Bombay High Court Disposes of Public Interest Litigation Concerning Implementation of JNNURM Housing Scheme in Nashik. The Court Accepts the Municipal Corporation's Assurance to Hand Over 2,060 Dwelling Units by January 2014 and Directs Monitoring Committees to Ensure Proper Utilization of Funds and Submission of Accounts.

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

The case involved a Public Interest Litigation filed by Nirbhay Foundation through Manoj S. Pingle, seeking accountability in the implementation of the central government assisted scheme 'Provision of Basic Services to the Urban Poor and Housing for the Urban Poor' under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in Nashik Municipal Corporation area. The petition raised concerns about the execution of the contract for construction of houses under the scheme, sought an account of the monies spent, and prayed for action against officers responsible for delays in completing the project. The High Court, by an earlier order dated 23 August 2013, directed the Nashik Municipal Corporation to file an affidavit setting out a proper account of the monies received from the Central Government for the construction and the monies which had been expended, along with an explanation of how many houses had been constructed and how many had been handed over. In response, the City Engineer of the Municipal Corporation filed a comprehensive affidavit. The affidavit detailed that a consultant was appointed in 2006 to prepare a detailed project report, which was subsequently approved. The scheme aimed to construct 11,200 dwelling units, out of which 4,908 units had been completed and 2,060 were ready for occupation. The project cost was Rs.248.44 crores, with the Municipal Corporation having received Rs.119.97 crores from the Central Government. The delay was attributed to fierce opposition from local residents and land availability constraints that forced scaling down from an initial target of 16,000 units to 11,200 units, which was sanctioned by the Central Committee on 19 July 2012. The time for completion was extended until 31 March 2015. The affidavit further stated that the scheme was monitored by state level nodal agencies, third party inspection agencies, and a central sanctioning and monitoring committee. An audit had also been conducted by the office of the Accountant General. The court was assured that the 2,060 ready units would be handed over to beneficiaries before the end of January 2014. The Court, after considering the factual background, found that the scheme had adequate monitoring mechanisms at the central and state levels and that the utilization of funds was being scrutinized. It accepted the assurance given by the Municipal Corporation that possession would be handed over by January 2014. The Court disposed of the petition, observing that no further directions were necessary except that the monitoring committees should take due steps to ensure proper utilization of funds and submission of accounts. No order as to costs was passed.

Headnote

A) Constitutional Law - Public Interest Litigation - Exercise of High Court's Writ Jurisdiction Under Article 226 - Constitution of India, 1950, Article 226 - The petitioner sought compliance and accounting in implementation of JNNURM housing scheme in Nashik. The Municipal Corporation filed an affidavit detailing funds received and expended, progress of construction, and reasons for delay including local opposition. The scheme was already being monitored by central and state committees, and an audit by Accountant General had been conducted. The Corporation assured that 2,060 ready dwelling units would be handed over to beneficiaries by January 2014. Held, the petition was disposed of without further directions, with the expectation that the monitoring committees would ensure proper utilization of funds and submission of accounts. (Paras 1-7)

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Issue of Consideration

Whether the High Court should continue to entertain the Public Interest Litigation seeking accountability and compliance in the implementation of the JNNURM housing scheme given the response filed by the Municipal Corporation and the existing monitoring by central and state committees

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Final Decision

The Public Interest Litigation was disposed of. The court accepted the assurance that possession of 2,060 dwelling units would be given by January 2014, and directed the monitoring committees to ensure proper utilization of funds and submission of accounts. No order as to costs.

Law Points

  • In PIL concerning implementation of central scheme with existing monitoring mechanisms
  • court may accept assurances and not issue further directions
  • need for proper utilization of funds and accountability
  • monitoring committees to ensure proper accounting and expenditure
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Case Details

2013 LawText (BOM) (10) 133

PUBLIC INTEREST LITIGATION NO.5 OF 2013

2013-10-25

Dr. D.Y. Chandrachud, M.S. Sonak

2013:BHC-AS:26957-DB

Ms. Indrayani M. Koparkar for Petitioner, Mr. R.S. Apte, Sr. Advocate with Mr. Vaibhav P. Patankar for Respondent no.1, Mr. Jaydeep Deo, AGP for Respondent no.2, Mr. N.R. Prajapati for Respondent no.3

Nirbhay Foundation through Manoj S. Pingle

Nashik Municipal Corporation and Others

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Nature of Litigation

Public Interest Litigation seeking accountability in the implementation of JNNURM housing scheme for urban poor

Remedy Sought

Compliance of contract for construction of houses, account of money spent, and action against officers responsible for delay

Filing Reason

Alleged delay and non-accountability in the construction and possession of dwelling units under JNNURM in Nashik

Previous Decisions

The High Court on 23 August 2013 directed the Nashik Municipal Corporation to file an affidavit regarding funds and construction status; the affidavit was filed by the City Engineer

Issues

Whether the High Court should continue to entertain the Public Interest Litigation seeking accountability and compliance in the implementation of the JNNURM housing scheme given the response filed by the Municipal Corporation and the existing monitoring by central and state committees

Submissions/Arguments

Petitioner argued that the Municipal Corporation had not properly accounted for funds and that construction was delayed, causing prejudice to urban poor. Respondents contended that the scheme was being monitored by central and state committees, an audit had been conducted, and that 2,060 units would be handed over by January 2014.

Ratio Decidendi

In a public interest litigation concerning the implementation of a centrally monitored scheme, when the authority provides detailed accounts and assurances, and there exist monitoring mechanisms, the court may dispose of the petition without issuing further directions, while emphasizing proper utilization of funds and accountability.

Judgment Excerpts

The grievance in the petition which has been filed in public interest, pertains to the execution of a central government assisted scheme called 'Provision of Basic Services to the Urban Poor and Housing for the Urban Poor' under Jawaharlal Nehru National Urban Renewal Mission (`JNNURM'). The Court has been assured that possession would be handed over before the end of January-2014 to the beneficiaries of 2,060 dwelling units. Since the Central and the State committees are monitoring the progress of the work and the utilization of funds, no further directions are necessary from this court, save and except to observe that both the monitoring committees shall take due and necessary steps to ensure the proper utilization of funds.

Procedural History

The Public Interest Litigation was filed seeking compliance of contract and account of funds under JNNURM. On 23 August 2013, the High Court directed the Nashik Municipal Corporation to file an affidavit regarding receipt and expenditure of funds and progress of construction. The City Engineer filed an affidavit in response. On 25 October 2013, the matter was taken up for hearing and final disposal, and the petition was disposed of.

Acts & Sections

  • Constitution of India, 1950: Article 226
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