held on 20 February 2019 resulted in respondent No.5 being selected, and its proposal was accepted and approved. The petitioner's earlier writ petition challenging the election notice was withdrawn with liberty to approach the Apex Grievance Redressal Committee. The AGRC dismissed the petitioner's application on 29 June 2020; on a remand by the High Court, it dismissed again on 6 September 2019/2021. The present writ petition challenged the AGRC order and underlying SRA actions. The core legal issues were whether SRA had jurisdiction to consider a subsequent proposal during pendency of an earlier proposal, the exact stage at which a proposal is considered 'accepted' under the DCR so as to bar later proposals, whether the earlier rejection of respondent No.5's proposal attained finality, and whether SRA could conduct an election between rival developers. The petitioner argued that its proposal was complete and backed by 56% consent and four NOCs, that respondent No.5's proposal had been rejected twice and those orders were final, and that the Division Bench in Awdesh Vasistha Tiwari prohibited consideration of any later proposal until the earlier one was rejected. The petitioner also contended that there is no provision for re-election and that the AGRC's order suffered from non-application of mind by not recording reasons on the impermissibility point. The SRA respondents argued that the petitioner's proposal was never accepted and was only at pre-scrutiny stage; that the bar in Awdesh Vasistha Tiwari applies only to complete proposals warranting further scrutiny, as clarified in Atesham Ahmed Khan and Circular No.144; and that due rival claims, the SRA properly conducted voting under Circular No.169 to verify 51% consent. The extracted text does not include the court's final analysis, findings, or operative order; it ends during the SRA's submissions, after reference to voting where 23 hutment dwellers unanimously voted for respondent No.5. Therefore, the final decision and ratio are not available from the provided portion.

Headnote

A) Slum Rehabilitation - Jurisdiction of Slum Rehabilitation Authority - Consideration of Subsequent Proposal During Pendency of Earlier Proposal - Development Control Regulations, 1991, Regulation 33(10) - The petition raised whether SRA could entertain Respondent No.5's second proposal while Petitioner's earlier proposal was pending; Petitioner relied on Awdesh Vasistha Tiwari to contend that until rejection of the earlier proposal, no later proposal may be considered, while SRA contended that only accepted complete proposals operate as a bar and a proposal under pre-scrutiny does not prevent consideration of later proposals under Atesham Ahmed Khan and Circular No.144; final determination not available in extracted text (Paras 1, 5, 7, 10).

B) Slum Rehabilitation - Acceptance of Proposal - Stage at Which Proposal is Deemed Accepted - Development Control Regulations, 1991, Regulation 33(10) - The court considered the exact stage at which a proposal becomes accepted so as to bar subsequent proposals; Petitioner contended acceptance occurred on submission with endorsements and NOCs, while SRA contended the proposal was at pre-scrutiny and not accepted; no final ruling appears in extracted text (Paras 1, 9, 10).

C) Slum Rehabilitation - Rejection of Rival Proposal - Effect of Finality - Development Control Regulations, 1991, Regulation 33(10) - Petitioner argued that Respondent No.5's proposal was rejected twice on 19 September 2018 and 1 November 2018 and those rejections attained finality absent challenge, making later acceptance illegal; this issue was before the court but final outcome not stated in extract (Paras 5, 7).

D) Slum Rehabilitation - Appointment of Developer - Validity of Election Between Rival Developers - Development Control Regulations, 1991, Regulation 33(10) - Petitioner challenged SRA's direction for re-election and secret ballot between two developers, arguing there is no legal provision for such election once a valid proposal with majority consent exists; SRA relied on Circular No.169 to verify mandatory 51% consent through voting; final determination not available in extracted text (Paras 5, 7, 11).

E) Administrative Law - Apex Grievance Redressal Committee Order - Non-Application of Mind - Not mentioned - Petitioner contended that AGRC failed to consider the specific ground of impermissibility of considering a subsequently filed proposal and recorded no reasons, thereby vitiating its order; the court's final view on this challenge is not included in extract (Paras 8).

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Issue of Consideration

Whether the Slum Rehabilitation Authority has jurisdiction to entertain a second proposal submitted by a developer for implementation of a Slum Rehabilitation Scheme during pendency of an earlier proposal of another developer, and the exact stage at which a proposal can be said to have been accepted so as to oust consideration of any further proposal

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Final Decision

Final decision not mentioned in the extracted judgment text; the provided portion ends during respondent SRA's submissions without the court's analysis, findings, or operative order.

Law Points

  • Legal points not extracted
  • Jurisdiction of Slum Rehabilitation Authority to entertain second proposal during pendency of first proposal
  • stage of acceptance under Development Control Regulations 1991 Regulation 33(10)
  • requirement of 51% consent of slum dwellers
  • finality of rejection orders
  • bar on subsequent proposals under Awdesh Vasistha Tiwari
  • exception for incomplete proposals under Atesham Ahmed Khan
  • procedure under Circular No.144
  • Circular No.169 for verification of consent
  • non-application of mind by Apex Grievance Redressal Committee
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Case Details

2025 LawText (BOM) (05) 19

WRIT PETITION NO.1769 OF 2023

2024-05-10

Sandeep V. Marne

Citation not available, 2025:BHC-OS:1

Anoshak Daver, Omkar Kulkarni, Vijay D. Patil, Shashikant Surana, Madhur Surana, Karl Tamboly, Jagdish G. Aradwad (Reddy)

Vilas Rambhau Chaudhari, Sole Proprietor of M/s. Rishika Developers

Slum Rehabilitation Authority, Chief Executive Officer (SRA), Executive Engineer (SRA-III), Co-operative Officer (Zone I), M/s. Safegain Investments & Infrastructure, Shramasafalya SRA Co-operative Housing Society, Apex Grievance Redressal Committee

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the order of the Apex Grievance Redressal Committee and SRA approvals in a slum rehabilitation scheme developer selection dispute

Remedy Sought

Petitioner sought quashing of AGRC order dated 6 September 2021 rejecting Application No.265 of 2019, quashing approval dated 12 September 2019 granted to Respondent No.5, notice dated 4 February 2019 directing re-election, result of re-election held on 12 February 2019, and processing of petitioner's own proposal dated 1 August 2018

Filing Reason

AGRC dismissed petitioner's application challenging acceptance of rival developer's proposal despite pendency of petitioner's earlier proposal

Previous Decisions

AGRC initially dismissed application on 29 June 2020; Bombay High Court in Writ Petition (Stamp) No.4402 of 2020 remanded the application and continued interim relief; AGRC again dismissed the application on 6 September 2019/2021; petitioner filed present writ petition challenging that order. Petitioner had earlier filed Writ Petition (L) No.492 of 2019 challenging notice dated 4 February 2019, but withdrew it on 1 October 2019 with liberty to approach AGRC.

Issues

Whether Slum Rehabilitation Authority has jurisdiction to entertain a second proposal submitted by a developer for implementation of a Slum Rehabilitation Scheme during pendency of an earlier proposal of another developer At what stage a proposal under Regulation 33(10) of Development Control Regulations, 1991 is deemed accepted so as to bar consideration of subsequent proposals Whether rejection of Respondent No.5's proposal on 19 September 2018 and 1 November 2018 attained finality and barred later acceptance Whether SRA could conduct re-election/secret ballot between two rival developers for appointment after one developer had submitted a valid proposal with majority consent Whether AGRC's order suffered from non-application of mind by not recording reasons on the impermissibility of considering a subsequently filed proposal

Submissions/Arguments

Petitioner argued that SRA erred in entertaining Respondent No.5's proposal during pendency of petitioner's valid proposal; petitioner's proposal had 56% consent and four NOCs; Respondent No.5's proposal was rejected twice and those orders attained finality; Awdesh Vasistha Tiwari barred consideration of subsequent proposal; conducting fresh election between developers was illegal; AGRC failed to consider this point. Respondent SRA argued that petitioner's proposal was never accepted and was at pre-scrutiny stage; the bar in Awdesh Vasistha Tiwari applies only to complete proposals fulfilling DCR 33(10) that warrant further scrutiny; based on Atesham Ahmed Khan, Circular No.144, and Platinum Realty; due rival claims, voting was conducted under Circular No.169 to verify mandatory 51% consent; on 20 February 2019, 23 hutment dwellers unanimously voted for Respondent No.5.

Ratio Decidendi

Not mentioned in extracted text because the judgment excerpt does not contain the court's final reasoning or operative directions.

Judgment Excerpts

Petition raises the issue of jurisdiction of Slum Rehabilitation Authority to entertain second proposal submitted by a Developer for implementation for Slum Rehabilitation Scheme during pendency of the earlier proposal of another Developer. Connected with this issue, is the issue about the exact stage at which a proposal for implementation of Slum Rehabilitation Scheme can be said to have been ‘accepted’ so as to oust consideration of any further proposal. Rule. Rule made returnable forthwith.

Procedural History

Petitioner submitted proposal on 1 August 2018 under Regulation 33(10) of Development Control Regulations, 1991. Respondent No.5 submitted rival proposal on 12 September 2018, which was rejected on 19 September 2018 and 1 November 2018. Petitioner filed Writ Petition (L) No.492 of 2019 challenging notice dated 4 February 2019 for re-election; general body meeting held on 20 February 2019 resolved to appoint Respondent No.5; proposal of Respondent No.5 accepted and approved on 12 June 2019/12 September 2019. Petitioner withdrew Writ Petition (L) No.492 of 2019 on 1 October 2019 with liberty to approach AGRC and filed Application No.265 of 2019 before AGRC. AGRC dismissed application on 29 June 2020; Bombay High Court in Writ Petition (Stamp) No.4402 of 2020 remanded the application and continued interim relief; AGRC again dismissed on 6 September 2019/2021; present writ petition filed challenging that order.

Acts & Sections

  • Development Control Regulations, 1991: Regulation 33(10)
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