Bombay High Court Upholds Removal of Developer in Slum Rehabilitation Project Due to Non-Compliance with Scheme Conditions. Order of CEO SRA Upheld as Developer Found to Have Violated Terms of Agreement and Failed to Complete Project.

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

The petitioner, a company engaged as a developer for a slum rehabilitation project on a property owned by a cooperative housing society, filed a writ petition challenging its removal as developer by the Chief Executive Officer of Slum Rehabilitation Authority and the confirmatory order of the High Power Committee. The property, declared a slum under the Slum Act, had a history of development attempts starting in 1985 when the society appointed the petitioner as developer. An initial agreement in 1986 was followed by delays due to litigation and planning changes. In 1995, a new development agreement was executed to avail benefits under the SRD Scheme introduced by DCR 1991. Under this scheme, the petitioner obtained IOD and CC in 1996 and completed construction of two buildings by 1998, receiving TDR. Subsequently, the SRA Scheme with more attractive terms came into force in 1997. The petitioner and society entered into a supplementary agreement in 1998 to convert the project to the SRA Scheme. The CEO SRA permitted conversion on 19.01.1998, subject to conditions including submission of individual agreements and Annexure-II certified by the Additional Collector for a specified number of slum dwellers. Disputes arose over compliance with these conditions and the validity of the conversion, leading to the petitioner's removal. The High Court considered the historical facts and the noting of the CEO SRA to determine the legality of the removal. (The judgment text provided does not include the final decision.)

Headnote

A) Slum Rehabilitation - Appointment and Removal of Developer - Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, Sections 4, 8(4); Development Control Regulations 1991 and 1997 - The petitioner was appointed developer for a slum rehabilitation project under an agreement with the slum dwellers' society. The CEO SRA removed the petitioner as developer on 24.02.2012, and the High Power Committee upheld this decision. The writ petition challenged these orders, with the court examining the factual background and compliance with statutory requirements (Paras 2-3, 13).

B) Slum Rehabilitation - Conversion from SRD to SRA Scheme - DCR 33(10), Maharashtra Regional and Town Planning Act, 1966, Section 37 - The developer and society sought conversion from the earlier SRD Scheme to the SRA Scheme to avail enhanced benefits. The CEO SRA permitted conversion subject to conditions, including obtaining consent of 70% slum dwellers and submission of certified Annexure-II. The noting dated 19.01.1998 outlined these conditions, and their fulfillment became a contentious issue in determining the legality of the developer's removal (Para 13).

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Issue of Consideration

Whether the removal of the petitioner as developer by the CEO SRA and its confirmation by the High Power Committee was legal and valid.

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Law Points

  • developer removal
  • slum rehabilitation
  • conversion from SRD to SRA
  • compliance with conditions
  • writ of certiorari
  • judicial review
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Case Details

2014 LawText (BOM) (06) 24

Writ Petition No. 5 of 2013 with Chamber Summons No. 158 of 2013

2014-06-11

S. J. Vazifdar, M. S. Sonak

2014:BHC-OS:5528-DB

Mr. Pradeep Sancheti (Sr. Adv.) with Mr. Anirudha Joshi, Mr. Rohan Cama, Mr. Vishal Talsania, Mr. Hetal Thakore, Mr. Kunal Parekh, Mr. Nilesh Ukey, Mr. Dhavol Deshpande, Mrs. Dorius Jone i/b Thakore Jariwalla and Associates for Petitioner; Mr. Ravi Kadam (Sr. Adv.) with Mr. G. D. Utangale, Mr. B. V. Phadnis i/b Utangale & Co. for Respondent No. 1; Mr. Pravin Samdani with Mr. Snehal Shah, Mr. Naushad Engineer, Ms. Deepti Pande, Mr. Jonardhan Narayanan, Ms. Smruti Rasal i/b Narayanan & Narayanan for Respondent No. 3; Mr. Venkatesh Dhond (Sr. Adv.) with Mr. Rakesh K. Agarwal i/b Mr. Rakesh Agarwal for Respondent No. 4; Mr. S. U. Kamdar (Sr. Adv.) with Mr. Tushar Dahibawkar i/b Dahibawkar & Co. for Intervenors

Susme Builders Private Limited

Chief Executive Officer, Slum Rehabilitation Authority; High Power Committee; Om Namo Sujlam Suflam Co-operative Housing Society; J.G. Developers Private Limited

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging orders of the Slum Rehabilitation Authority removing the petitioner as developer of a slum rehabilitation project.

Remedy Sought

The petitioner sought a writ of certiorari to quash the order of the CEO SRA dated 24.02.2012 and the order of the High Power Committee confirming the removal.

Filing Reason

The CEO SRA removed the petitioner as developer by order dated 24.02.2012, which was upheld by the High Power Committee. The petitioner challenged these orders as illegal.

Previous Decisions

The CEO SRA passed an order dated 24.02.2012 removing the petitioner as developer. The High Power Committee upheld this order.

Issues

Whether the removal of the petitioner as developer by the CEO SRA and the High Power Committee was valid and in accordance with law?

Judgment Excerpts

The CEO, SRA by an order dated 24.02.2012 removed the petitioner as the developer. SLUM REHABILITATION AUTHORITY No.SRA/Ch.E/3759 Date: 19 January 1998. Sub: Conversion Scheme of old approved SRD Scheme into new scheme on plot bearing CTS Nos.7627 & 7627 (1 to 852) of Village Kole Kalyan, Vakola, Santacruz (E) for Om Namo Sujalam Sufalam Co-op. Hsg., Society Ltd. The proposal of conversion of old approved SRD scheme into new scheme has been submitted by Architect Shri. Prabhakar Dabholkar on behalf of Om Namo Sujalam Sufalam Co-op. Hsg. Society Ltd. (Regd). ... This scheme was discussed with C.E.O. (SRA) earlier. The main objections were non-compliance of the submission of Annexure-II in the prescribed format: (1) Individual Agreement of the slum dwellers. (2) Annexure-II has now been certified by Addl. Collector for additional 81 slum dwellers out of 91 slum dwellers, which Society is claimi... (truncated)

Procedural History

The petitioner filed Writ Petition No. 5 of 2013 challenging the orders of the CEO SRA and the High Power Committee. Chamber Summons No. 158 of 2013 was filed for intervention. The court issued rule and with consent of parties, the rule was made returnable and finally disposed of at the stage of admission.

Acts & Sections

  • Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971: 4, 8(4)
  • Maharashtra Regional and Town Planning Act, 1966: 22(m), 37
  • Companies Act, 1956:
  • Maharashtra Co-operative Societies Act, 1960:
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High Court Bombay High Court Upholds Removal of Developer in Slum Rehabilitation Project Due to Non-Compliance with Scheme Conditions. Order of CEO SRA Upheld as Developer Found to Have Violated Terms of Agreement and Failed to Complete Project.