High Court of Bombay Examines Slum Rehabilitation Scheme Sanction Procedure Under D.C. Regulations. Court Considers Whether First Come First Serve Principle Applies to Competing Applications for Slum Redevelopment Under Regulation 33(10) of the Development Control Regulations for the City of Mumbai, 1991.

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

The petitioners, a proposed co-operative housing society of hutment dwellers residing on a plot of land measuring about 15,600 sq. mtrs. in Malad, Mumbai, filed a writ petition under Article 226 of the Constitution challenging the sanction of a composite slum rehabilitation scheme by the Slum Rehabilitation Authority (SRA) in favor of respondent nos. 4 and 5, and the rejection of their own application. The petitioners claimed that they had formed a society and obtained consent of more than 70% of the 326 eligible slum dwellers. They submitted an application for approval under Regulation 33(10) of the Development Control Regulations for the City of Mumbai, 1991 on 8 November 2004, claiming their proposal was complete with Annexures I, II and III. The larger plot, including the petitioners' area, had been declared a slum under Section 4 of the Maharashtra Slum Areas (Improvement, Clearance and Re-development) Act, 1971 and was acquired under Section 14(1) on 19 July 1999. The fourth respondent, a society registered in 1994, had been attempting to develop the area since 1989. It appointed the fifth respondent as developer and applied for Annexure-II approval in 2003. On 9 December 2004, the fifth respondent filed an incomplete application for scheme sanction without Annexures I, II and III. The SRA referred the draft Annexure II to the Additional Collector for simultaneous verification of the lists submitted by both parties. On 2 August 2005, the petitioners' application was rejected, and subsequently, on 25 November 2005, the scheme was sanctioned in favor of the fifth respondent. The petitioners argued that under SRA guidelines, applications must be considered on a first-come-first-serve basis; only if the first applicant fails to obtain the requisite 70% consent can a later application be examined. They contended that the SRA erred in entertaining the respondents' incomplete application and in processing it simultaneously without first deciding the earlier application. The respondents countered that the procedure had evolved and that they had initiated the Annexure-II approval process earlier. They also pointed to the SRA's direction for simultaneous verification. The court examined the procedure under the D.C. Regulations and SRA guidelines, focusing on the requirement of filing complete applications with all annexures and the order of consideration. The court heard arguments on the legal effect of the first-come-first-serve principle in slum rehabilitation schemes and the interplay of the guidelines. The final order and ratio are not available in the provided text.

Headnote

A) Slum Rehabilitation - Approval Procedure - Regulation 33(10) of Development Control Regulations for the City of Mumbai, 1991 - The Court examined the procedure for filing applications for slum development schemes, which requires submission of Annexures I, II, and III simultaneously with the application to SRA. The petitioners filed their application on 08.11.2004 with complete documents, while respondents filed an incomplete application on 09.12.2004, and a complete application only on 03.08.2005. The Court noted the guidelines require simultaneous processing of all annexures. (Paras 2-5, 8)

B) Slum Rehabilitation - First Come First Serve Principle - D.C. Regulation 33(10) - The petitioners contended that applications for slum scheme sanction must be considered on a 'first come first serve' basis, and a second application can only be examined if the first fails to obtain 70% consent of eligible slum dwellers. The Court considered this argument in the context of competing applications. (Paras 5-6)

C) Slum Rehabilitation - Consent of 70% Slum Dwellers - D.C. Regulation 33(10), Appendix IV - A proposed society must have support of 70% of eligible hutment dwellers. The Court examined the claim that both societies could not simultaneously have 70% consent, thus necessitating sequential consideration. (Paras 6-7)

D) Slum Rehabilitation - Validity of Annexure-II Approval - Maharashtra Slum Areas Act, 1971, Section 4, 14 - The Annexure-II list of eligible slum dwellers requires approval by the competent authority. The Court noted the fourth respondent applied for Annexure-II approval in 2003, and the SRA directed simultaneous verification of annexures submitted by both parties. The procedure for direct application to competent authority was also discussed. (Paras 4-5, 8)

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Issue of Consideration

Whether the Slum Rehabilitation Authority erred in sanctioning a composite slum rehabilitation scheme in favor of respondents 4 and 5 without first considering the prior application of the petitioners, and whether the rejection of the petitioners' application was valid

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Law Points

  • Slum rehabilitation scheme
  • first come first serve
  • Annexure-II approval
  • consent of 70% slum dwellers
  • Regulation 33(10) of DCR
  • Maharashtra Slum Areas Act
  • 1971
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Case Details

2006 LawText (BOM) (04) 3

Writ Petition No.2746 of 2005

2006-04-26

H.L. Gokhale, Abhay S. Oka

A.Y. Sakhare, S.M. Gorwadkar, B.G. Saraf, V.A. Thorat, R.M. Kadam, G.D. Utangale, Pradeep Jadhav, S.G. Surana, A.K. Abhyankar, M.U. Pandey

Awdesh Vasistha Tiwari & Ors.

The Chief Executive Officer, Slum Rehabilitation Authority & Ors.

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the decision of the Slum Rehabilitation Authority in sanctioning a slum rehabilitation scheme and rejecting a competing application.

Remedy Sought

Petitioners sought quashing of the sanction of the composite slum rehabilitation scheme in favor of respondents 4 and 5 and quashing of the rejection of their own application.

Filing Reason

Petitioners' application for slum development scheme was rejected on 2 August 2005, and a scheme was sanctioned in favor of respondents over a larger area that included the petitioners' plot.

Issues

Whether the Slum Rehabilitation Authority erred in sanctioning the scheme of respondents without first considering and deciding the prior application of the petitioners Whether the sanction of the scheme and rejection of petitioners' application violated the procedure and guidelines under Regulation 33(10) of D.C. Regulations Whether the applications for slum rehabilitation scheme should be considered on first come first serve basis

Submissions/Arguments

Petitioners argued that their application was prior in time, complete with all annexures, and must be considered first; SRA wrongfully entertained an incomplete later application. Petitioners contended that the scheme requires 70% consent of slum dwellers, and at a time only one society can have such consent, so sequential consideration is necessary. Respondents argued that the procedure had changed over time and they had initiated the approval process earlier by applying for Annexure-II approval directly to the competent authority in 2003. Respondents claimed that the SRA directed simultaneous processing of Annexure-II from both parties, which was in accordance with practice.

Judgment Excerpts

Certain important issues have been raised in this Writ Petition under Article 226 of the Constitution of India regarding the procedure to be followed by the Slum Rehabilitation Authority while considering the Applications made by the owners/ developers/ proposed co-operative societies of slum dwellers. The Petitioners claim that the Petitioner No.20 is a proposed Co-operative Housing Society formed by hutment dwellers residing on plot of land ... An Application was made by the Petitioner No.20 on 08th November, 2004 to the SRA for grant of approval of the Slum Development Scheme under Regulation 33(10) of the Development Control Regulations. The challenge in this Petition is to the sanction of one composite Slum Rehabilitation Scheme in favour of the Respondent Nos.4 and 5 in respect of the entire larger area including the area of the Petitioners. Shri Sakhare ... submitted that as per the guidelines ... after preliminary scrutiny by the engineer of SRA, fees are accepted if all documents are filed alongwith the proposal and thereafter a computer number is given. He submitted that no proposed society can have a better right since the ultimate object of the scheme is only to allot area admeasuring 225 Sq.ft. to every eligible slum dweller through the instrumentality of a society of 70% of the slum dwellers in an area. Therefore the Application made by any proposed society for sanction of SRA Scheme must be considered on what is known as 'first come first serve' basis.

Procedural History

The writ petition was filed under Article 226. Rule was issued. Respondents waived service. By consent, the matter was taken up for final hearing forthwith. Contesting respondents filed replies and petitioners filed rejoinder. The hearing concluded on February 13, 2006, and judgment was reserved and pronounced on April 26, 2006.

Acts & Sections

  • Development Control Regulations for the City of Mumbai, 1991: Regulation 33(10)
  • Maharashtra Slum Areas (Improvement, Clearance and Re-development) Act, 1971: Section 4, Section 14(1)
  • Bombay Public Trusts Act, 1950: Section 36
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