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2023 Supreme(Bom) 615

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S. PATEL, NEELA GOKHALE, JJ.
Moinuddin Pashamiya Shaikh & Ors. - Petitioners
Versus
Slum Rehabilitation Authority & Ors. - Respondents
Writ Petition (L) No. 7714 of 2023 With Writ Petition No. 3483 of 2021 With Interim Application (L) No. 9655 of 2023 With Interim Application No. 140 of 2021 With Writ Petition (L) No. 480 of 2020 With Writ Petition (L) No. 720 of 2020 With Writ Petition (L) No. 803 of 2020 With Interim Application No. 629 of 2020 In Writ Petition (L) No. 2217 of 2019 With Writ Petition (L) No. 7486 of 2023 With Writ Petition No. 727 of 2020 With Notice of Motion No. 2 of 2020 With Writ Petition No. 3729 of 2022 With Interim Application No. 720 of 2023 With Interim Application No. 523 of 2019 With Interim Application No. 129 of 2021 With Interim Application (L) No. 17766 of 2022 With Writ Petition No. 3531 of 2021 With Writ Petition (L) No. 25057 of 2021 With Writ Petition No. 3517 of 2021 With Interim Application (L) No. 8648 of 2023 With Writ Petition (L) No. 30845 of 2022 With Writ Petition (L) No. 35590 of 2022 With Writ Petition (L) No. 35621 of 2022
Decided On : 20-06-2023

Advocates Appeared:
For the Petitioners: Mr. Yousuf Khan, Ms. N. Baig, i/b Yousuf Khan, Mr. S. Mansuri, Mr. Ankit Lohia, Mr. Karl Tamboly, with Swapnil Khatri & Avinash Kumar Mishra, (Hussain Hasan Khan & Ors). Mr. G.P. Khan, Ms. Gulnar Mistry, with Niytesh Acharya, Altaf Khan & Supriya Ghadge, Mr. Akash Rebello, with Nitesh Acharya & Altaf Khan, Mr. Nitesh Acharya, with Altaf Khan & Supriya Ghadge, Mr. Altaf Khan, with Supriya Ghadge, Mr. Kunal Dwarkadas, with Tushar Kochale, Ajay Jankar, Bhavika Solanki & Binjal Somania.
For the Respondents:Mayur Khandeparkar, with Aditya Miskita, Viren Miskita, Neha Mehta, Aayushi Gohil & Akshay Dayalkar, i/b M/s. MT Miskita & Co, Dr. Milind Sathe, Senior Advocate, with Jagdish G. Aradwad (Reddy), Mr. Jagdish G. Aradwad (Reddy), Mr. Advait Kulkarni, i/b Jay & Co, Mr. Vijay Singh, I/B Abhijeet Desai, i/b Desai & Desai Legal, Mr. Ronghe, Mrs. Rathina Maravarman, with Akanksha Hambir, Ms. Amita Kamble, i/b Kshitija Wadatkar & Associates, Mr. Yogesh Patil, with Abhijit Patil i/b Vijay Patil, Mr. Girish Utangale, with Saurabh Utangale & Rohan Sawant, Mr. S( ). Gore, AGP, Mr. L.T. Satelkar, AGP, Mr. Hemant Haryan, AGP, Mr. Sukanta Karmarkar, AGP, Mr. Milind More, Addl. AGP, Mr. Kedar Dighe, AGP, Mr. Dushyant Kumar, AGP, Mr. Shantanu M. Shetty, i/b Manohar V. Shetty, Mr. Shashikant Surana, i/b Madhur Surana, Mr. Abhay Narayan Manudhane, Resolution Professional of HDIL present.

Headnote:(A) Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 - The court finds ongoing fraud in slum rehabilitation leading to unauthorized trafficked tenements and failure in compliance by the Slum Rehabilitation Authority (SRA). Transit rent methodology requires clarification and must apply uniformly to all eligible slum dwellers based on locality and date of vacating. The court mandates cooperation in verifying tenement entitlements and payment confirmations. (Paras 1, 2, 5, 11-12, 25, 76).

(B) Slum Rehabilitation - The court asserts that there is no fundamental right to occupy encroached properties, highlighting gap in the government policy that provides free housing for illegal settlers while disadvantaging lawful occupants (Paras 23-24, 74).

(C) Authority and Responsibility - The SRA is directed to maintain transparent records and effectively supervise the occupancy of rehab tenements (Paras 30-31, 57-60).

(D) Legal Procedures - The court establishes a firmer protocol for registration and operation of slum rehabilitation societies, orders the appointment of a court receiver, and sets deadlines for record maintenance (Paras 53-54, 82).

Facts of the case:
The petitions address widespread illegalities and unregistered societies in the slum rehabilitation scheme, with petitions submitted by multiple slum dwellers regarding transit rents and entitlement claims.

Findings of Court:
The lack of systematic identification and regulatory oversight has resulted in severe violations of statutory provisions and public trust. The handling of transit rents and rehab tenements necessitates urgent regulatory reform and reinforcement of legal authority to ensure equitable distribution.

Issues: The court focuses on illegal occupancies, the integrity of transit rent claims, and the effectiveness of slum rehabilitation policies in the face of increasing informal settlements.

Ratio Decidendi: The court underscores the need to reaffirm public property regulations and prevent potential encroachment legitimization through free housing distribution policies that undermine legal standards.

Result: A comprehensive list of occupants is to be submitted by SRA, and effective actions for eviction and regulation of tenement occupancy are mandated.

Table of Content
1. ongoing issues with slum rehabilitation (Para 1 , 30)
2. transit rent not fixed for eligible slum dwellers (Para 3 , 5 , 6)
3. no fundamental right to trespass or squatting (Para 20 , 23)
4. need for fundamental change in slum rehabilitation policies (Para 52 , 53 , 75)

JUDGMENT :

1. Something is rotten in the state of the SRA. This case for the first time gives us numbers. And these numbers are not only frightening but they point to what we can only describe as an ongoing fraud on statute at various levels, and widespread trafficking in free-of-cost slum rehabilitation tenements. Even with these numbers, there are many things still unknown and to be investigated.

2. To set the stage for what follows, we have reference to our order of 22nd March 2022, over a year ago. We took an unusual step in that order for we first released it on draft on that date and then in final form two days later on 24th March 2022 after all before us had an opportunity to make suggestions on the factual aspects. We reproduce the relevant portions of the order of 22nd March 2022 :

    CORAM: G.S. Patel & Madhav J. Jamdar, JJ.

    DATED: 22nd March 2022 (in draft)

    24th March 2022 (final)

    PC:

    (This order was dictated in Court on 22nd March 2022, and was expressly stated to be made available in draft for corrections and necessary changes. The present order is after discussion in court. A separate order dated 24th March 2022 has been dictated and uploaded, setting out these circumstances and further particulars.)

    1. This order is likely to be the first of several directions we believe are going to be necessary for the progress of the SR scheme on plots bearing CTS Nos. 5370 (pt.), 5371 (pt.), 5372 (pt.), 5373 (pt.), 5390 (pt.) 7643 (pt.) and 4207 (pt.) of Village Kolekalyan, Bandra-Kurla Complex, Mumbai H/E Ward. The project is vast: it covers 70,242.37 sq mts, equivalent to about 17.35 acres. There were 2,965 slum dwellers here. Of these, 2,622 were found eligible for rehabilitation. Of those, 996 have been rehabilitated already; 1,428 others await rehabilitation. About 1,336 slum dwellers are in transit camps, and 1,286 persons are on transit rent. About 3,896 tenements (including surplus tenements) are to be constructed.

    2. Before us, there are 111 slum dwellers as Petitioners. The original developer HDIL has been — for want of a better word — extinguished.

    (a) There are seven slum SRA societies. Most are unregistered. Almost all are non-functional.

    (b) SRA and the other authorities must now proceed to take action in accordance with law to have these societies registered.

    (c) We expect the CEO, SRA or the Deputy Registrar, Cooperative Societies, SRA to issue the necessary directions in this behalf. We do so because we fully anticipate requiring the Societies to be active and able to participate in the time ahead.

    (d) The CEO, SRA and the Deputy Registrar are at liberty to apply to this Court if any assistance is needed.

    (e) On the question of registration of the unregistered societies, all applications must, in the first instance, be made to this Court in these proceedings and not to any other court or tribunal. We do not want our orders in these matters to be met with conflicting orders from any other quarter.

    3. Budhpur Buildcon now comes in as a recognized co-developer. It is confronted with several question, including, importantly for our immediate purposes, its liability for transit rent arrears and other aspects relating to its being the successor co-developer for the entire SR project. This use of the word ‘co-developer’ should not be misconstrued. The earlier developer, HDIL, has fallen by the wayside. The expression ‘co-developer’ used for Budhpur Buildcon is only clarificatory, i.e. that it is not entirely an outsider developer coming in for the first time.

    4. One of the most significant complications in this SR scheme is that a fundamental facet, namely the transit rent payable to eligible slum dwellers, has never been fixed. We find this is utterly

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