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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A. S. Gadkari, Kamal Khata, JJ.
Lakhani Housing Corporation Private Limited and ors. – Petitioners
Versus
State of Maharashtra Through Government Pleader and ors. – Respondents
Writ Petition No.2167 of 2024 With Interim Application (L) NO.25969 OF 2024
Decided On : 19-11-2024

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Dinyar Madon, Senior Advocate, a/w Adv. Mutahhar Khan, Adv. Sachi Lodha, Ms. Ferzana Behramkamdin, Adv. Kalyani Deshmukh, Adv. Aashi Sirohiwalla i/by FZB Associates
For the Respondent:Ms. Anupamaa Pawar, A.G.P., Dr. Birendra Saraf, Advocate General, a/w Adv. P.G. Lad, Adv. Aparna, Kalathil, Adv. Sayli Apte and Adv. Anjali Maskar Dr. Abhinav Chandrachud, a/w Adv. Idris Vohra and Adv. Sakshi Agarwal, i/by Adv. Bipin Joshi, Mr. M.S. Ahmed, a/w Mr. A.S. Khan

The court ruled that the petitioners lacked locus standi to challenge the government's redevelopment decision and failed to secure necessary consents from newly formed societies, thus dismissing the petition.

Headnote:(A) Development Control and Promotion Regulations for Greater Mumbai, 2034 - Regulation 33(9) - Writ of Certiorari - Petitioners challenge Cabinet Decision and Government Resolution appointing MHADA for redevelopment of land - Petitioners claim vested rights in land based on individual agreements with residents - Court finds no merit in Petitioners' claims as they failed to secure necessary consents from newly formed societies and presented misleading information. (Paras 1-26)

(B) Locus Standi - Petitioners lack locus to challenge Government actions as they do not represent the majority of residents and have not obtained necessary resolutions from the societies formed post-agreement. (Paras 8.1, 9.4)

(C) Clean Hands Doctrine - Petitioners failed to approach the Court with clean hands, presenting partial truths and misleading claims regarding consents and financial disbursements. (Paras 22-25)

Facts of the case:
The Petitioners sought to set aside a Cabinet Decision and Government Resolution for the redevelopment of land in Sion Koliwada, Mumbai, claiming vested rights based on agreements with residents. The land was previously occupied by dilapidated buildings housing refugees, which were demolished by BMC.

Findings of Court:
The Court found that the Petitioners did not have the necessary consents from the newly formed societies and that the Government acted in the public interest by appointing MHADA for redevelopment.

Issues: The main issues included the validity of the Petitioners' claims to the land, their locus standi, and whether they approached the Court with clean hands.

Ratio Decidendi: The Court ruled that the Petitioners lacked locus to challenge the Government's actions and failed to provide sufficient evidence to support their claims, emphasizing the need for proper resolutions from the societies.

Result: Petition dismissed.

JUDGMENT :

Kamal Khata, J.

1. In the heart of Mumbai, in Sion Koliwada, lies a sizeable plot of land by Mumbai standards, measuring 45,308.58 square meters (approximately 11.20 acres), commonly known as Guru Teg Bahadur Nagar ("the subject land"). This land once held 25 buildings that housed around 1,200 occupants, originally refugees from Pakistan. Due to the dilapidated condition of these buildings, the BMC demolished them between 2019 and 2022. Consequently, the land has remained vacant for over five years.

2. The residents sought Government intervention for the redevelopment of the property, which led to a Cabinet Decision and the issuance of a Government Resolution to that effect. MHADA was appointed as the planning authority responsible for overseeing the redevelopment of the subject land. Subsequently, MHADA issued an e-Tender to select a Construction and Development Agency (C & D A) for the redevelopment project.

3. Through this Petition, the Petitioners, Lakhani Housing Developers Private Limited ("Lakhani"), who are developers claiming vested rights in the subject land, seek a Writ of Certiorari to set aside the Cabinet Decision, the Government Resolution, and the e-Tender issued by MHADA for the redevelopment of the subject land.

Brief facts:

4. By a Cabinet Decision dated 14th February 2024, the State of Maharashtra (Respondent No.1) appointed MHADA as the special planning authority to redevelop the 25 buildings at the Guru Teg Bahadur Nagar Cooperative Society in Sion Koliwada, Mumbai. The original decision, in Marathi, is annexed at page 56, with an English translation provided at page 62. The relevant portion of the decision is available in Marathi on page 60 and is extracted below:

5. A Government Resolution (GR) was subsequently issued on 23rd February 2024, recording this decision. The original GR, in Marathi, is annexed at page 75, with an English translation on page 80. Since it is under challenge, the relevant portion from page 76 in Marathi is extracted below:

6. The GR specifies that MHADA will implement the redevelopment project under Regulation 33(9) of the Development Control and Promotion Regulations for Greater Mumbai, 2034 (DCPR), by appointing a Construction and Development Agency (C & D A) through a tender process as provided in the DCPR. The GR requires at least 51% of each building's residents, or 60% of the total tenants/residents across all buildings, to consent to the redevelopment. Additionally, it mandates that the C & D A must provide MHADA with proof of the right to develop at least 70% of the area, along with irrevocable consents from residents agreeing to MHADA's redevelopment plans, before the project can proceed.

6.1. The GR further stipulates that the tender documents must specify, as a minimum requirement, that the selected C & D A must build and provide rehabilitation units free of charge, offer the highest housing stock/premium to MHADA, and meet all financial and physical conditions specified in the tender.

7. Mr. Madon learned Senior Counsel for the Petitioners submitted that initially the land belonged to the President of India. Punjabi and Sindhi refugees who proposed to settle in Mumbai, after the partition, were sold 1200 residential tenements in these 25 buildings. Sanad’s were executed in favour of some of the purchasers between the period 1954 and 1987. The conveyances were executed by the President of India in favour of the purchasers in accordance with the provisions of Rules 42 and 33 framed under Displaced Persons (Compensation and Rehabilitation) Act, 1954. These Sanad’s/Conveyances clearly indicate that the transfer was absolute and thus the lands were freehold. No rights of any nature whatsoever were reserved in favour of the President of India, except the right to remove mines and minerals from the lands on which the buildings stood. The residents subsequently themselves formed the Cooperative Housing Societies.

7.1. It is undisputed that the buildings, which were approxima

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