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2022 Supreme(Bom) 2101

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S.Kulkarni, J.
Yash Developers – Appellant
Versus
Harihar Krupa Co-operative Housing Society Ltd. – Respondent
Interim Application No. 4297 of 2022
Decided On : 14-10-2022

Advocates Appeared:
Birendra Saraf, Advocate, Yadunath Chaudhari, Advocate, Kevin Pereira, Advocate, Kushal Amin, Advocate, Makarand Raut, Advocate, Chinmay Acharya, Advocate, Pravin Samdhani, Advocate, Sharmila Deshmukh, Advocate, Anchita Nair, Advocate, Jaya Bagwe, Advocate, Jagdish G.Aradwad, Advocate, Vijay D.Patil, Advocate, Hassan Khan, Advocate, Nikhil Vijay Adkine, Advocate, Viraj Jadhav, Advocate

Headnote:(A) Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 - Section 13(2) - Removal of developer for inordinate delay in implementation of slum rehabilitation scheme - Petitioner failed to commence construction for 18 years - Petitioner's claims of delays due to rival society litigation and other reasons found unconvincing - AGRC determined that delays were attributable to the petitioner, justifying removal. (Paras 2, 12, 72, 74, 86)

(B) Slum Dweller Rights - Right to shelter as part of right to livelihood under Article 21 of the Constitution - Developers under slum rehabilitation schemes must act with diligence to fulfill obligations to the slum dwellers. (Paras 38, 89)

(C) Jurisdictional Powers - SRA mandated to ensure timely redevelopment of slum schemes and protection of slum dweller rights. (Paras 66, 72)

Table of Content
1. non-fulfillment of construction timelines. (Para 2 , 3 , 4)
2. development agreement and ownership structure. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
3. obstacles in obtaining approvals and evictions. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
4. process of shifting slum dwellers. (Para 21 , 22 , 23 , 24)
5. petitioner's financial obligations and disputes. (Para 25 , 26)
6. arguments from both parties regarding delay and financial capacity. (Para 35 , 36)
7. court's role in reviewing administrative agency decisions. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43)
8. evaluation of delay justification provided by the developer. (Para 44 , 46 , 47 , 48 , 49 , 50 , 51)
9. developer's financial and technical capacity. (Para 52 , 53 , 54 , 55)
10. issues surrounding third-party financing. (Para 56 , 57 , 58 , 59)
11. obligations of the developer towards timelines. (Para 60 , 61 , 62 , 63)
12. consequences of inordinate delays. (Para 64 , 65 , 66 , 67)
13. need for reform in selecting developers. (Para 68 , 69 , 70)
14. developers’ need for timely and effective action. (Para 71 , 72)
15. repercussions of the agrc's findings. (Para 73 , 74 , 75 , 76)
16. perseverance of complaints against the developer. (Para 77 , 78 , 79 , 80 , 81 , 82)
17. judicial standards for overturning agrc findings. (Para 83 , 84 , 85 , 86)
18. consequences of breaching the development agreement. (Para 87 , 88)
19. historical precedents for slum rehabilitation schemes. (Para 89 , 90 , 91 , 92)
20. petitioner’s claims for damages due to agrc's ruling. (Para 93 , 94 , 95)
21. conclusion of the court against the petitioner's claims. (Para 96 , 97 , 98 , 99 , 100)

JUDGMENT

G.S.KULKARNI, J. - The judgment has been divided into the following Sec. to facilitate analysis:- Sec. HEADING PARA NOS.

    A Prelude 2 B Facts 5 C Submissions on 35 behalf of the petitioner. D Submissions behalf 36 of the respondent No. 1 E Analysis and 37 Conclusion A. Prelude :

2. A developer being removed on the non-fulfillment of the basic requirement to commence construction of a slum rehabilitation building for a long period of 18 years, whether is not fatal to the object and intention of a statutory intent behind a Slum Rehabilitation Scheme, is an issue which falls for consideration of the Court in the present proceedings. Another crucial question would be as to whether the right to shelter which is part of the slum dwellers' right to livelihood guaranteed under Article 21 of the Constitution, can be continued to be nullified by such actions of unconscionable delay on the part of the developer, in not commencing construction of the slum project even by an inch more particularly when the nature of such work awarded to a developer for him is purely a commercial venture, for profit.

3. The petitioner, who was appointed in the year 2003 by respondent No. 1-Slum Society, as a 'developer' to undertake its Slum Rehabilitation Scheme, under which not a single brick was laid by the petitioner for about 18 years, resulting in the petitioner's removal by the impugned order dtd. 4/8/2021 passed by the Apex Grievance Redressal Committee (for short, the AGRC'), in exercise of powers under s0ection 13(2) of The Maharashtra Slum Areas (Improvement, Clearance and Re-development) Act, 1971 (for short 'the Slums Act'), is before the Court in the present proceedings under Article 226 of the Constitution of India, assailing such order, passed by of the AGRC.

4. By the impugned order dtd. 4/8/2021 passed by the Apex Grievance Redressal Committee (AGRC), an appeal filed by respondent No. 1-society against the decision of the Chief Execution Officer of the Slum Rehabilitation Authority declining to remove the petitioner under sec. 13(2) of the Slums Act, has been allowed by the following order :

    (i) Appointment of Respondent No. 2 M/s. Yash Developers in respect of S.R. Scheme on plot of land bearing CTS No. 515 (Pt.), 515B(Pt.) and 509 of Village Kanheri, Taluka Borivali corresponding to F.P. No. 14-AB(Pt) of TPS-II, Bor

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