Bombay High Court Considers Writ Petitions Challenging MHADA's Cancellation of Police Housing Lease — Allotment Under Slum Rehabilitation Scheme at Gaikwad Nagar Questioned

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Case Note & Summary

The High Court of Judicature at Bombay heard two connected writ petitions under Article 226 of the Constitution of India challenging an order of the Maharashtra Housing and Area Development Authority (MHADA) dated 9th October 2001. That order cancelled a lease agreement executed on 14th May 1999 between MHADA and the Maharashtra Police Cooperative Housing Federation Limited, the petitioner in W.P. No. 2741 of 2001. The Federation, an apex body of cooperative housing societies of police personnel, had been allotted a plot of land measuring about 23 hectares at Gaikwad Nagar, Malvani, Mumbai, for a slum rehabilitation and housing scheme. The other petitioner, Dadasaheb Gaikwad Nagar Punarvasan Samiti, represented 427 members occupying part of that land who were to be rehabilitated under the scheme. The Federation had been formed after a successful police housing project at Kandivali; with encouragement from the Chief Minister, it organized nearly 5000 police and government employees, collected a corpus of Rs.6 crores, and sought land for housing. After correspondence and joint surveys, the State Government under Regulation 16 of the Maharashtra Housing and Area Development (Disposal of Lands) Regulations, 1982 directed MHADA to allot a suitable plot. MHADA conveyed its willingness vide letter dated 9th December 1997, noting that the land at Malvani was suitable and that rehabilitation of families from Sanjay Gandhi National Park should also be undertaken jointly. On 4th March 1998, the State accepted the Federation's proposal and directed allotment with the condition of including government employees. MHADA then, by letter dated 11th May 1999, formally allotted the land under a lease at an annual rent of Rs.1001/-, subject to conditions: the Federation had to rehabilitate 2500 existing tenement holders in the colony by providing them 225 sq.ft. tenements at its own cost, hand over 376 tenements and surrender 240 police service quarters to MHADA, and obtain sanctions from the Slum Rehabilitation Authority. Possession was taken on 15th May 1999 after payment of lease rent. The Federation obtained necessary approvals, including Letter of Intent from SRA and NOCs, and some construction began. In this context, a public interest litigation (W.P. 984 of 1999) was filed by some tenants, which was pending. Thereafter, the impugned order of 9th October 2001 cancelled the lease and directed the Federation to demolish eight buildings and hand over vacant possession. The petitions challenged this order as arbitrary and illegal. The High Court noted the common questions of law and fact and heard the parties through counsel. The judgment excerpt provided, however, only narrates the factual background and does not contain the court's analysis, findings, or final operative directions. Accordingly, the final decision and ratio are not extracted from the available text.

Issue of Consideration

Whether the order dated 9th October 2001 passed by the Maharashtra Housing and Area Development Authority cancelling the lease agreement dated 14th May 1999 is lawful and valid.

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Case Details

2005 LawText (BOM) (05) 259

Writ Petition No.2783 of 2001 and Writ Petition No.2741 of 2001

2005-05-06

H.L.Gokhale, S.C.Dharmadhikari

U.U.Lalit, Ashish Patil, Ms. Anklesaria, G.W.Mattos, E.P.Bharucha, Vaibhav Joglekar, G.S.Mattos, S.G.Surana, Pramod Patil, K.K.Singhvi, B.A.D'Lima, S.G.Aney, Chetan Kapadia, K.R.Belosay, P.S.Dani, Milind Deshmukh

Dadasaheb Gaikwad Nagar Punarvasan Samiti & Ors., Maharashtra Police Coop. Housing Federation Limited

State of Maharashtra & Ors.

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging an order of MHADA cancelling a lease agreement for land allotted for a police housing scheme.

Remedy Sought

Quashing of MHADA order dated 09-10-2001 and restoration of lease agreement dated 14th May 1999.

Filing Reason

MHADA cancelled the lease agreement and directed the petitioners to hand over vacant possession by demolishing the eight buildings constructed on the land.

Previous Decisions

A public interest litigation (W.P. 984 of 1999) was filed by some tenants of MHADA challenging the initial allotment; that matter was pending before the High Court.

Issues

Whether the order dated 9th October 2001 passed by MHADA cancelling the lease agreement dated 14th May 1999 is legal and valid.

Judgment Excerpts

By these petitions under Article 226 of the Constitution of India, petitioners challenge an order dated 9th October 2001 passed by Vice President and Chief Executive Officer of Maharashtra Housing and Area Development Authority (MHADA for short). By this order he cancelled and set aside the lease agreement dated 14th May 1999 entered into between MHADA and the petitioner which has filed Writ Petition No.2741 of 2001. On 4th March 1998, the State exercised its powers under Regulation 16 of the Maharashtra Housing and Area Development (Disposal of lands) Regulations, 1982 and directed that the proposal of Mr.Choudhary/ Federation should be accepted and a suitable plot of land be allotted to the Federation. The land bearing C.T.S.No.263 (part), Gaikwad Nagar admeasuring about 23 hectares is allotted to the Federation in pursuance of a decision incorporated in Resolution of the Board bearing No.5431 dated 1st April 1999. The terms and conditions of allotment were set out in this letter. the society shall implement the rehabilitation scheme on the said land and accommodate all the existing 2500 tenements situated at Gaikwad Nagar Colony by allotting each tenant 225.00 sq.ft. carpet area at its own cost. pursuant to the payment of annual lease rent a lease deed was executed on 14th May 1999 and on 15th May 1999 possession of the said land was taken by federation.

Procedural History

Federation applied for land in 1995; State directed MHADA to allot in 1998; MHADA allotted land in 1999 with conditions; lease executed and possession taken; after construction started, PIL filed by tenants in 1999 challenging allotment; MHADA issued cancellation order on 09-10-2001; petitioners filed writ petitions challenging cancellation; High Court heard both petitions together.

Acts & Sections

  • Constitution of India: Article 226
  • Maharashtra Cooperative Societies Act, 1960:
  • Maharashtra Housing and Area Development (Disposal of Lands) Regulations, 1982: Regulation 16
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