Public landowner has preferential redevelopment rights on reserved slum land; conditional NOC cancellation valid for developer's failure to provide compliant plans for public amenities, subordinating encroachers' and developer's claims.

JUDGMENT :

AARTI SATHE, J.

1. This Petition under Article 226 of the Constitution of India has been filed praying for the following substantive reliefs:-

“(a) To admit the present Writ Petition and issue Rule.

(b) That by a writ of mandamus, writ in the nature of mandamus or any other writ, order and direction, the Order dated 10.1.2024 passed by the Respondent No.4, copy of which is at EXHIBIT 'O' to this petition may kindly be quashed and set aside and by the same order the Respondent Nos. 1, 2, 4 and 5 may kindly be directed to sanction the building proposal submitted by the Petitioners on 08.1.2024 and permit the Petitioners to commence and complete the construction of the building in accordance with that proposal.

(c) By a suitable order interim effect, operation and implementation of the Order dated 10.1.2024 copy of which is at EXHIBIT 'Q' to the petition may be kindly stayed during pendency of this petition.”

2. This is the second round of litigation before this Court challenging the order dated 10^th January 2024 passed by Respondent No. 4-The Additional Municipal Commissioner, Mumbai Municipal Corporation cancelling the No Objection Certificate (NOC) dated 31^st December 2021 given to Respondent No.3-Slum Rehabilitation Authority (SRA) by the Estate Department of the MCGM/BMC. On account of the cancellation of the NOC, the Petitioners are aggrieved, inasmuch as it is their grievance that they are unable to commence and complete the construction of the building in accordance with the proposal submitted for the redevelopment of the building. As noted by us, this Petition is being re-heard in view of the order dated 28^th November 2025 passed by the Supreme Court in Special Leave Petition (C) No. 31485 of 2025 which challenged the order dated 20^th June 2025 passed by this Court by which the present Writ Petition came to be rejected on the ground of availability of an alternate remedy. The Supreme Court, by the said order dated 28^th November 2025 has modified the order dated 20^th June 2025 passed by this Court and in pursuance thereto, this matter has been taken up for hearing. The relevant paragraphs of the order dated 28^th November 2025 passed by the Supreme Court are reproduced below:-

“3. Our order dated 31.10.2025 reads thus:-

“1. Delay condoned.

2. Exemption Application is allowed.

3. Heard Mr. Shyam Divan, the learned Senior counsel appearing for the petitioners.

4. Prima facie, it appears from the materials on record that the petitioners – herein are Developers. They entered into an agreement for redevelopment of a slum. It is not in dispute that the Municipal Corporation issued `No Objection Certificate’ in favour of the petitioners – herein. Thereafter, a letter of intent was also issued. Later, the Corporation decided to withdraw the `NOC’ which was issued in favour of the petitioners – herein. This led to filing of a Writ Petition No.26148/2023 by the petitioners before the High Court.

5. The High Court disposed of the Writ Petition, referred to above, filed by the petitioners – herein vide order dated 8-11-2023. The order reads thus:-

“1. Mr Chinoy has instructions to state that the impugned order at page 30A stands withdrawn. It is of 6th September 2023. The Municipal Corporation of Greater Mumbai ("MCGM") will issue a fresh show cause notice to the Petitioners and will afford the Petitioners a hearing and