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2024 Supreme(Bom) 1036

IN THE HIGH COURT OF BOMBAY
AMIT B. BORKAR, J.
Prithvi Infra Projects – Appellant
Versus
Apex Grievance Redressal Committee – Respondent
Writ Petition No. 2436 of 2024, Interim Application No. 6934 of 2024
Decided On : 10-05-2024

Advocates:
Advocate Appeared:
For the Appellants : Girish S. Godbole, Altaf Khan, Akash Bhagat
For the Respondents: Jagdish G. Aradwad, Vijay Patil, Yogesh Patil, Sanjeev Gorwadkar, Nitesh Acharya, Akash Mangalgi, Prasad Dhakephalkar, Mayur Khandeparkar, Vaibhav Charalwar, Ajay Vazirani, Raksha Thakkar, Karan Koya, Palak Salecha, Y.D. Patil
For the Intervenor : Karl Tamboly, Rupesh M. Geete, Shubhan Hundia

The Slum Rehabilitation Authority can terminate a developer's appointment for inordinate delays in scheme implementation, emphasizing the developer's obligation to act proactively.

Headnote:(A) Maharashtra Slums Areas (Improvement, Clearance and Redevelopment) Act, 1971 - Section 32 - Maharashtra Regional Town Planning Act, 1966 - Section 31(1) - Termination of developer's appointment - The petitioner challenged the termination of his appointment as a developer for a slum rehabilitation scheme, citing delays due to legal proceedings and the COVID-19 pandemic. The court found that the petitioner failed to take necessary steps for implementation and upheld the termination based on inordinate delay and loss of faith by slum dwellers. (Paras 1, 8, 22, 24)

(B) Developer's obligations - The developer must comply with timelines and procedures set by the Slum Rehabilitation Authority (SRA) and cannot rely on external factors without demonstrating proactive measures. (Paras 19, 22)

Facts of the case:
The petitioner was appointed as a developer for a slum rehabilitation scheme but faced eviction notices and delays. The SRA terminated his appointment due to inaction and loss of confidence from slum dwellers.

Findings of Court:
The court found the termination justified due to the petitioner's failure to implement the scheme and the loss of faith from the majority of slum dwellers.

Issues: The main issues included whether the petitioner was unjustly terminated and if the reasons for delay were valid.

Ratio Decidendi: The court ruled that the SRA has the authority to terminate a developer's appointment for inordinate delays and that the petitioner did not adequately justify his inaction.

Result: Writ petition dismissed.

Judgement Key Points

Based on the provided legal document, the key legal principles and considerations are as follows:

  1. Authority to Terminate Developer: The authority of the Slum Rehabilitation Authority (SRA) to terminate a developer’s appointment is supported when there is inordinate delay in scheme implementation. The SRA can exercise this power under the relevant legislation, specifically Section 13(2) of the Slums Act, in cases where the developer fails to adhere to approved timelines and procedures (!) .

  2. Grounds for Termination: The grounds for termination include significant delays attributable to the developer, lack of approval or action within reasonable timeframes, and loss of confidence from the slum dwellers. Even if delays are caused by external factors such as legal proceedings or the COVID-19 pandemic, the developer is expected to demonstrate proactive efforts. In this case, the court upheld termination due to inaction and inordinate delays by the developer (!) (!) .

  3. Developer’s Obligations and Timelines: The developer must comply with the procedural timelines and approvals stipulated by the SRA, including obtaining necessary permissions and approvals within prescribed periods. Circulars issued by the SRA provide guidelines for timelines, and failure to adhere to these can justify termination (!) (!) (!) .

  4. Bona Fide Impressions and Afterthoughts: The explanation that officials of the SRA were under a bona fide impression regarding legal restrictions was considered an afterthought, especially since it was raised late and not in the initial proceedings. The court found that the developer had ample opportunity to raise such defenses earlier and that reliance on such an impression does not absolve the developer from delays attributable to their own inaction (!) (!) .

  5. Interpretation of Court Orders: The specific order cited as a restraint only applied to open spaces designated for parks, gardens, and recreational zones. Since the property in question was designated as Rehabilitation and Resettlement (R.R.2.1), the order did not restrict the scheme’s implementation on this land. Therefore, the developer’s reliance on this order as a justification for delay was unfounded (!) (!) .

  6. Role of the SRA and Legal Remedies: When delays or inaction occur, the developer or other parties are expected to approach the appropriate authorities or courts to seek remedies or clarify legal positions. Inaction or failure to do so can be viewed unfavorably in proceedings justifying termination or other administrative actions (!) (!) .

  7. Application of Section 13(2) of the Slums Act: The power to change the developer in case of inordinate delay is supported by the law, provided the delay is unjustified and exceeds reasonable timelines. The courts have upheld the SRA’s authority to exercise this power when the developer fails to act within the prescribed period (!) .

In summary, the legal framework supports the SRA’s authority to terminate a developer’s appointment due to significant delays and non-compliance with procedural requirements, especially when the delays are not adequately justified or remedied within reasonable timeframes.


JUDGMENT :

AMIT B. BORKAR, J.

1. The petitioner, who is a developer seeks to impugn order dated 2 August 2023 passed by respondent No. 2 - Chief Executive Officer, Slum Rehabilitation Authority (“CEO, SRA” for short) exercising power under Section 32 of the Maharashtra Slums Areas (Improvement, Clearance and Redevelopment) Act, 1971 (“the Slums Act” for short) and order dated 13 February 2024 passed by the respondent No. 1 - Apex Grievance Redressal Committee (“AGRC” for short) in Application No. 190 of 2023.

2. Land bearing F.P. No. 663 of Town Planning Scheme No. III, Mahim Division at Kapad Bazar Road, Mahim (West), Mumbai 400 016 in G/North Ward area admeasuring 1961.55 sq. mtr. (“the said property” for short) belonging to the Municipal Corporation of Greater Mumbai (“MCGM” for short) is occupied by slum dwellers and censused in the records of the MCGM.

3. On 24 August 1960, the Government of Bombay vide Notification sanctioned a Town Planning Scheme demarcating a “garden” on the said property. On 8 May 2018, the State Government, by Notification, granted sanction under Section 31(1) of the Maharashtra Regional Town Planning Act, 1966 (“MRTP Act” for short) to the revised Development Plan of Greater Mumbai wherein the said property is designated as R.R.2.1 (Rehabilitation and Resettlement). On 30 October 2019, the slum dwellers on the said property came together. They formed Millet-E-Society by holding general body meetings and, by the majority, appointed the petitioner as its developer for implementing the Slum Scheme (DCR-33(10) Scheme). On 28 November 2019, the petitioner and Millat-E-Society filed a proposal with the Slum Rehabilitation Authority (“SRA” for short). On 4 December 2019, Millat-E-Society, through its officer bearers, executed a development agreement in favour of the petitioner for implementing the Slum Rehabilitation Scheme (“SR Scheme” for short). On 28 February 2020, the District Superintendent of Land Record - SRA granted NOC for the SR Scheme through the petitioner. On 11 March 2020, the Cooperative Department - SRA granted no objection to implementing the SR Scheme. On 11 March 2020, the Deputy Collector (Mumbai City) - SRA granted NOC to implement the SR Scheme. On 24 September 2020, SRA prepared the financial status of the developer (Annexure-III), holding that the petitioner has sufficient net worth for implementing the SR Scheme. On 7 April 2022, the petitioner paid scrutiny fees to the SRA. On 8 April 2022, SRA issued an acceptance letter in favour of the petitioner for implementing the SR Scheme on the said property.

4. On 13 September 2022, Assistant Commissioner, G/North Ward, issued eviction notices against slum dwellers under Section 89 of the MRTP Act for implementation of the plan of the garden as per the Town Planning Scheme of 1 September 1961. On 15 September 2022, the Engineering Department, SRA, issued a letter to the Tehsildar - 1 (Special Cell), SRA, for issuance of Annexure - II through the Competent Authority. On 19 September 2022, Tehsildar - 1 (Special Cell), SRA issued a letter to the Assistant Commissioner, G/North Ward (Competent Authority), for preparing a list of eligible slum dwellers (Annexure-II).

5. On 6 October 2022, the petitioner and the society filed a writ petition in this Court challenging notices dated 13 September 2022 issued under Section 89 of the MRTP Act. By order dated 12 October 2022, this Court recorded a statement of the MCGM that petitioners’ representation will be decided in accordance with law and thereafter, for a period of two weeks, protected slum dwellers from eviction. However, according to the petitioners, on 23 November 2022, the Assistant Commissioner, G/North Ward, without deciding representation of the petitioners, issued an eviction notice under Section 90 of the MRTP Act against the occupants. The petitioners again filed a writ petition in this Court challenging said notices. However, by order dated 20 December 2022, the petitioner was deleted

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