High Court Dismisses Writ Petition Challenging AGRC Recommendations in Slum Rehabilitation Scheme. The AGRC acted within its jurisdiction under the Slum Act, 1971, in making recommendations regarding the amnesty scheme for financial institutions involved in stalled slum rehabilitation projects.

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

The dispute arose from a writ petition filed by JC Flowers Asset Reconstruction Pvt. Ltd. and others against the State of Maharashtra and the Apex Grievance Redressal Committee (AGRC) regarding recommendations made by the AGRC on 20 April 2026. The AGRC's recommendations included withdrawing benefits of an amnesty scheme for financial institutions and allowing the Slum Rehabilitation Authority (SRA) to appoint a new developer for a stalled slum rehabilitation scheme involving approximately 7200 eligible slum dwellers. The petitioners challenged the AGRC's jurisdiction and the process followed, arguing that the AGRC lacked the authority to make such recommendations and that the principles of natural justice were violated as they were not given a proper hearing. The court analyzed the AGRC's powers under Section 34A of the Slum Act, 1971, which allows it to hear appeals and matters referred by the State Government. The court concluded that the AGRC acted within its jurisdiction and that the recommendations were valid. The court also found that the petitioners had been given adequate opportunity to present their case, thus upholding the AGRC's decision. The court ultimately dismissed the writ petition, affirming the AGRC's authority and the necessity of timely implementation of the slum rehabilitation scheme to protect the rights of slum dwellers.

Headnote

A) Administrative Law - Jurisdiction of AGRC - AGRC's Authority to Make Recommendations - Slum Act, 1971, Section 34A - The AGRC is empowered to make recommendations to the State Government regarding the implementation of stalled slum rehabilitation schemes, as per the provisions of the Slum Act, 1971. The court held that the AGRC acted within its jurisdiction when it made recommendations concerning the amnesty scheme for financial institutions involved in slum rehabilitation projects (Paras 20-34).

B) Natural Justice - Right to Hearing - Breach of Natural Justice - Slum Act, 1971 - The petitioners claimed that the AGRC violated principles of natural justice by not providing an opportunity to be heard. The court found that the AGRC had issued notices and conducted hearings, thus upholding the procedural fairness in its decision-making process (Paras 35-40).

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Issue of Consideration

Whether the AGRC had the jurisdiction to make recommendations regarding the amnesty scheme and the implications of natural justice in the decision-making process.

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Final Decision

The court dismissed the writ petition, affirming the AGRC's jurisdiction and the validity of its recommendations regarding the amnesty scheme for financial institutions involved in the stalled slum rehabilitation project.

Law Points

  • Jurisdiction of AGRC
  • Natural Justice
  • Slum Rehabilitation
  • Amnesty Scheme
  • Insolvency Resolution Process
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Case Details

2026 LawText (BOM) (11) 18

Writ Petition No. 8052 of 2026

2026-11-02

N.J. Jamadar

Mr. Rohan Savant, Ms. S. Choudhary, Mr. Mihir Utekar, Prakhar Tandon, Mr. Agnel Carneiro, Mr. Tushar Cooper, Mr. P.V. Nelson Rajan, Mr. Bhushan Deshmukh, Mr. Jagdish G. Aradwad, Mr. Mayur Khandeparkar, Mr. Nadeem Shama

JC Flowers Asset Reconstruction Pvt. Ltd.

State of Maharashtra and Ors.

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Nature of Litigation

Writ petition challenging recommendations made by the AGRC regarding a slum rehabilitation scheme.

Remedy Sought

Petitioners sought to quash the AGRC's recommendations and restore the benefits of the amnesty scheme.

Filing Reason

Petitioners alleged lack of jurisdiction of the AGRC and violation of natural justice.

Issues

Jurisdiction of AGRC to make recommendations Breach of natural justice in the decision-making process

Submissions/Arguments

Petitioners argued AGRC lacked jurisdiction and violated natural justice Respondents contended AGRC acted within its powers and addressed slum dwellers' rights

Ratio Decidendi

The AGRC has the authority to make recommendations under Section 34A of the Slum Act, 1971, and the principles of natural justice were upheld in the proceedings.

Judgment Excerpts

Rule made returnable forthwith, and, with the consent of the learned Counsel for the parties, heard finally. The AGRC is empowered to exercise the powers and perform functions in regard to the issues and matters which are referred to it by the State Government. The slum dwellers are bearing the brunt of the defaults and inaction on the part of the erstwhile developer as well as the financial institutions without any fault on their part.

Procedural History

The writ petition was filed against the AGRC's recommendations made on 20 April 2026. The AGRC's recommendations were challenged on grounds of jurisdiction and natural justice. The court reserved its judgment on 19 October 2026 and pronounced it on 2 November 2026.

Acts & Sections

  • Slum Act, 1971: 34A
  • Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002:
  • Insolvency and Bankruptcy Code, 2016:
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