High Court On Its Own Motion vs State Of Maharashtra Through Government Pleader

Digitally
signed by
PRASHANT
VILAS
RANE
Date:
2026.05.08
17:23:50
+0530
2026:BHC-OS:11958-DB
PRASHANT
VILAS
RANE
SMWP1_2024.DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
SUO MOTU IN WRIT PETITION NO. 1 OF 2024
High Court On Its Own Motion ...Petitioner
Versus
State Of Maharashtra Through Government Pleader ...Respondent
WITH
INTERIM APPLICATION NO.2407 OF 2025
WITH
INTERIM APPLICATION (L) NO. 28516 OF 2024
WITH
INTERIM APPLICATION NO.3917 OF 2024
WITH
INTERIM APPLICATION (L) NO. 30515 OF 2024
WITH
INTERIM APPLICATION NO. 3024 OF 2024
WITH
INTERIM APPLICATION (L) NO. 28846 OF 2024
WITH
INTERIM APPLICATION (L) NO. 28762 OF 2024
WITH
INTERIM APPLICATION (L) NO. 25664 OF 2024
WITH
INTERIM APPLICATION (L) NO. 25848 OF 2024
IN
SUO MOTU IN WRIT PETITION NO. 1 OF 2024
WITH
PUBLIC INTEREST LITIGATION NO. 83 OF 2019
Vijendra Kumar Rai ...Petitioner
Versus
State Of Maharashtra And 22 Others ...Respondent
WITH
PUBLIC INTEREST LITIGATION NO. 109 OF 2019
Vijendra Kumar Rai ...Petitioner
Versus
State Of Maharashtra And 21 Ors ...Respondent
WITH
CONTEMPT PETITION (L) NO.5058 OF 2024
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Navalben Kantilal Karia ...Petitioner
Versus
State of Maharashtra Thr. Government Pleader ...Respondent
WITH
CONTEMPT PETITION (L) NO.3760 OF 2023
Vijendra Kumar Rai ...Petitioner
Versus
Chief Executive Officer, SRA ...Respondent
WITH
CONTEMPT PETITION (L) NO.29681 OF 2023
Sadiqa Ali Abbas ...Petitioner
Versus
The State of Maharashtra Thr. Government Pleader ...Respondent
WITH
CONTEMPT PETITION (L) NO.5661 OF 2024
Mohammad Sharif Gulam Rasool Shaikh ...Petitioner
Versus
The State of Maharashtra and Ors. ...Respondents
WITH
INTERIM APPLICATION NO. 3179 OF 2023
Haseena Istiyak Ansari ...Applicant
Versus
Vijendra Kumar Rai and Ors. ...Respondents
WITH
SUO MOTO PIL NO. 2 OF 2023
High Court On Its Own Motion ...Petitioner
Versus
State Of Maharashtra ...Respondent
WITH
WRIT PETITION NO. 1292 OF 2018
Vijendra Kumar Rai ...Petitioner
Versus
State Of Maharashtra And 17 Ors. ...Respondent
WITH
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WRIT PETITION (ST) NO. 26454 OF 2023
A. B. Builders And Developers ...Petitioner
Versus
State Of Maharashtra ...Respondent
WITH
WRIT PETITION NO. 3571 OF 2023
Confederation Of Real Estate Developers
Association Of India ...Petitioner
Versus
The State Of Maharashtra Through The
Principal Secretary ...Respondent
WITH
WRIT PETITION NO. 115 OF 2024
WITH
INTERIM APPLICATION (L) NO.7753 OF 2024
Royal Netra Constructions Private Limited ...Petitioner
Versus
State Of Maharashtra Through The Principal Secretary ...Respondent
__________
Mr. Darius Khambata, Sr. Adv., Mr. Sharan Jagtiani, Sr. Adv., Ms. Naira
Jejeebhoy Amicus Curiae, alongwith Mr. Priyank Kapadia, Mr.Chanan Parwani,
Mr. Tushar Hathiramani, Mr. Tanmay Pawar, Shreenandini Mukhopadhyay, Mr.
Muttahar Khan, Ms. Shraddha Achliya, Ms. Avani Divan, Ms. Sankalpita Mullick
Mr. Samit Shukla, Mr. Siddharth Shah, Ms. Masira Shaikh - Nodal Officers.
Dr. Birendra Saraf, Sr. Adv a/w Mr. Vaibahav Charalwar for SRA in
SMWP/1/2024.
Mr. Shiraz Rustomjee, Sr. Adv. a/w Mr. Jay Chabria, Mr. Pratik Pai, Ms. Sheetal
Shah, Ms. Shreya Parkh i/b M/s Mehta & Girdharlal for Applicant in
IAL/28516/2024.
Mr. Navroz Seervai, Sr. Adv a/w Mr. Kunal Mehta, Mr. Robin Fernandes, Mr.
Sukrit Parashar and Mr. Shiroy Pavri, Ms. Lillyan Thangkhiew, Mr. Aditya
Shinde, Mr. Surja Kale i/b M/s. Vesta Legal for Applicant in IAL/28762/2024.
Mr. Mayur Khandeparkar a/w Mrs. Jasmine Kachalia, Mr. Aryan Srivastava, Mr.
Viren Mandhle, Mr. Sahil Singh, Ms. Dhun Vinod Santosh i/b Wadia Ghandy &
Co. for NAREDCO WEST FOUNDATION.
Ms. Gulnar Mistry a/w Mr. Akash Rebello, Mr. Prateek Pai, Mr. Peterasp Sasuri,
Ms. Prachi Pandya i/b. Corporate Attorneys for Applicant in IAL/28730/2024.
Ms. Gayatri Singh, Sr. Adv. a/w Ms. Sanjot Shirshath for Slum Dwellers.
Dr. Birendra Saraf, A. G. with Smt. Jyoti Chavan, Addl. G. P., Mr. Vaibhav
Charalwar ‘B’ Panel Counsel, Mr. Vikrant Parshurami, AGP for State in
SMWP/1/2024.
Smt. Vrushali Kabre, AGP for State in PIL/109/2019, CONPPL/29681/2023,
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CONPPL/5661/2024, PIL/83/2019.
Mr. Prashant Kamble, AGP for State in CONPPL/5058/2024.
Mr. Atul Vanarse, AGP for State in SMP/2/2023, WP/1292/2018 and
WPL/26454/2023.
Smt. Uma Palsuledesai, AGP for State in WP/3571/2023.
Mr. Dipesh Siroya, AGP for State in WP/115/2024 with IAL/7753/2024.
Mr. Joel Carlos a/w Ms. Jyoti Mhatre i/b Komal Punjabi for BMC.
Mr. Jagdish G. Aradwad (Reddy) for R. No. 13 To 16 in PIL/83/2019, for R. No.
2 & 3 in WPL/26454/2023 and WP/115/2024, for R. No. 7 to 10 in
WP/1292/2018.
Mr. P. G. Lad for MHADA in SMWP/1/2024.
Mr. Vijay D. Patil a/w Ms. Ruchi Patil i/b Mr. Abhijit Patil for R. No. 2 SRA in
CONPPL/5058/2024, R. No. 2 To 5 SRA in CONPPL/5661/2024, for R. No. 1
& 2 SRA in CONPPL/3760/2023 and for R. No. 6/SRA in PIL/109/2019 and
for SRA in CONPPL/29681/2023.
Dr. Birendra Saraf, A. G. a/w Mr. Jagdish G. Aradwad ( Reddy), Mr. Vaibhav
Charalwar for R. No. 2 & 3 in WP/3571/2023.
Mr. Y. R. Mishra a/w Mr. D. P. Singh, Mr. Sachidanand T. Singh for R. No. 22 U.
O. I. in PIL/109/2019.
Mr. Vinay Nair i/b Arun Panickar for R. No. 4 in WP/115/2024.
Mr. Haaris Reshamwala i/b Diamond & Co. for R. No. 9 To 16 in PIL/109/2019
Mr. Sandeep Dhangar a/w Ms. Kinjal Kakkad, Ms. Kinjal Upadhyaya i/b Jayesh
R. Vyas for R. No. 17.
Mr. Ative Patel a/w Viraj Raiyani i/b AVP Partners for R. No. 21.
Mr. Viraj Parikh, Mr. Samit Shukla, Mr. Siddharth Shah, Masira Shaikh i/b Tri
Legal for MCHI –CREDAI.
Mr. Kirti Munshi a/w Mayur Thorat and Ankit Tripathi i/b Jariwala Associates
for Skycon Infrasturcture, Landowners.
Mr. Mihir Desai, Sr. Adv. a/w Rishika Agarwal for Slum Dwellers.
Mr. Rajiv Kumar, Sr. Adv. a/w Ms. Sheetal Kumar, Mr. Jimish Shah, Mr. Rahil
Jhaveri, Mr. Kushan Kumar and Ms. Nirvi Shah for N D Bhuta Charities Trust,
Landowner.
__________
CORAM : G. S. KULKARNI &
ADVAIT M. SETHNA, JJ.
DATE : 8 MAY, 2026
__________
JUDGMENT (PER G. S. KULKARNI, J.)
1. The judgment has been divided into the following sections to facilitate
analysis:-
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A. Prologue
2. In several decisions of this Court, serious concerns were expressed on
there being something drastically amiss in the implementation of the
Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act,
1971 (for short ‘the Slum Act’), and more particularly considering the chaotic
situation brought about by an avalanche of disputes reaching the Courts being
generated under the Slum Act. The Courts were not mute spectators, as telling
observations were made in several decisions of this Court and the Supreme
Court. These concerns stand succinctly captured in the recent decision of the
Supreme Court in Yash Developers Vs. Harihar Krupa Co-Operative Housing
1
Society Ltd. and Ors. . Their Lordships eminently felt that it was high time that
there is a “performance audit” of the slum legislation expressing serious concerns
on the implementation of the Slum Act. The Supreme Court, hence, intended
that this Court, after hearing the stakeholders, make recommendations to the
State Government on issues as underscored, and in terms of its observations
made in paragraphs 59 to 66. Such observations read thus:
“59. The Executive branch has a constitutional duty to ensure that the
purpose and object of a statute is accomplished while implementing it. It
has the additional duty to closely monitor the working of a statute and must
have a continuous and a real time assessment of the impact that the statute
is having. As stated above, reviewing and assessing the implementation of a
statute is an integral part of Rule of Law. The purpose of such review is to
ensure that a law is working out in practice as it was intended. If not, to
understand the reason and address it quickly . It is in this perspective that
this Court has, in a number of cases, directed the Executive to carry a
performance/assessment audit of a statute or has suggested amendments to
the provisions of a particular enactment so as to remove perceived
infirmities in its working.
1 (2024) 9 SCC 606
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60. Constitutional courts are fully justified in giving such directions as
they are in a unique position of perceiving the working of a statute while
exercising judicial review, during which they could identify the fault-lines in
the implementation of a statute. This extraordinary capacity to assess the
working of a statute is available to the judicial institution because of its
unique position where : ( i ) disputes, based on the statutory provisions
unfold before it, ( ii ) claims of rights or allegations of dereliction of duties are
raised with varied, and sometimes, contradictory interpretations of the same
text of the statute, ( iii ) submissions of lawyers opens up a debate and as
officers of the Court experienced lawyers would lay bare the fault-lines in
the statutory scheme, ( iv ) many a times court silently witnesses the play of
statutory power relegating the deserving to the backseat, and the
undeserving taking away all the benefits.
61. Laws that are made by Parliament or the Legislative Assemblies
create rights, entitlements, duties or liabilities. Application of such
empowerments or disabilities gives rise to competing claims or conflicting
interests. For resolution of these disputes, constitutional courts provide
public law remedies [ Judicial control of administrative action in our
country, the effective and the most prolific, has evolved from its classical
scrutiny of ultra vires exercise of power, to a whole set of procedural and
substantive principles, such as: legality, procedural propriety, reasonableness,
legitimate expectation, proportionality, transparency, legal certainty,
accountability, level playing field, consultation or participation, etc. These
principles are now well entrenched in our judicial review processes and are
part of our administrative law. In fact, bulk of judicial review proceedings
initiated before the High Courts examine if the power exercised is within its
bounds.] where claims and contestations are decided by the High Courts on
a case-by-case basis. Judicial review is generally episodic, and is intended to
resolve the lis on a case-to-case basis. Though cases are decided on their
own merit and the lis disposed of, what is left behind is the institutional
memory of the Court about the working of the statute and its interpretation
preserved as precedents. Over a period of time, a critical mass of
adjudicatory determinations on the working of the statute is built. This
critical mass, coupled with the experiences gained by the Judges and the
Court on the working of the statute, is of immense value for auditing the
working of the legislation. It enables the court to assess whether the purpose
and object of the Act is being achieved or not.
62. The traditional perception of the constitutional role of writ courts
was confined to judicial review of executive and legislative action. In that
role, the courts were to decide the vires of the legislative and executive
actions based on constitutional parameters. Not only have the tools of
judicial review been reinvented (the rise of the proportionality and
arbitrariness doctrines) but also the breadth of the judicial power has
substantially expanded to areas that were hitherto forbidden (review of
policy decisions, constitutional amendments and continuing mandamus
being prime examples). However, even this expansive reading of judicial
review does not capture the essence of the judicial branch in its entirety.
63. There is yet another role which the judiciary can and ought to
perform—that of facilitator of access to justice and effective functioning of
constitutional bodies. In this role, the judiciary does not review executive
and legislative actions, but only nudges and provides impetus to systemic
reforms. The statute in question is one which was intended to benefit the
marginalised and the impoverished. It is not easy for the intended
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beneficiaries of this legislation to carry their voice to legislative branch for
effective reform. The exercise that this Court intends to direct presently is
aimed at facilitating their access to legislative and executive reform, which
this Court believes is an essential component of constitutional justice. That
all justice is to be achieved only through courtroom debates is too myopic
an understanding of constitutional justice. The facilitative role is not just
inspired from the institutional role that the judiciary perceives for itself, but
is also a directive of many of the fundamental rights in Part III and the
cherished preambular vision of justice—social, economic and political.
64. A peculiar feature of how our legislative system works is that an
overwhelming majority of legislations are introduced and carried through
by the Government, with very few private member bills being introduced
and debated. In such circumstances, the judicial role does encompass, in this
Court's understanding, the power, nay the duty to direct the executive
branch to review the working of statutes and audit the statutory impact. It is
not possible to exhaustively enlist the circumstances and standards that will
trigger such a judicial direction. One can only state that this direction must
be predicated on a finding that the statute has through demonstrable
judicial data or other cogent material failed to ameliorate the conditions of
the beneficiaries. The courts will also do well, to arrive the very least, at a
prima facie finding that much statutory schemes and procedures are
gridlocked in bureaucratic or judicial quagmires that impede or delay
statutory objectives. This facilitative role the judiciary compels audit of the
legislation, promote debate and discussion but does not and cannot compel
legislative reforms.
65. In light of the foregoing, considering that the Act is a State
legislation, implementation of which lies with the State of Maharashtra, and
till date no comprehensive statutory audit has been undertaken, we request
the learned Chief Justice of the Bombay High Court to constitute a Bench
to initiate suo motu proceedings for reviewing the working of the statute to
identify the cause of the problems indicated in para 56. The Bench
concerned will hear the Government, the statutory authorities, the
necessary stakeholders including intended beneficiaries and perhaps take
the assistance of some senior members of the Bar specialising in this area as
Amici Curiae. We leave it to the High Court to devise such methods as it
deems fit and appropriate.
66. Having examined the matter, the Bench may consider directing the
Government to constitute a committee for performance audit of the Act.
The court's jurisdiction extends only to that extent, and no further. The law-
making, including amendments, is the exclusive domain of the legislature.”
(emphasis supplied)
3. In pursuance of such orders of the Supreme Court in Yash Developers
(supra), Hon’ble the Chief Justice has constituted this Bench to address the issue
on the performance audit of the Slum Act, and more particularly in terms of the
issues as set out in paragraph 56 of the said decision (supra).
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4. The task, thus, assigned to this Bench is to identify the multitude of
challenges and the problems in relation to the redevelopment of slums and more
particularly the eight issues as flagged by the Supreme Court in paragraph 56 of
the said judgment, so as to achieve the object of the legislation, which is to
completely eradicate the slums by providing decent living to the slum dwellers
and to achieve a vision of slum free cities.
5. It needs to be observed that the decision of the Supreme Court in Yash
Developers (supra) was rendered in the proceedings which were carried to the
Supreme Court, from the orders passed by this Court in which this Court had
made significant observations in regard to the infirmities in the implementation
of the Slum Act derailing the object to be achieved by the legislation.
6. After the constitution of this Bench, we had requested Mr. Darius
Khambata, Mr. Sharan Jagtiani, learned Senior Counsel and Ms. Naira
Jeejeebhoy, learned Counsel, to assist the Court as Amici who have painstakingly
assisted the Court on several issues which arise for consideration. We have also
heard different stakeholders who are represented by learned Counsel Mr. Sukrit
Parashar, Ms. Yashi Bhatt, Ms. Gulnar Mistry, Mr. Akash Rebello, Ms. Janvi Dutt,
Mr. Joel Carlos, Mr. Jagdish G. Aradwad (Reddy), Mr. Arun Panickar, Ms. Sayali
Apte with Ms. Anjali Maskar, Mr. Arjun Srivastava, Mr. Nitesh Acharya, Mr.
Sandeep Dhangar, Mr. Ativ Patel and Mr. Y. R. Mishra.
7. The official respondents were represented with the lead submissions of Dr.
Birendra Saraf, learned Advocate General with Smt. Jyoti Chavan, Addl.
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Government Pleader, Mr. Mohit Jadhav, Addl. GP, Mr. Vaibhav Charalwar, ‘B’
Panel Counsel, Mr. Vikrant Parshurami, AGP, Ms. Vrushali Kabre, AGP, Mr.
Prashant Kamble, AGP, Mr. Atul Vanarse, Mr. Dipesh Siroya, AGP for State.
B. Conspectus of the concerns expressed by the Courts on the Slum Act:
8. About four decades and six years back in State of Maharashtra v. Shri
2
Mahadeo Pandharinath Dhole , the Division Bench of this Court made
important observations concerning the purpose and functioning of the Slum Act.
It was observed that in the years 1971 and 1973 Slum Acts were enacted as
“intermediary remedial measures”, to address widespread slum conditions in
Maharashtra. The other observations being : The objective of the legislation was
to improve, regulate, clear, and redevelop slum areas, not to perpetuate them.
Basic civic amenities provided to slum dwellers under the Acts are temporary
arrangements and not permanent entitlements; they are meant only until slums
are removed, and residents are shifted into proper housing. The Acts provide ad-
hoc solutions necessitated by uncontrolled urban growth, making the complete
absence of slums unrealistic in the immediate future. Without such legislation,
slums could become a danger to public health, safety, and convenience, and a
nuisance to surrounding areas. The State, as a welfare State, is obligated to
regulate and control slums rather than accept them as permanent fixtures. The
1971 and 1973 Acts are consistent with and advance the objectives of the Town
Planning Act, 1966, by facilitating orderly development and redevelopment.
Achieving the goals of the Town Planning Act would be extremely difficult
2 AIR 1980 Bom 348
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without the Slum Acts. These Acts must be read harmoniously as complementary
modern solutions to urban problems. Though one may hope for a future where
slum-related laws become unnecessary, that stage has not yet arrived. Authorities
are therefore bound to act strictly in accordance with the provisions of these Acts
until slums are fully eradicated. While considering the challenge to an order
passed by the Tribunal constituted under the Slum Act on the issue of declaration
of an area as a slum, the Division Bench made the following observations :-
“22. The two enactments viz., the 1971 and the 1973 Acts, are meant to
provide for remedies of a nature basically intermediary in character. Taking
cognizance of the large slum areas in certain parts of the State, the State
Legislature thought it fit to pass legislation to make better provisions for the
improvement and clearance of those areas as also for their re-development.
The object of these two enactments is not to perpetuate slums but to
regulate the same, clear the same and re-develop the property in question.
The object also is to provide to the slum dwellers at large certain basic
necessities such as water, sanitary arrangements, light etc. and these basic
amenities are to be provided to the slum dwellers not as a matter of any
permanent feature but indicated in the preamble to the 1973 Act:
"x x x until such time as these Slums are removed and the persons settled
and housed in proper buildings.
23. The 1971 and the 1973 Acts are thus, to our mind, ad-hoc solutions
to ad-hoc problems which problems have, to an extent, become inherent in
the very growth, development and progress of modern towns and cities in
the State. A dream situation would, of course, be total absence of any slums.
But there seems to be a long way to go to realize the same. In the
meanwhile, slums have arisen and do crop up. Necessity knows no law. But
to accept these slums as they are would be the very negation of the duties of
a modern welfare State. Since overnight clearance of slums appears to be a
problem beyond the immediate reach of the State the State Legislature has
rightly chosen the next rest step viz., to regulate and control the slums and
to see to it that these do not become a source of danger to the health, safety
and convenience not only of the slum dwellers but also the surrounding
areas and to also see to it that these do not become a source of nuisance to
the public. These are the very specific objects embodied in the preamble to
the 1973 Act and for the fulfillment of which the said Act has been enacted.
24. The object of Town Planning Act is to make provision for planning
the development and use of land, to make better provision for the
preparation of development plan, to provide for the creation of new towns
etc. The objects of the 1971 and the 1973 Acts is not, in our view,
inconsistent with the object of the Town Planning Act, 1966. Indeed, the
objects of the 1971 and the 1973 Acts are objects on steps in aid of the
fulfillment of the objects and aims behind the Town Planning Act, 1966.
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The fulfillment of the objects and aims of the Town Planning Act, 1966,
would become extremely difficult, if not well highly impossible, if laws such
as the 1971 and the 1973 Acts are not passed and implemented. Absence of
laws such as the 1971 and the 1973 Acts can itself result in frustrating or
defeating at least some of the objects of the Town Planning Act, 1966.
These three enactments have, therefore, to be read harmoniously and have
to be construed accordingly. They are modern solutions and remedies to the
ever-emerging new problems of modern times. Though one may hope for
the times when Acts such as the Slum Areas Act, 1971, and the Slum
Improvement Board Act, 1973, outlive their existence and are no longer
round necessary for the purposes of fulfillment of the modern welfare
activities of the State and though one may also hope for the times when
slum areas would be a thing of the past, still till at least that stage arrives and
is reached the community at large and citizens such as respondent No. 1
herein will have to accept and abide by the provisions of these laws.”
(“emphasis supplied”)
9. A Full Bench of this Court, in Sara Harry D’Mello Vs. State of
3
Maharashtra and Ors , in the context of acquisition of land under Section 14(1)
of the Slum Act, held that the acquisition of slum land under the Slum Act is not
merely for the benefit of a larger number of persons residing in sub-human
conditions in slums, but also to ensure that the improvement of their living
conditions leads to an overall improvement in the urban economy, which is very
much dependent on the labour force being supplied by the occupants of the
hutments in the slums.
4
10. In Indian Cork Mills Private Limited Vs. State of Maharashtra , the Court
analyzed the legislative intent of the Slum Act and the rights of landowners in the
context of compulsory acquisition. It was observed that the Court recognizes, the
significant challenges, urban areas face in managing slums and balancing the
rights of slum dwellers with the rights of private landowners whose lands are
encroached. The central issue before the Court was whether private land could
3 (2013) 4 Mah. L.J. 348
4 2018 SCC OnLine Bom 1214
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be compulsorily acquired for slum redevelopment, and whether landowners have
a preferential right to redevelop their own property. The observations made by
the Court are significant : Rapid industrialization led to mass migration to cities,
creating overcrowding and large slum clusters on both public and private lands
due to inadequate public housing and planning failures. Authorities often
neglected to protect open lands from encroachment and also failed to utilize
private lands appropriately, contributing to formation of slums and unhealthy
living conditions. Slum-related problems were longstanding, with increasing
complexity due to competing interests, monetary gains, and delays in slum
rehabilitation projects. Article 21’s guarantee of the right to livelihood and
dignity, along with Directive Principles (Articles 38, 39, 43 and 47), require the
State to improve living conditions and public health. Slums posed dangers to
health, safety, and morals, and existing municipal laws were insufficient; hence, a
special comprehensive law (the Slum Act) was enacted for uniform management,
improvement, and clearance of slums.
10.1 The Slum Act imposes onerous duties on authorities to improve slum
conditions and facilitate redevelopment in a manner consistent with legislative
intent. The Act creates statutory rights in favour of landowners and occupiers to
undertake redevelopment, and such rights cannot be ignored merely because
acquisition machinery exists. Acquisition must strictly follow Chapter I-A and
cannot bypass or negate the statutory rights conferred on owners/occupants to
undertake redevelopment themselves. The basic legislative objective includes
participation of landowners in redevelopment, reflected in Sections 3B(4)(e) and
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13(1) and (2); these rights cannot be overlooked is acquisition of land for
redevelopment of the slums and rehabilitation of the slum dwellers on such land,
under the Slum Act. Acquisition that ignores or overrides these participatory
rights would be contrary to the legislative scheme and is not permissible. A
harmonious interpretation is required so that land acquisition is used only when
the statutory purpose of redevelopment cannot be achieved by any other method.
The Court held that Section 14 acquisition powers must be exercised fairly and
only when the owner/occupant fails to submit or execute a redevelopment
scheme within a reasonable time after being called upon. There is no fixed
statutory time frame for landowners/occupants to submit redevelopment
proposals; what is reasonable depends on the facts and circumstances. Before
acquisition, authorities must record reasons showing why redevelopment by the
owner was not possible and how acquisition became necessary. The owner must
always be given a reasonable opportunity to show cause before any order under
Section 13(1) or Section 13(2) is passed. Acquisition without such procedural
fairness violates Article 300-A (Right to Property) and cannot be sustained. The
Court acknowledged that while FSI incentives under the Slum Act help eradicate
slums, involving private developers, however this can introduce strong
commercial interests which may dominate, making public accountability
essential. Authorities need to strike a dual balance between public interest and
legitimate private developer interests so that the scheme remains viable and fair.
Many slum projects fail or stagnate because developers with insufficient expertise
or wherewithal are appointed, Courts often encounter such cases. Where the
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landowner himself is willing and capable of redeveloping the slum on his land,
the law recognizes his right to do so, and such right must be honoured before
resorting to acquisition. There is nothing illegitimate in permitting the
landowner to redevelop his own slum-affected land; only upon his persistent
failure can compulsory acquisition be justified. In the context of the rights of
owners of private land being peremptory which would override the interest of
slum dwellers in relation to the acquisition of private land by the slum authority
for redevelopment of slums, the Court made the following pertinent
observations:
“3. In recent times in all urban areas we see large scale building
activities, city of Mumbai is not an exception and in fact would be the
epicenter of such activity, with skyscrapers being built wherever land is
available and the city has to grow only vertically. Apart from slums on
public lands there are as well slums on large private lands. Thus large part of
the development activity is also the development of slums and slum
rehabilitation areas. What would be the nature of the statutory rights of
private owners of land, in re-development of such slum areas under the
Slum Act? Whether the owner of the land would have a preferential right to
undertake re-development or the only method to redevelop such areas
would be to resort to compulsory acquisition of such private land are the
question as posed in this petition.
.......
44. It would be apposite to consider the statutory background in which
the controversy in the petition would fall. There are too many causes which
are attributable for creation of slums in urban areas. Rapid growth of
industries resulted in mass migration of population from rural areas to the
urban centres. This for the reason that places outside the urban areas were
not proving sufficient and fulfilling the requirements of the means of
livelihood, which were primarily depending on agriculture and other allied
activities. This resulted into overcrowding of the urban areas coupled with
lack of housing facilities, which created development of large slums in the
urban centers and heavily so in and around Greater Mumbai as also other
urban areas in, Maharashtra. The development in urban activities and
business did not find a corresponding development in the housing sector,
much less a provision for a decent housing for such large migrant
population. Also lack of planning by the concerned authorities to cater to
the housing requirements, the neglect of the authorities to safeguard open
public lands from encroachment as also the apathy of the private landlords
to prevent encroachment and/or to neglect the appropriate use of land so as
to prevent them being converted as slums by the occupants, added to the
urban problems. Consequently in the absence of affordable public and
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private housing, large population was compelled to reside in slums in
unhealthy and unhygienic conditions. It is difficult to visualize the number
of slums which are created on public and private lands in the city of
Mumbai, where land is limited. As the history unfolds the problems are not
recent. They are further aggravated and have become complex and more
particularly due to variety of interests playing active roles in slum projects,
rehabilitation projects in anticipation of monetary gains. This has been the
general scenario in such litigation, with which the Court is frequently
confronted.
45. We have one of the most ideal Constitution providing for a variety
of fundamental and other legal rights guaranteed to our citizens. Part III, of
the Constitution guarantees fundamental rights, under which Article 21
confers right to livelihood, which has been interpreted to mean, that a
person is entitled to live a life of dignity and not just an animal life. Further
the Directive Principles of State Policy as contained in Part IV of the
Constitution, under Article 38 and 39 provide for the welfare of the people
and the policy to be followed by the State. Article 43 and 47 are also
relevant when it comes to the obligations of the State to secure adequate
standard of living and improvement of public health.
46. Undoubtedly, slums had created menace to the safety, health and
morals of the inhabitants. There were multiple municipal laws in operation,
there was no uniformity in the provisions of these enactments as also the
provisions were not sufficient to improve the situation. It is for this reason
the legislature thought it appropriate to enact a special law to deal with the
improvement clearance and development of slum areas. The Slum Act was
accordingly enacted inter alia to make better provision for the improvement
and clearance of slum areas in the State, for redevelopment as also for the
protection of occupiers from eviction and distress warrants. The Slum Act,
was brought into force with effect from 11 August 1971. This legislation
casts onerous duties on the authorities. How far the same are discharged and
whether at all effectively to achieve the object of the legislation, are larger
issues which all the concerned need to ponder.
67. In our opinion considering the in-built mechanism which is
available under the clear provisions of section 3B(4)(c) and (e), Section
13(1) and (2) of the Slum Act, which empower the SRA to develop the land
by entrusting it to any agency recognized by it, any interpretation of the
compulsory acquisition provision (Section 14), oblivious to the due
consideration of these specific provisions of the Act, which enable the SRA
to bring about a re-development of the slum rehabilitation areas without
acquisition of the land, would amount to defeating such specific provisions
and creating unwarranted concentration of coercive and arbitrary power of
acquisition with the SRA.
74. ……….The law nowhere provides an automatic mandatory
obligation on any person to undertake a redevelopment scheme on the
declaration of such area as a slum or a slum rehabilitation area and in our
opinion rightly so. In the present case this issue would also go to the root of
the matter as the decision to acquire has been taken by the State
Government for the sole and the only reason that the petitioner had not
submitted a scheme for the redevelopment of the land, which in fact is a
reason available for the SRA to pass an order under section 13(1) of the Act
(as falling under Chapter IA) to appoint an agency and entrust the re-
development to such agency.
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75. ……....Thus unless it is determined for reasons to be recorded in
writing, as to how it is an unreasonable delay in submitting a scheme, this
conclusion to be the basis of acquisition, cannot satisfy the test of fairness
and reasonableness, and more particularly when the SRA/State Government
is depriving the person of the valuable constitutional right to property
guaranteed under Article 300-A of the Constitution.
79. No doubt the above rules conferring FSI benefits are a laudable
piece of legislation which enables the authorities to eradicate the slums in
urban areas, however when such redevelopment involves third parties to be
appointed and approved by the authorities to undertake the redevelopment,
commercial interest become dominant. Such interest are bound be varied
depending on the quantum of the area and the location of the slums. Thus
the authorities in discharging their public duties under the Slum Act are
required to satisfy a dual test namely of balancing the public interest and at
the same time taking care of the legitimate private interest so that the
scheme becomes viable. This includes appointment of such private parties
to undertake development who possess technical ability coupled with
substantial ability to undertake such schemes. We can surely take judicial
notice of the litigation which has reached this court where, slum projects are
languishing for want of such parties not completing the projects or
abandoning the projects and variety of complications arising from such half
executed projects. We have felt the need to record this for the reason that,
many of such projects may pertain to lands which are acquired under the
Slum Act. Thus if the land owner is himself interested to develop the land
and that law confers such rights on the landowner/landholder or the
occupant then it would surely be in the fitness of things that such legal
rights are first recognized before the other powers are invoked. There can be
nothing illegitimate in the landowner himself being granted an opportunity
of redeveloping his land under slums, instead of another developer doing it
and only on his persistent failure the authority can certainly resort to acquire
the land.”
(“emphasis supplied”)
11. In Susme Builders Private Limited Vs. Chief Executive Officer, Slum
5
Rehabilitation Authority and Ors. , the Court interpreted the scope of SRA’s
powers under Section 13(2) and related provisions. The Supreme Court rejected
the submission that SRA has unlimited powers under Section 13(2); instead, it
held that SRA may take over the project only in specific situations, namely: (i)
Contravention of plans approved; (ii) Breach of restrictions/conditions imposed
under Section 12(10); (iii) Failure to complete development within time. The
requirement of timely completion flows from the Letter of Intent (LOI) issued by

5 (2018) 2 SCC 230
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SRA and from agreements between slum-dwellers and the developer; violation
triggers Section 13(2). When there is a clearance order under Section 12(10),
SRA’s power to act arises only if conditions in the clearance order are violated;
otherwise, SRA cannot automatically invoke Section 13(2). Even assuming SRA
had no express power under Section 13(2), it still possesses the authority to
cancel the LOI because the LOI is issued by SRA itself; hence, SRA cannot be
powerless to revoke it. SRA’s powers are also derived from Section 3-A(3)(c) &
(d), which require SRA to ensure implementation of the Slum Rehabilitation
Scheme and take all necessary steps for achieving the objective of slum
rehabilitation. These provisions show that SRA is not merely empowered but is
duty-bound to intervene where needed, especially when slum-dwellers have
suffered for decades because of delays by developers. In this case, Susme Builders
had a dual role, first as the power-of-attorney holder of the owner and as a
developer appointed by the society, which heightened the conflict. Since the
redevelopment work could not proceed without SRA’s permission, SRA retained
the power to revoke such permission due to the developer’s unjustified delay. The
Court held that SRA’s action in removing Susme from the project after a 25-year
delay was justified, as slum-dwellers had suffered enough and the statutory
objective of rehabilitation demanded intervention. The observations made by
the Supreme Court are as follows :-
45. We cannot accept such a wide submission. According to us, under
Section 13(2) of the Slum Act, the SRA has the authority to take action and
hand over the development of land to some other recognised agency under
three circumstances:
(i) When there is contravention of the plans duly approved;
(ii) When there is contravention of any restriction or condition
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imposed under sub-section (10) of Section 12 of the Slum Act;
and
(iii) When the development has not taken place within time, if
any, specified.
46. The requirement to complete the development within time may be
there in the letter of intent issued by the SRA or may be in the agreement
entered into between the owner/developer with the slum-dwellers. Such
condition, if violated, would attract the provisions of Section 13(2) of the
Slum Act. Over and above that, when a clearance order is passed, then in
terms of sub-section (10) of Section 12, the competent authority can
include a condition with regard to the time within which the development
should be completed and, in that case, also Section 13(2) would be
attracted. We are not, however, able to accept the very wide argument that
in case of delay, the condition that is violated must be laid down under
Section 12(10) of the Slum Act.
47. There may be cases where the slum-dwellers do not offer any
resistance and willingly consent to move into transit accommodation
provided by the owner/developer. Therefore, the conditions laid down
under Section 12(10) will come into play only when there is a clearance
order, but in case there is no clearance order, then under Section 13(2), the
SRA would be empowered to take action when there is violation of any plan
or when there is violation of any condition relating to developing the
project within time. The time-limit can, some time, be provided in the letter
of intent, in the agreement or even in the regulations.
48. Having held so, we are of the view that Shri Darius Khambata,
learned Senior Counsel, is right in his submission that normally under
Section 13(2) of the Slum Act, action by the SRA has to be taken against the
owner. Here, we may repeat that this is a unique case where the slum-
dwellers are the members of the owner Society. The Society, in turn, has
given power of attorney to the builder. The builder virtually has two roles—
one as developer and the other as power-of-attorney holder of the owner.
Both are closely interlinked and inextricably mixed with each other.
Therefore, though normally we would have accepted the contention that
under Section 13(2) action can only be taken against the owner, in the
present case, we are unable to accept this contention in its totality. We may
point out that even the SRA, in its order, has itself noted that since the
Society is the owner of the plot of land, it is empowered and within its right
to terminate the agreement executed with the said developer for breaches
committed by the developer. It has, however, held that a private dispute
between the Society and the developer cannot prevent the SRA from
discharging its obligations. The SRA agreed with the submission made by
the Society that Susme had not completed the project within time. It has
taken action under Section 13(2) of the Slum Act. The action taken by the
SRA is to remove Susme as developer which amounts to cancelling the letter
of intent issued in favour of Susme.
49. Otherwise, there would be an anomalous situation where the
Society would have terminated its contract with Susme but the letter of
intent issued by the SRA would continue to hold the field and it would be
entitled to develop the land. The Society approached the SRA, in fact, asking
it to take action against Susme. Since the SRA is the authority which issued
the letter of intent, it will definitely have the power to cancel the letter of
intent.
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50. We are of the considered view that in the peculiar facts and
circumstances of the case where the slum-dwellers are virtually the owners of
the land as members of the owner Society, the SRA had the power under
Section 13(2) of the Slum Act to issue the order dated 24-2-2012.
Whether the SRA has any other power to remove the developer
51. Even if we were to assume that the SRA did not enjoy this power
under Section 13(2) of the Slum Act, we are of the considered view that
since it was the SRA which issued this letter of intent, it necessarily must
have the power to cancel the same. The SRA can also derive this power
under clauses ( c ) and ( d ) of sub-section (3) of Section 3-A of the Slum Act,
which read as under:
“3-A. Slum Rehabilitation Authority for implementing Slum
Rehabilitation Scheme .—(1) Notwithstanding anything contained
in the foregoing provisions, the State Government may, by
notification in the Official Gazette, appoint an authority to be
called the Slum Rehabilitation Authority for such area or areas as
may be specified in the notification; and different authorities may
be appointed for different areas.
*
(3) The powers, duties and functions of the Slum Rehabilitation
Authority shall be—
*
( c ) to get the Slum Rehabilitation Scheme implemented;
( d ) to do all such other acts and things as may be necessary for
achieving the objects of rehabilitation of slums.”
52. A bare reading of these provisions shows that in terms of clauses ( c )
and ( d ) of sub-section (3) of Section 3-A of the Slum Act, the SRA not only
has the power, but it is duty-bound to get the slum rehabilitation scheme
implemented and to do all such other acts and things as will be necessary for
achieving the object of rehabilitation of slums. In this case, the SRA was
faced with a situation where the slum-dwellers were suffering for more than
25 years and, therefore the action taken by SRA to remove Susme for the
unjustified delay was totally justified.
53. A perusal of the various provisions of the Slum Act would show
that normally in a case falling under the Slum Act, it is the owner of the
land, whether it be the Government, a statutory authority or a private
person, who will be interested in the development work. Normally, the
occupiers will be encroachers of slum land. Therefore, there will be a
conflict of interest between the occupiers and the owner. The owner, in
turn, will always engage a developer/builder to carry out the development
work. In case the owner gives a power of attorney to the developer, as in the
present case, the developer now has two identities — ( i ) the power-of-
attorney holder of the owner, and ( ii ) the developer. As far as the present
case is concerned, the Society is made up of the members who are occupiers
and this Society has given power of attorney to the developer Susme.
Therefore, the developer Susme is actually having a dual role of owner and
developer. Both the letters of intent have been issued in favour of the
Society, Susme and the architects of Susme. Susme could not have carried
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out the development work on the basis of its agreement with the Society. It
needed the permission of the SRA. Therefore, SRA can obviously revoke
such permission. ”
(“emphasis supplied”)

6
12. In Galaxy Enterprises Vs. State of Maharashtra , this Court expressed
serious systemic concerns about the functioning of slum rehabilitation in
Mumbai. The Court noted that the Supreme Court and High Court decisions
emphasized the need for expeditious and effective rehabilitation of slum dwellers
living in inhuman conditions, to fulfill the object of the Slum Act. Despite the
long existence of the Slum Act (1971). It was observed that large number of
disputes on such front still reaching was indication of the fact that slum
eradication and rehabilitation efforts are not functioning with the required
efficiency and direction. The observations of the Division Bench inter alia
touched the following :
“12.1 Slum dwellers often lack knowledge of slum redevelopment schemes
and are vulnerable to manipulation by so-called leaders and developers,
leading to mistrust, disputes, and derailment of rehabilitation projects.
Many slum schemes remain incomplete for years and are stuck in litigation
or administrative delays, defeating the very purpose of speedy slum
redevelopment. The Court questioned whether the SRA has a robust panel
of genuine developers with the technical and financial capacity to undertake
redevelopment, noting that the selection process must be open, fair, and
transparent. The burden on slum dwellers to appoint developers and pursue
redevelopment was unreasonable; the State and SRA must take a more
proactive role to ensure professional, time-bound redevelopment.
Redevelopment must be undertaken by honest, credible, and trustworthy
developers appointed through the SRA or other statutory bodies and not
left solely to the slum dwellers who lack capacity and resources. The
Government and SRA must urgently examine systemic failures and devise a
foolproof mechanism to resolve recurring issues and implement the
beneficial objectives of the Slum Act.
12.2 The Court criticized the authorities for adopting a myopic
approach, failing to enforce statutory obligations, and allowing slum
schemes to remain stagnant for years without satisfactory explanation. The
authorities must monitor schemes closely, ensure commencement and
timely completion, and prevent delays that defeat the Slum Act’s objectives.
6 2019 SCC OnLine Bom 897
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Developers or agents who exploit slum projects for commercial gain must
be reprimanded and prevented from treating redevelopment as a mere
commodity. The SRA cannot continue with a developer when the society
loses confidence in him; a developer appointment is not absolute and must
serve the purpose and object of rehabilitation.
12.3 In cases where land belongs to MHADA or the State, it is the
responsibility of these authorities to ensure prompt rehabilitation of slum
dwellers, and their inaction or neglect cannot be justified. The record of the
court proceedings showed that MHADA and State authorities failed to
utilize the law effectively and allowed private developers to take over,
leaving slum dwellers helpless. The Court stressed the need for a concrete
government policy and a panel of reputed developers who can genuinely
implement rehabilitation schemes efficiently. Dealing with government land
requires responsible exercise of public power, and the State cannot abdicate
its responsibility by leaving matters entirely to private developers. Effective
guidance, strong policy direction, and timely action from the State are
essential, especially in cities like Mumbai, where land scarcity makes slum
redevelopment critically important. The State must urgently adopt such
measures in Mumbai and other fast-developing cities before the situation
becomes irreversible. Considering the volume of disputes reaching the
Court under the Slum Acts, the Court made the following observations :-
“3. There is a wealth of decisions of the Supreme Court and this Court
emphasizing on the expeditious and effective rehabilitation of slum
dwellers, who live in inhuman conditions, so as to achieve in letter and
spirit, the object and intention of a fairly old State legislation namely the
"Maharashtra Slum Areas (Improvement, Clearance and Redevelopment)
Act 1971". Nonetheless, considering the volumes of disputes still reaching
the Courts, it can certainly be said that time is ripe, if not too late, to
ponder, whether things are realistically working in the right direction, to
eradicate slums and rehabilitate the slum dwellers, with the desired efficacy
and expedition. This not only at the hands of the authorities but also at the
hands of the other stake is on the rules permitting, the selection and
appointment of developers to undertake a Slum Rehabilitation Scheme,
being conferred on the holders. The vital issue which has often led to
controversy and disputes, slum dwellers, who are hardly expected to know
the nitty-gritty of the slum redevelopment schemes. It is seen that the so
called leaders of the slum dwellers who are themselves in need to be
rehabilitated, are often lured by developers and their agents, and once a
developer is appointed, what normally prevails is a constant fear of
incertitude and skepticism amongst the slum dwellers, leading to disputes
on variety of issues affecting their final rehabilitation. Such issues not only
frustrate the very object of a speedy slum redevelopment but completely
derail the slum schemes. It can be seen that scores of slum schemes have
remained incomplete for years together and are languishing on such issues,
either in litigation before Courts and/or before the authorities. These
schemes need not face such ordeal, including of an unending litigation. To
change the developer is no answer as even this process involves dispute
resolution and ultimately lengthy litigation from one form to another.
4. Can the Slum Rehabilitation Authority not have a robust panel of
bonafide developers who have genuine business interest to redevelop slums,
of course with commercial benefits as conferred under the rules, and who
can be appointed by an open and fair scheme of selection and allotment of
slum projects and who would be accountable to the Authority.
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5. It is high time that, learning from the past experiences, the burden
on the ill equipped slum dwellers to be responsible to appoint developers
and pursue the redevelopment scheme is removed and to do away the
ordeal of the slum dwellers to go on knocking the doors of different
authorities for years together when the developers fail to perform.
Redevelopment to be undertaken professionally and in a time bound
manner is the need of the day, even to fulfill the ideals, which the
Government intends to achieve. What is necessary is the initiative of a
redevelopment, by genuine, honest and trustworthy developers appointed
through the Slum Authority or any other Special Body created for the said
purpose and not to leave it to the slum dwellers to re-develop the slums.
This for the reason that the slum dwellers are supposed to be merely
interested in their rehabilitation and can have no other interest. All these
efforts are necessary, as a step forward to achieve an object of having an ideal
city free of slums. It cannot be countenanced that the slums be redeveloped
only when the slum dwellers feel the need of a redevelopment and the
Government Authorities cannot initiate redevelopment and cannot initiate
a suo motu action in that behalf. It is hence, for the Government and the
Slum Authority to give its anxious consideration to these issues and in its
wisdom to device a substantial, nay a foolproof mechanism, by undertaking
a study and identify these grey areas, so that the helping hand as extended
by the legislature in providing this beneficial law as far back in 1971 that is
almost 50 years back is held strongly and firmly by all concerned. It is never
too late.
57. There cannot be a myopic approach to these issues of a delay in
implementation of a slum rehabilitation scheme. Things as they stand are
required to be seen in their entirety. The only mantra for the slum schemes
to be implemented is it's time bound completion and a machinery to be
evolved by the authorities, to have effective measures in that direction to
monitor the schemes as a part of their statutory obligation to avoid delays.
Non-commencement of the slum scheme for long years and substantial
delay in completion of the slum schemes should be a thing of the past. In
the present case, looked from any apple there is no plausible explanation
forthcoming for the delay of so many years at the hands of the petitioner to
take bare minimum, steps to commence construction.
58. The authorities should weed away and reprimand persons who ate
hot genuine developers and who are merely agents and dealers in slum
schemes. These persons after get themselves appointed as I developers, yo
ultimately deal/sell the slum schemes, as if it is a commodity. Any loopholes
in the rules to this effect, therefore, are required to be sealed.
60. In any case, the developer cannot be said to possess a vested right
which would mandate the SRA to continue it's appointment, for such delay
and when the body appointing the said developer namely the society itself,
in the given set of facts, bonafide and for an acceptable reasons, lacks
confidence in the petitioner as appointed by Between the slum society and
the developer, it is merely a contractual dispute, It cannot be said that the
society in adverse circumstances would have no authority in a resolution so
passed by the majority to remove a developer. The role of the S.R.A. under
law is to further the interest of the slum scheme by exercise of it's powers in
the best interest of the slum redevelopment and pass such appropriate
orders to achieve the said object, in exercising its power inter alia under
Section 13(2) of the Slums Act.
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65. Before parting, it needs to be noted that the land in question is a
land belonging to the State Government/MHADA and if the land is under
slums and the occupants are suffering, whether it would also not be the
responsibility of the MHADA considering the provisions of Chapter IX of
the Maharashtra Housing and Area Development Act 1976, being a chapter
on "Environmental Improvement of Slums", providing for Section 104 to
Section 113 of the said Act, to take time to time actions and consider with
utmost priority the rehabilitation of the slum dwellers?. It clearly appears
that in the present case, the entire re-development of the slums is left in the
hands of the developer by the slum dwellers, who are struggling to appoint
one developer after another. The MHADA appears to be an absolute alien
when all these actions are being taken by the society. Already, about three
developers are appointed by the Society including the present developer
M/s. Bindra, as noted above, despite this whether the slum dwellers will at
all see the light of the day, is a factor which is required to be seriously
considered by the slum rehabilitation authority and the MHADA by having
a compliance and a follow up mechanism. It is high time that at least in
regard to the slums on government lands or land belonging to a public
bodies, the government needs to have a concrete and effective policy and
which include a panel of reputed contractors/developers which would
genuinely undertake and implement the slum rehabilitation scheme and
bring a speedy and effective rehabilitation of slum dwellers. This is required
to be observed for the simple reason that the record in the present petition
would clearly show that the MHADA or the State authorities have not
utilised and/or have turned a blind eye to the provisions of the law to take
effective steps in the larger interest of the society, instead things were
completely left at the hands of a private developer and the helpless sum
dwellers. Dealing with the Government land certainly involves dealing with
the public largess. Surely the hands of the State and its authorities are not so
weak. What is required is a willingness and an able and authoritative
guidance from those who wield these powers for public good. As noted, it
would be for the good wisdom of the State and its policy makers to
deliberate on these issues which are "also" of immense importance to a city
like Mumbai where large parts of the limited lands are under slums. Such
approach also needs to be timely adopted for the other fast developing cities
in Maharashtra, where the government land is scarce, before it is too late.”
(“emphasis supplied”)
13. In Abdul Majid Vakil Ahmad Patvekari Vs. Slum Rehabilitation Authority
7
& Ors. , the Division Bench of this Court addressed issues of encroachment on
government land and the limits of rehabilitation rights. The Court held that
encroachers on Government land do not acquire any right under the Slum
Rehabilitation Scheme merely because they have remained on such land for some
time. The State’s policy to protect slum dwellers cannot be stretched to elevate
7 (2022) 2 Mh. L.J. 382
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their occupation of Government land into a protected or permanent right. Slum
dwellers can only be rehabilitated on the same land if feasible, or else in nearby
alternate accommodation; they cannot insist on retaining possession of
Government land. Encroachment on public land cannot be tolerated, and
prompt action is required to remove encroachments, especially where authorities
knowingly allow such occupation for long periods. Long-standing encroachments
create a false expectation in encroachers that they are entitled to rehabilitation at
public cost, which is contrary to Government policies. Negligence of officers in
failing to protect public lands forces the State to later acquire private lands for
public projects, causing unnecessary financial burden and wastage of taxpayer
money. The Court criticized Government policies that effectively reward
encroachers by granting free rehabilitation benefits, describing such policies as
contrary to public trust principles. The Court questioned whether any audit had
been undertaken to assess the extent of Government land lost to encroachments
and steps taken to prevent further loss. Loss of public land due to encroachments
affects the availability of land for essential public institutions and utilities,
undermining the functioning of the democratic system. The State must restore
encroached Government lands and ensure they are used strictly for public
purposes; genuine political will is required to protect public property.
Encroachers on Government land cannot demand rehabilitation as a matter of
right, nor can such a right be equated with ownership or compensation. The
intention of the Slum Act and State policies is not to compensate encroachers for
occupation of Government land but to rehabilitate slum dwellers in accordance
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with lawful policy. If the petitioners’ stand were accepted, it would become
impossible for the State to undertake public projects on Government land for the
larger public good. The Court in the said decision observed that encroachers on
Government land have no right under the Slum Rehabilitation Scheme and made
the following observations :-
“9. Having heard the learned counsel for the parties and having perused
the record, at the outset, we may observe that the petitioners, who initially
encroached on the Government land and who had remained on the same
for sometime so as to fall within the beneficial policy of the State
Government of being protected slum dwellers, cannot elevate their
protection to such an extent that such slum dwellers have to be rehabilitated
either on the same land, if any remaining after the project work is
completed or they be provided a permanent alternate accommodation
within the vicinity. In our clear opinion, any encroachment on public land
at the threshold ought not to be tolerated and prompt action is required to
be taken to remove such encroachment, more particularly when those who
are custodians of the public land are well aware that encroachments for long
periods will clothe the encroachers with rights to seek rehabilitation at
public costs under the prevalent Government policies. It is not new that
valuable Government land on account of the negligent approach of the
officers in charge by not protecting such lands from encroachment have
stood extinguished from the Government's holding, causing a serious
cascading effect, namely, that whenever land is required for any public
purpose, the Government is required to acquire the same from private
holdings, causing an unwarranted burden on the public exchequer and a
sheer waste of the tax payers money. This for the reason that the
Government despite its mighty machinery did not protect its valuable land
and permitted to be encroached to be developed by the slum dwellers and
their developer, with the Government nowhere in the picture. Such
inaction, in our opinion, amounts to grossest violation of the public trust
doctrine as a result of the patent abuse of the powers vested in such
Government machinery in not protecting public property. We also have a
grave doubt about the policy of the State Government which rewards the
encroachers of the public land by a free of cost accommodation. In our
opinion, such policies qua the Government land nor only violate the
principles of equality but certainly fall foul of the doctrine of public trust.
We wonder as to whether at any point of time an audit in regard to the
encroached Government land or lands belonging to public authorities in the
State of Maharashtra was undertaken. As to how many such lands have
vanished due to encroachment and as to what steps have been taken to
preserve such lands are questions which need to be answered to “we the
people", and accountability fixed for negligence in this regard. We say so, as
there can be no two opinions that even land for important public
institutions and other government utilities is not available, which certainly
has adversely affected the very functioning of such institutions in a
democratic set up. We hope that the Government awakens on such issues
before it is too late and restores all the encroached Government lands for
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the benefit of public and strictly to be used for public purposes. This would
certainly require a genuine political will and consciousness towards larger
public benefit.
10. The petitioners occupying Government land cannot take such an
adamant stand as canvassed by them, when they are occupying Government
land. Mere rights of rehabilitation cannot be recognized to be equivalent to
a right of ownership or as if it is some compensation being offered to the
slum dwellers for their encroachment and occupation of Government land.
This is neither the intention nor the object even of the slum legislation and
slum policies of the State Government. The insistence of the petitioners if
accepted and that too in the context of the 'State' undertaking such public
projects, it would be impossible to plan any such project using the
Government land for the benefit of the public at large.”
(“emphasis supplied”)

14. In High Court on its own motion (In the matter of Jilani Building at
8
Bhiwandi) vs. Bhiwandi Nizampur Municipal Corporation and Ors. , the
Division Bench of this Court, while exercising PIL jurisdiction, made extensive
observations on illegal constructions, slum proliferation, and administrative
failure. The Court reiterate that the main object of the Slum Act is the
expeditious and effective rehabilitation of slum dwellers living in inhuman
conditions, but the rising volume of disputes shows that this objective is not
being achieved in practice. Persistent disputes arise because slum dwellers are
unaware of redevelopment processes and are often misled by so-called “leaders”
influenced by developers, resulting in loss of trust and prolonged litigation. Many
slum redevelopment schemes remain incomplete for years, and the existing
system fosters delays, lack of transparency, and exploitation of slum dwellers,
defeating the very purpose of the Slum Act.
15. Appointment of developers must be based on fairness, transparency, and
credibility, as unfit or dishonest developers derail schemes and cause immense
hardship to slum dwellers. The burden cannot be placed entirely on slum
8 2022 SCC OnLine Bom 386
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dwellers to monitor developers; the State must adopt foolproof mechanisms,
maintain strict oversight, and ensure timely completion. There must be no
myopic approach; authorities are required to actively monitor progress, enforce
statutory obligations, and prevent delays in commencement and completion of
schemes. Authorities must reprimand and restrain non-genuine developers and
middlemen who treat slum redevelopment as a commodity, thereby defeating
public purpose. The Court emphasizes that the SRA must act in the larger
interest of slum dwellers, including removing developers who fail to perform,
even if societies initially appointed them.
16. Encroachers on government land cannot claim an equivalent right to
rehabilitation; mere rehabilitation benefits cannot be elevated to ownership rights
or be treated as compensation for encroachment. Government cannot be
compelled to spare public land for encroachers in a manner that obstructs public
projects; policies must not reward illegal occupation of valuable government land.
Sustained encroachment on government land is often encouraged by authorities’
inaction, creating massive losses to the exchequer and incentivizing further
encroachment. Such policies violate the public trust doctrine, as public land is
diverted to private hands under the guise of slum rehabilitation, contrary to
constitutional obligations. Long-standing failure to audit encroached public
lands and fix accountability of negligent officers has allowed encroachments to
proliferate and public land to vanish without trace. Illegal construction,
unauthorized encroachments, and the collapse of structures reflect systemic
lawlessness and administrative apathy, severely threatening public safety. Political
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influence, vested interests, and slumlords create an environment where
enforcement is weak, illegal structures remain, and public land is continuously
grabbed.
17. Numerous circulars issued by the State to remove encroachments and
unauthorized constructions were never effectively implemented, turning official
directives into “dead letters.” The municipal corporation and planning authorities
have statutory duties to verify and remove unauthorized structures, including
those in slum areas, but have consistently failed to act.
18. Section 47 of the Slum Act does not restrict the planning authority’s
power to act against illegal structures in slum areas; authorities cannot use the
Slum Act as an excuse for inaction. Dereliction of duty by municipal and
government officers has aided the proliferation of slums, the grabbing of
government land, and structural dangers, forcing citizens to seek refuge in slums.
The MCGM, as planning authority, retains jurisdiction to take action against
unauthorized and illegal structures across the entire Mumbai region, even in slum
areas. Authorities must not succumb to external pressures or vested interests; they
must enforce construction, planning, and slum laws rigorously to prevent future
calamities.
19. Illegal encroachments and unauthorized constructions divide society into
two classes, firstly of law-abiding citizens who suffer, and secondly, those who
profit by violating the law with impunity, often with official support. Rewarding
encroachers with free tenements encourages illegality and siphons public land for
private gain, directly breaching constitutional governance norms.
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20. Public officials who fail to discharge their duties or evade accountability
undermine the rule of law and derail constitutional machinery; courts are
compelled to intervene to restore public confidence. Anti-corruption mechanisms
must be strengthened due to rampant corruption in municipal governance, where
officers deliberately avoid action against illegalities. Exponential growth of slums
and illegal constructions stems from the absence of long-term planning and
failure to create adequate mass housing for the working population.
21. Migrant workforce needs legitimate housing, and unplanned slum growth
cannot substitute for state’s failure; the right to housing is part of Article 21 and
international human rights law. Mumbai’s severe housing burden and massive
inequalities between luxury developments and surrounding slums reflect
systemic planning failures and disregard for public needs. Despite large municipal
budgets, the State and corporations fail to allocate adequate financial resources
for affordable housing and proper urban planning. A dangerous nexus exists
among politicians, developers, bureaucrats, and slumlords, enabling
encroachment, regularization, and later redevelopment for private profit under
the guise of helping slum dwellers. Laws designed to protect weaker sections are
misused to facilitate commercial exploitation, betraying public trust and
constitutional values. Governance has become driven by political motives rather
than constitutional obligations, with the ultimate casualty being the
compassionate Constitution and public welfare. The following are some of the
significant observations made by the Court :-
“3. We are informed by the Corporation that a vast portion of the scarce
land in the city is under slums, which includes all kinds of lands, namely,
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the State Government lands, land belonging to public bodies as also to a
small extent, private lands. The percentage of population in Mumbai and
outskirts is also too large. We wonder, that when slums are openly allowed
to proliferate on scarce and valuable public land, whether the well
established principles under the “rule of law” at all prevails in relation to the
rules, to transfer ownership of such lands from the “State” to the private
parties. Something which possibly does not happen elsewhere in the
country, is what has pained us, namely, that sustained encroachment on
valuable government land in this city is encouraged to the benefit of
encroachers and developers and becomes available for commercial
exploitation. It cannot be expected, that on executive instructions and
subordinate legislation, the State’s ownership of land stands divested. The
severity is such that when this land is being taken away by these forces, the
owner of the land, namely, the Government or a public body and
sometimes the private owner (if fails to assert his rights), has no say
whatsoever. It becomes a situation of fait accompli. Is this the manner in
which the law would require scarce public largesse or private land to be
siphoned off, merely because it has the garb of a slum? Whether or not the
doctrine of public trust applies when the government land is taken away in
a manner not known to the Constitution? Whether the might of the
unscrupulous forces is so strong that even the law makers would turn a
blind eye to such Constitutional requirements ? These are some of the issues
raising a deeper concern when we think about collapse of structures in the
slum areas.
45. There can be no two opinions that the issues of encroachment on
public land, mushrooming of slums on such lands and illegal constructions
on such land, as also, on any open land in the city, and the total collapse of
the machinery available in law to control these issues, adversely affecting the
urban agglomeration, is a sad story of an invited misery and a massive
failure on the part of the State Government and the municipal bodies. An
overview of these adversities, depicts a sorry and painful state of affairs,
having a harmful and an overbearing effect not only on those who are
residing in the slums and unauthorized constructions, but also, the hard
impact it creates on the infrastructure in cities and the continuous and
successive damage to the limited resources. The consequence of all this, is
ghastly and harmful. As to what is in store for the future generations cannot
be imagined. Admittedly, these are larger issues to be effectively looked into
by the policy makers before things further worsen, albeit there appears to be
a stage of no return, unless aggressive planning and commitment to the
constitutional principles is kept at the forefront by the policy makers.
Happening of encroachments, unauthorized and illegal structures being put
up and deliberate neglect to these issues, when all this is unpleasantly
happening before the open eyes and to the knowledge of the authorities, is
not without purpose. From the report of the learned Commissioner, it
appears to be a deep rooted menace, perpetrated for years together, which
has ruined the cities and its scare resources. There are vested interests as
pointed out by the learned Commissioner, namely political interest,
slumlords and ultimately the cancer of corruption, which is the primary
cause, for the authorities not taking action to remove illegal structures
which continue to exist for years together.
46. However, it clearly appears that the State Government being aware
of the grabbing of Government lands at the hands of these unscrupulous
elements, from time to time, issued directives to the Additional Collector
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(Encroachment), Chief Executive Officer of the Slum Authority and other
Chief Officers of the local authorities. Such directives made it incumbent to
take all steps to protect the Government lands, by preventing grabbing of
lands by encroachment and to register criminal complaints of such
encroachment and taking stern action of demolition of the unauthorized
constructions and unauthorized hutments. However, it appears that the said
directives at all material times have remained to be dead letters. Learned
Commissioner has referred to some of the Circulars, which, if were to be
implemented in its letter and spirit, the scenario would have been
completely different, from what it prevails today. The city would have been
a better place to live. Hundreds of Government lands could have been
saved, to be utilized for public purposes. The circulars are certainly binding
on the Government and its officers, provided the officers had an intention
to look at them. The directives as contained in some of the Circulars are
required to be noted with particular emphasis of their relevant contents.
They read thus: (I) By Government Circular dated September 19, 2003
issued to the CEO, SRA, Additional Collector (Encroachment & Removal),
Mumbai City, Eastern Suburb, Western Suburb and the Director, Mumbai
Development Division, on removal of unauthorized constructions and
unauthorized hutments on semi-Government and private lands, guidelines
were issued stating that day by day encroachment, illegal constructions and
illegal hutments are increasing on such category of lands and such activities
are required to be controlled and which were sought to be controlled by
various circulars as referred in the reference in the said circular. This circular
stated that the respective divisions would be primarily responsible to protect
such land, however, as the concerned division did not protect the lands,
illegal constructions setting up of unauthorized hutments have taken place
and have increased. It was directed that the concerned Division to take
immediate steps to prepare a scheme to protect the lands. The circular
records that all unauthorized hutments and illegal constructions in the
hutment areas put up after 1 January 1995 should immediately be removed.
It was also provided that if these instructions are not implemented by the
concerned officer or there is negligence or delay in taking such action, in
that event the proceedings would be initiated against him as per the
provisions of the Slums Act. The officers were also instructed that in regard
to the unauthorized constructions, the concerned officer shall meticulously
and from time to time adhere to the different directives of the State
Government. (II) By a further Circular dated September 7, 2010, the State
Government again issued directives in regard to the prevention of
encroachment, demolition of unauthorized construction/hutments and
registering of complaints. The Circular stated that from time to time the
directives were issued, however, there was no serious implementation of the
said circular at the level of different divisions as noticed by the State
Government. As a result of which the Government lands were encroached
and are being grabbed. The Circular states that in some instances the
persons in the adjoining areas and/or local people are opposing removal of
encroachment and demolition of unauthorized structures and force is
required to be used to resist such opposition which creates law and order
problem. However, in this situation, considering the ownership of the
Government in respect of its land, the Government machinery was required
to register complaints, as for non-filing of such complaints, the police are
not in a position to take action, as informed by the Home Department.
Considering such situations, the Government issue the following
directives:- (i) To notify all details of the Government land and which be
displayed in the Revenue Office or in the office of the Local bodies at a
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prominent place alongwith which a clear notice be given that if the
Government land is encroached, legal action would be taken in regard to
such encroachment. (ii) If there is any encroachment on the Government
land or the land belonging to the local bodies, immediate action be taken to
remove the encroachment or to demolish the unauthorized construction.
(iii) To prevent encroachment on the Government land is the responsibility
of the respective Division in which the land is situated. For such reasons, the
concerned Talathi, Circle Officer, and in respect of the forest land, the
authorized officer, Gramsevak in respect of grazing lands and public lands
and the Chief Officers of different municipal corporations, and in respect of
other land where the Government land is in a particular division, the
respective local officers, are under an obligation to immediately file a police
complaint. In the event, there is any shifting of responsibilities to register a
police complaint, the Senior Officers shall hold such officers responsible
and take action. (III) On similar lines, a further circular dated 10 October
2013 was issued by the State Government in its Revenue and Forest
Department, reiterating the directives as issued in the earlier circular dated 7
September 2010.”
47. The menace of continued encroachments on Government lands and
thereafter, illegal and unauthorized constructions being undertaken post
encroachment, are also a result of an unwarranted protection being
conferred on the slum dwellers by the policies of the State Government,
which protect the interest of the slum dwellers by awarding a premium on
such illegality. This merely for the reason that the government machinery
failed to take any action to remove such encroachments and with impunity
continued these encroachers to remain on government land for years
together. The encroacPer se, hments are of two categories, those who have
encroached for commercial purpose (those who have grabbed public land
for installing shops etc.) and those who have encroached for putting up
structures for residential user. Under the government policies both these
encroachers are recognized and rewarded by providing alternate tenements
of the nature they were occupying. The government policies issued from
time to time to protect such encroachers, if their names are found in the
voters list on a cut-off date being fixed at the ipse dixit of the Government.
In our opinion, fixing of such arbitrary dates to protect the illegality of
encroachment and ultimately to reward the encroachers with a free of cost
permanent structure on the same government land, is certainly not an
exercise of power, the constitutional principles would permit. These
situations have added to the alarming woes of the city. It is no more a secret
that these policies, which appear to be innocuous and intended to primarily
protect the slum dwellers, resulted to be also of a political concern, as these
large slums also constituted potential vote banks.
48. What can be the logic and any legal sanctity to a policy which
rewards encroachment on public land by granting free of cost tenements, on
the very same land amounting to a bonanza for its private exploitation? By
such modus operandi, public land, merely because of it being encroached,
vanishes from the public holding and most astonishingly the basis for the
allotment of tenements under the redevelopment process, is identification
of an encroacher by his voters ID, on the basis of an arbitrary cut-off date
fixed by the government. In fact, such policies create a mechanism being
made available to the slum dwellers and thereafter private interest like that
of the developers, to obtain a surreptitious allotment of public/government
land for commercial exploitation, for profits by a backdoor method,
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completely contrary to the well settled principles of allotment of State
largesse, known to the Constitution. This more particularly, when there is
an allotment of a small piece of public land for a lawful purpose, many a
times there is a hue and cry. However, when large tracts of public land are
being gulped by encroachers, would the legal machinery remain a mute
spectator?
51. On the above backdrop, it would be appropriate to recapitulate
some of the significant and glaring findings as made by the learned
Commissioner, in the above context, which are as under:
a. The cutoff date of unauthorized hutment has been extended from
time to time based on the representation made by the elected
representatives.
b. Although the municipal corporation is routinely taking action on
the unauthorized structures including in the slum areas but due to
continuous extending of the cut-off dates by giving protection to the
slum dwellers, it is difficult for it to plan definite demolition
programme in the slums.
c. Within the MCGM area, there are various Government lands as also
and various planning authorities such as MMRDA, MHADA, MBPT
etc.
d. Due to high real estate costs in Mumbai, land mafias are actively
involved in unauthorized constructions. The land mafias use their
muscle power/threats, political influences to stall actions against
unauthorized structures by pressurizing the lower-level staff working
under the Designated Officers.
e. Such members of the municipal staff remain under constant fear of
assault/attacks by such unscrupulous elements since they do not have
regular police protection.
f. There are criminal elements involved in the unauthorized
development, hence, it is not possible for the civic staff to take action
without proper support of the police department. It thus becomes
difficult to take immediate action on the unauthorized structures once
they are erected illegally.
g. A sympathetic view is always taken by the elected members and the
Courts about the demolition action and to dislodge such affected
persons during four months of monsoon. In cases where the Court
finds that the action initiated by the authorities are faulty and directs
the authorities to follow due process of law in initiating demolition
action, it is seen that in these situations the organized mafia misuses the
ad-interim/interim orders passed in such matters and carry out
unauthorized constructions, so as to change status of the structure from
being 'ongoing work and unoccupied' to 'completed and occupied'
structure. As on date, approximately 10,000 cases are pending in
various courts with ad-interim/interim orders passed by the Courts, as a
result, the unauthorized structures continue to exist for long periods
and consistent follow up becomes really difficult.
77. We are, thus, of the clear opinion that the MCGM being a Planning
Authority for the entire Greater Mumbai area (excluding those areas in
which by law other planning authorities are appointed), the MCGM has
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jurisdiction to exercise all powers under the MMC Act as also the MRTP
Act and the Slums Act, to take action against illegal structures as permissible
in law, not only in regard to all such areas within its jurisdiction, but also the
slum areas falling under the Slums Act, except when a demolition order has
been made under the Slums Act. We find that even Section 4 of the Slums
Act would cast no embargo on the MCGM to take appropriate action in
regard to any buildings which are unauthorized and/or dilapidated. Per se,
Section 4 does not prohibit the planning authority to exercise any of its
authority in regard to the structures of the nature Section 4 would
contemplate either before the area is declared as a “slum area” or after it is
declared as a “slum area”. It is nobody’s case that prior to an area being
declared as slum, the planning authority namely the MCGM would not
have any authority under the MMC Act and the MRTP Act to take action
against unauthorized construction in such areas in regard to structures in
these areas. From a holistic reading of the provisions of the Slums Act as
discussed above, it is difficult to conceive that merely because an area is
declared to be a slum under Section 4, the planning authority would lose its
control and authority to regulate the structure by implementing the
provisions of the MMC Act and the MRTP Act in the event the structures
are dilapidated and/or in any manner unauthorized.
80. Be that as it may, it is never too late. It is high time that the
concerned officials from the MCGM as also the Collectorate become
conscious and immediately start taking action on illegal structures and
restore a regime of only lawful construction prevailing in the city. In taking
such action, the Municipal Officers ought to overcome any extraneous
pressures and other obstructive considerations which may be created by
certain undesirable elements preventing them from discharging public
duties of taking action against such constructions. The iron hands of the
Municipal Officers cannot be tied down by such pressures and they need to
work relentlessly, as the law would mandate.
84. Illegal encroachments and unauthorized structures are a menace and
a potential danger not only to the city of Mumbai, which is being ruined by
encroachments and illegal constructions, but also to the other bigger cities.
These factors also depict a picture of absolute lawlessness in implementation
of the municipal laws. This for more than one reason. Firstly, as seen from
the State policies, it creates two categories of citizens, the first category is of
those citizens who are law abiding, who would put up lawful construction
and possess buildings/structures which are lawfully constructed thereby
enjoying only the legitimate and permissible benefits therefrom. The second
category is of those persons who brazenly violate law and put up illegal and
unlawful constructions and enjoy with impunity such illegal structures,
under the blessings of municipal and government officers. There is yet
another category of persons, who illegally enter and encroach on public
lands, construct unauthorized structures, they continue to reside in such
structures for long periods with the blessings of all the authorities, and yet
get rewarded under the government policies which offer them a premium
on such illegality of encroachment, in entitling them with a free of cost
accommodation, under the garb of slum redevelopment as made
permissible under the State policies as discussed above. There cannot be a
bigger unconstitutionality and breach of the public trust doctrine in such
mechanism, under which valuable public largess is siphoned off from the
pool of public assets to reward encroachers as also for private benefits.
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102. In the scheme of Constitutional governance, it is not possible for us
to assume that a public official, howsoever high, or mighty or low, can
remain without public accountability to “We the People”. Failure of
accountability and discharge of public duties and responsibilities which the
law would mandate them to discharge, in our opinion, are anathema not
only to the expectations of lawful governance, but would also bring about a
colossal case of derailment of the Constitutional and legal machinery,
resulting into patent societal injustice and a civic regime opposed to the rule
of law. The issues, which we have discussed above, certainly cast a serious
doubt as to whether the above expectations of the rule of law are at all
fulfilled and/or are followed in breach. It is for such reason, when there is a
glaring and an apparent failure on the part of the statutory authorities to
comply their lawful duties and Constitutional expectations, and/or when
there is a dent or a breach in enforcement of the laws, the Courts
unhesitantly are required to step in, so as to correct those who are failing in
the discharge of their lawful duties, of not only to remind them of such
duties and obligations but use the strong arm of law to set the same
enforced and restore the confidence and expectations of the citizens, in the
rule of law. This would also certainly require the Court to strictly deal with
such officials, as the law would mandate the Court to so deal with them.
They ought not to be under any impression that they can evade law with
impunity. The famous quote of Lord Acton that “power corrupts and
absolute power corrupts absolutely” ought to be realized to be untrue and
something of the past, in its applicability in public governance. This, more
particularly, when the aim is to compete with the other countries of the
world where not only the building laws are stringently followed but also the
aesthetics in relation to constructions and building designs are given a great
impetus, so that the cities do not become eye sores of brick and mortar. This
apart, as echoed in every public policy, corruption in municipal governance
should be brought to the books by establishing multiple layers of anti-
corruption mechanism within and outside the organization and achieve
strict application of the provisions of the Prevention of Corruption Act,
1988. This ought to be implemented with immediate urgency by keeping a
vigil on those officers who in the absence of any hurdles are deliberately not
taking actions against illegal and unauthorized constructions. It is only then
that there can be a ray of hope and sunshine for the future generations.
105. On our way towards conclusion, we may note that a chaotic state of
affairs of mushrooming of slums and unauthorized and illegal constructions
in every possible pocket of open land could have been avoided, provided
there was a desire to have a proper vision and an effort to make an effective
plan for mass public housing, which would cater to the housing needs, for a
large percentage of population in a city like Mumbai. It cannot be
overlooked that for a city as large as Mumbai or any other comparable city
in the State, large work force and which may be migrant workforce is
indispensable and perennially required, who cater to the various manpower
requirements the city consumes. However, we find that in contemporary
times, there is not much thought been given by the policy makers to such
vital issues of affordable mass public housing, to be created to accommodate
such large work force either temporarily or permanently. Moreover, the
entire focus is on putting up skyscrapers on slum lands. It cannot be a
situation that people from all parts of the country come to work in urban
areas and there is no alternative to them but to encroach on
government/public lands or private open lands and reside in filthy
surroundings and in illegal structures. Such is the sorry state of affairs. Even
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such persons have a right to live with dignity and in appropriate humane
and pleasant livable surroundings.
106. The policy makers appear to have turned a complete blind eye to
these requirements of legitimate housing for such workforce, without whom
the basic activities in the city would collapse. This is not only the
requirement as would emerge from the constitutional guarantee as
enshrined under Article 21 of the Constitution, but also what the Universal
Declaration of Human Rights (1948) would provide wherein housing rights
are recognized, as a part of economic and socio-cultural rights, which would
guarantee a right to a standard of living adequate for health and well-being
of citizens, and include the right to food, clothing, housing and medical care
along with provisions for necessary social services etc. Further the
International Covenant on Economic, Social and Cultural Rights (ICESCR)
which is ratified by 160 States including our country also includes
recognition of housing rights as a part of the broader right to adequate
living conditions as seen from Article 11(1) thereof.
108. Considering the progressive steps being taken by many other
countries, we feel that our policies also ought not to lag behind, so as to
achieve the goals for creating ideal and slum free cities keeping in mind the
interest of the generations to come. Can we have a myopic vision and forget
that the generations to come would also need playgrounds, open spaces,
gardens, clean and hygiene surroundings. This considering the scenario that
people go on putting constructions and more so, at the behest of vested
interest, wherever there are open lands. There is a need of a fundamental
thinking on these vital issues of planning. A vision on these issues needs
more attention in contemporary planning. If timely attention is not devoted
to such issues, it is quite likely, that for the future years, things would
worsen and may create insurmountable suffering, of every kind, affecting
human lives who live in such cities. Thus, a serious endeavour of the policy
makers, as an emergent need, ought to be, to have well-planned cities which
would cater to every possible facet of human life and not merely to create
unplanned and chaotic towns. Any lack of vision on these issues would be
fatal for times to come.
109. We thus cannot expect citizens to languish in filthy and unhygienic
slums. The right to livelihood includes a right of decent living and not an
animal existence. It would include a right to live with dignity and implicit in
it, is a right to live in decent houses, opposed to filthy living conditions.
This ought to be an issue of prime concern for the State, so to device means
to create mass housing facilities for the poor and for the economically
weaker sections of the society, who are forced to live in slums in bigger cities
so as to earn their livelihood and whose need for the city is perhaps
indispensable. An endeavour ought to be made to bring about an era to
have cities with no slums. If such ideals are achieved, it would be a pride
and glory for the generations to come who would then would be the
beneficiaries of dignified and ideal cities.
114. Erstwhile Bombay, now Mumbai, is home to people coming from
across the country in search of livelihood. This migration has not only
added to the dense population making Mumbai the most populous Indian
city, it has immensely burdened the housing sector so much so that 41.3% of
the population live in slums. Any one taking an aerial view of Mumbai, also
called the city of dreams, would be fascinated by the swanky sky-scrapers
but disheartened by the structures at the foot of such sky-scrapers covered
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mostly by blue tarpaulin covers. These are the densely populated single
storey or double storied slums accommodating almost a half of the
population, which co-exist as neighbours with real estate developments of
extravagance. Despite these pronounced inequalities, people here seem to
have accepted that this is the way life should go on. Mumbai happens to be
the financial capital of this great nation and the extent of developments that
one can see having taken place in Maharashtra, are significant. The annual
budget of the Municipal Corporation of Greater Mumbai is more than
several midsized States of India. It is, therefore, not unreasonable to assume
that sufficient financial resources are at its disposal, and one would have
expected the Government and the Corporation, whoever was at their helm,
to adequately plan development by making appropriate budgetary
provisions for affordable housing projects for the not so fortunate working
class of people living in slums. Regrettably, instead of moving in the
direction to have a planned and sustainable development, the successive
Governments together with the Corporation seem to have unabashedly
allowed mushrooming of slums at the instance of squatters by encouraging
them not only to encroach more and more of public property but,
simultaneously, by enacting laws to protect such unauthorized occupation.
Enacting laws to further the interests of the weaker sections of the society is
the obligation of every State in terms of Part IV of the Constitution and any
move in that behalf ought to and must be welcomed. People living in slums
do equally have a right of decent living conditions, which can be ensured by
relocating them with proper housing facilities. However, a vicious nexus
involving high profile personalities, bureaucrats, builders and slum lords
have created a situation where public property is first encroached without
resistance being provided by the law enforcing agency, followed by a
declaration of slum gradually progressing to redevelopment by builders
ostensibly for slum dwellers but really to further the interests of the “haves”.
In the garb of legislation, in a novel manner, a fraction of the population
including holders of public offices have continued to prosper by achieving
their goals through impure means which are nothing short of betrayal of the
trust that the people of this region have reposed in those responsible for an
able governance. While it was the need of the hour to make housing
projects a reality more effectively and with empathy, what has been laid bare
is the apathy and indifference to cater to the needs of the hapless coupled
with a complete lack of sensitivity. The reasons are not far to seek. Quite
contrary to the ideals and values embodied in the Constitution which lay
down the basic framework of the social and political structure of the
country and sets out the objectives and goals to be pursued by the people in
a common endeavor to secure happiness and welfare of every member of
the society and despite taking oath to uphold the laws, actions of those in
power and authority are now invariably driven by political motivations or
other oblique considerations. No wonder, the casualty is the compassionate
Constitution of ours.”
(“emphasis supplied”)
9
22. In Moinuddin Pashamiya Shaikh Vs. Slum Rehabilitation Authority , the
Court undertook a detailed examination of the structural failures in the SRA

9 2023 SCC OnLine Bom 2933
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system. It was observed that encroachments on public/government lands are
widespread and undeniable. Over decades, unauthorized encroachments have
proliferated, and the assumption that every slum dweller is impoverished lacks
basis. In law, all slum structures are unauthorized; even an authorized structure
doesn’t become a “slum” merely because slum-like conditions surround it. Mixed
settlements of authorized and unauthorized structures on one plot have created
complex legal issues. Slums involve serious social, planning, engineering, and
political problems; many people migrate to cities in search of livelihood, resulting
in unplanned “informal settlements.” The Slum Act provides the procedure for
slum redevelopment: slum identification, notification, survey, LOI to the
developer, Annexure II eligibility, and provision of free rehab units with transit
rent. Developers receive free-sale FSI as consideration; rehab construction
triggers phased rights to build free-sale units. Three systemic failures were
identified - (i) rehab tenements are the core of redevelopment; (ii) these are
provided free of cost to slum dwellers, creating high-value assets at public cost;
(iii) there is no robust system to verify eligibility or prevent fraudulent claims;
biometric verification started only recently. The combination of free housing, no
monitoring, and lack of verification forms a “trifecta” at the heart of today’s
redevelopment crisis. Despite promises, slums have not reduced; they continue to
expand, and conditions remain harsh. The Court reaffirmed the earlier rulings
that the right to life includes the right to shelter, but there is no fundamental
right to trespass, squat, or claim rehabilitation based on trespass. No
constitutional principle gives a squatter a right to obtain a marketable asset free of
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cost. Public land is diverted to provide high-value real estate to encroachers while
lawful home buyers pay mortgages for decades, creating deep injustice. Policies
effectively reward illegal encroachment by guaranteeing free in-situ tenements at
enormous public cost. Courts cannot ignore the injustice faced by honest citizens
who lawfully purchase homes while encroachers receive free units. Evidence now
shows large-scale trafficking and illicit dealing in free rehab units because they are
high-value assets. The issue of whether redevelopment must always be in situ
involves other complex considerations such as eviction, relocation, infrastructure,
and transport which are beyond the Court's present scope. What is clear is the
reaffirmation that State largesse cannot constitutionally be distributed to
regularize trespass or reward unlawful occupation.
23. In Sayunkta Sangarsh Samiti and Another Vs. State of Maharashtra and
10
Ors. , the Supreme Court analyzed the public law character of SRA schemes and
the statutory obligations of authorities. It was observed that the slums in
Mumbai reflect deep social and economic inequalities, driven largely by the
migration of rural and marginalized populations seeking employment. Migrants,
unable to afford formal housing, create informal settlements, which later become
slums with extremely poor hygiene and temporary structures. Mumbai has the
highest number of slum dwellers in India, which is nearly about 42% of its
population (2011 census) and this is due to historic neglect of housing needs,
dating back to colonial times.
10 2023 SCC OnLine SC 1684
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23.1 Past public bodies such as BIT (1898) and BDD (1920) attempted low-
cost housing but could not meet the massive demand. Post-independence, slum
policy shifted from demolition to welfare-oriented redevelopment, culminating
in the Slum Act, 1971, which aims at improvement, protection from eviction, and
redevelopment. The 1971 Act created the Slum Rehabilitation Authority (SRA)
to plan and implement redevelopment schemes and ensure benefits for slum
dwellers. SRA Schemes have a clear public law character, as the land involved is
public or belongs to public authorities, and redevelopment must serve statutory
welfare purposes. Private agreements cannot override SRA’s statutory mandate;
redevelopment must conform strictly to the Slum Act and Development Control
Regulations. The Municipal Corporation has a central role in – (i) certifying
eligible occupants; (ii) verifying genuine slum dwellers; (iii) ensuring public land
is used solely for public welfare. The purpose of the Slum Act is rehabilitation,
“not the commercial exploitation of public land”; hence, State authorities must
regulate every stage of the scheme, namely, the submission and evaluation of
proposals, scrutiny, sanction, and implementation. Although disputes between a
slum society and a developer have a private element, private remedies are not
exclusive, because the SRA has overriding statutory authority to enforce the
public purpose. The State and the SRA must ensure that schemes are not
misused, that the public purpose is upheld, and that rehabilitation does not
become subordinated to private contractual interests.
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11
24. In Bishop John Rodrigues Vs. State of Maharashtra , a Division Bench of
this Court examined compulsory acquisition of private land under the Slum Act
and observed that the land in question was a small private plot of 1596.40 sq.m.
with only 35 slum structures, owned by a Trust. The landowner consistently
showed readiness and willingness to redevelop the slum structures by providing
permanent alternate accommodation. Even a composite proposal covering both
the Trust’s larger land and the slum-occupied portion was legally permissible, and
there was no legal bar on the petitioner undertaking redevelopment. If
redevelopment by the petitioner became impossible due to reasons beyond the
landowner's control, compulsory acquisition under Section 14 of the Slum Act
could not be forced on the petitioner. Forcing compulsory acquisition without
giving the landowner a fair opportunity to redevelop would be arbitrary, illegal,
and violative of Article 300A (Right to Property).
24.1 Encroachment removal in Mumbai is a near-impossible task, with
encroachments often supported by slumlords, politicians, and criminal elements,
making protection of private land extremely difficult. Private owners regularly
struggle to safeguard their land, while developers with resources often misuse
slum redevelopment as a tool to capture valuable private property. Declaring
private land as a slum under the Act starts a nightmarish process, effectively
depriving the owner of normal ownership rights and exposing them to unjust
acquisition pressures. Many schemes are, in reality, developer-driven, where
developers form or control the so-called “slum society” to push proposals for FSI
11 2024 SCC OnLine Bom 1632
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benefits. It is unacceptable that a willing landowner knocking at SRA’s doors for
redevelopment is instead issued a Section 14(1) notice of compulsory acquisition.
24.2 Before acquiring land, there must be insurmountable material on record
showing that redevelopment by the landowner is impossible; only then can
compulsory acquisition be justified. Authorities have an onerous duty to act
fairly, objectively, and not privatize the process in favour of encroachers or
developers under the guise of rehabilitation. Chapter I-A does not intend that
once land is declared a slum and a cooperative slum society is formed, the owner
gets no opportunity to redevelop. Section 13(1)’s requirement of giving 120 days’
notice to landowners must be strictly followed before any decision to
compulsorily acquire is taken. The law requires giving the landowner a
meaningful opportunity to propose a rehabilitation scheme; failure to do so
would violate Article 300A. The Court, in dealing with the acquisition of the
private land under Section 14 of the Slum Act in the absence of the right of the
owners being recognized in regard to the preferential redevelopment of the slum,
has made the following observations:
“ 99. The SRA and whosoever is concerned in regard to the slum
redevelopment need to be conscious of the ground realities namely that it is
an herculean task in a city like Mumbai to remove any encroachment on
private and public land. It is equally difficult for a private owner of the land
to safeguard its land and prevent encroachment. This is the sad story, as
encroachment does not happen by such encroachers simplicitor squatting
on the land, invariably the encroachment is backed inter alia by slumlords,
criminals, social workers, politicians (as the squatters would be vote banks).
For a bonafide landlord, it is impossible to fight with such forces and, keep
litigating on removal of encroachment. Thus, to achieve removal of the
encroachment, is seen to be impossible for the landlords and for public
bodies like State Government and Municipal Corporation as also the
Airport Authority, as major public lands in the City of Mumbai have
vanished from the public pool and are subjected to private development by
developers under the garb of slum re-development, as the rulings of this
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Court on several such issues would remind us of these woeful realities. In
these circumstances, persons like the developers who are interested in
commercial exploitation of any land under the slums may it be private or
public, who are backed by other powerful forces and many times also by the
government machinery, initiate proceedings under the Slum Rehabilitation
Act for declaring private land as a slum. The moment such a declaration
takes place, a nightmare and one of the most difficult journeys any citizen
who owns land, commences namely to pursue litigation on such a
declaration. It is hence as good as a preliminary capital punishment in so far
as the ownership rights qua the private land are concerned. The way
forward is just to be imagined. This being the case immediately developers
who keep track on such development potential purportedly at the behest of
the slum society come forward on a purported appointment by a slum
society. In reality it is seen that it is the developer who actually forms the
slum society. He is the one who is taking steps to enter into a development
agreement with the society and the slum dwellers and put up a proposal
before the SRA through his architect, everything in the name of the slum
society. This for the reason that there is a bonanza of FSI of a free sale
component available to be developed by the developer (The question is why
should the developers have such bonanza on a land of somebody's
ownership or of a private ownership. Thereafter, the SRA purporting to
exercise some pious obligation would, under a label of social sympathy and
purportedly to forward the object of the Slum Act, commence a process to
permit development at the hands of such developer and in a given situation,
start proceedings to acquire the land. To say the least, we can certainly take a
judicial notice that this has been a sad reality, replete on this branch of slum
jurisprudence, as majority of these cases are asserted by the developers with
resources and legal ammunition they could have.
101. In these circumstances, when valuable private rights as guaranteed
under Article 300A of the Constitution to an owner of the land are being
deprived under the garb of slum rehabilitation, there has to be an
insurmountable situation on record of the SRA or for any reasonable body
of persons to come to an unimpeachable conclusion that the only and only
remedy and/or avenue in a given case is to acquire the private land and not
permit the owner of the land to undertake the development. The CEOSRA
has an onerous obligation to reasonably, non-arbitrarily, and objectively deal
with the valuable property rights of private citizens who are dragged in such
situation that the monsters of encroachment and persons supporting them
take the rule of law in their hands in depriving the land owner of his right
to property. They forget that there is a rule of law and there are Courts and
any such attempt to dent the rule of law can be dealt with iron hands. We
may also add that if the official machinery was to act as per law, today we
would not have been confronted with the situation of an international city
like Mumbai being also known for its slums on private and public lands
[See the observation of the Court in High Court on its own motion (In the
matter of) Jilani Building at Bhiwandi v. Bhiwandi Nizampur Municipal
Corporation).”
(“emphasis supplied”)
25. The decision of this Court in Indian Cork Mills Private Ltd. (supra) was
upheld by the Supreme Court in subsequent decisions in Tarabai Nagar
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12
Cooperative Housing Society Vs. State of Maharashtra and Saldanha Real Estate
13
Pvt. Ltd Vs. Bishop John Rodrigues and Ors. . In Saldanha Real Estate Pvt. Ltd.
(supra), it was observed that the SRA and its CEO failed in their public duty,
acting with bias to undermine the landowner’s rights and favour a private builder
(Saldanha). The Supreme Court found collusion, connivance, and misuse of
authority, revealing a deliberate attempt to bypass statutory protections and hand
over the land for private benefit. It was observed that Saldanha’s influence over
the SRA appeared so strong that the developer could push the project even
during the COVID-19 lockdown, when public administration was otherwise
paralysed. The Slum Act protects slum dwellers, but offers no explicit statutory
protection to landowners; this gap creates a vacuum that opportunistic developers
exploit. Developers manipulate slum dwellers and work “hand-in-glove” with
authorities to illegally dispossess landowners and enrich themselves. The
Supreme Court held that the acquisition proceedings, tainted by a colourable
exercise of power, could not be allowed to continue. The High Court was correct
in stopping the acquisition early, thereby protecting the statutory rights of the
Church / Trust and preventing an illegal land grab by the developer. In the said
decision, the Supreme Court made the following observations:
“49. Throughout this case, the SRA and its CEO appear to have
abandoned their public duty to uphold the Rule of Law and protect the
rights of the landowner. On the contrary, the facts reveal a prejudiced
attempt by the SRA to undermine legislative and judicial efforts and hand
over the Subject Land and the benefits of its rehabilitation to Saldanha.
Such actions of a public authority, marred by collusion and connivance and
motivated by extraneous profit interests of private builders, are highly
depreciable and underline the possibility of bureaucratic misuse of statutory
12 2025 INSC 1015
13 2025 SCC OnLine SC 1794
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provisions.
50. The facts of the instant case compel us to infer that Saldanha's
overreaching influence went beyond the slum-dwellers' proposed society. In
its attempt to take over the Subject Land, the developer appears to have
gotten the typically slow-moving bureaucratic wheels of the SRA to run at
full speed. Moreover, Saldanha was able to achieve this manoeuvre at a time
when the entire country was under lockdown and the machinery of
governance was overwhelmed by the unprecedented challenges of the
COVID-19 pandemic.
51. These circumstances underpin the need for practical and actionable
safeguards in a legal system involving competing interests among private
parties. The Slums Act, while providing wholesome protection to slum
dwellers and their homes and livelihood, does not give such express
protection to the interests of the owner of the land. The ensuing vacuum, as
we have seen in these appeals, allows opportunistic developers to swoop in,
exploit the circumstances of the poor slum dwellers, manipulate the hand-
in-glove authorities, and enrich themselves off the helpless owner's land.
52. Keeping the facts of this case and the obviously colourable conduct
of the Appellants in mind, the acquisition proceedings cannot be allowed to
sustain. As such, the High Court has rightly nipped these proceedings in the
bud, protecting the statutory rights and interests of the Church Trust over
the Subject Land and preventing the Appellants from illegally grabbing it.”
(“emphasis supplied”)
26. A Nine Judge Constitution Bench of the Supreme Court in the case of
14
Property Owners Association and Others Vs. State of Maharashtra and Others ,
was dealing with a reference raising significant questions about the applicability
of Articles 39(b) and 31(c) of the Constitution. The issue arose from a decision of
the Division Bench of this Court which upheld the Constitutionality of the
provisions of Chapter VIIIA of the The Maharashtra Housing and Area
Development Act, 1976. The High Court had held that the said provisions of the
Chapter VIIIA were saved by the Article 31C, as they were enacted to give effect
to the principles laid down in Article 39(b). The High Court held that the same
principles applied to Chapter VIII-A as well while holding that the provisions of
the said Chapter did not violate Article 14 of the Constitution. In view of the
14 . (2024 SCC OnLine SC 3122)
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importance of the issues involved, a reference was made for the matter to be
placed before a Nine-Judge Bench, as set out in paragraph 16 of the reference
order. Although the scope of the reference pertained specifically to the
interpretation of Article 39(b), and not to the continued validity or survival of
Article 31C, it was contended by the parties that the determination should be
confined to Article 39(b) and more particularly, only to the question of whether
“material resources of the community” include privately owned resources. The
observations made by the Supreme Court as relied upon by Mr. Khambata
learned Amicus require to be noted –
“257. An interpretation of Article 39(b) which places all private property
within the net the phrase "material resources of the community" only
satisfies one of the three requirements of the phrase, i.e. that the goods in
question must be a 'resource'. However, it ignores the qualifiers that they
must be "material" and "of the community". The use of the words
"material" and "community" are not meaningless superfluities. We cannot
adopt a construction of the provision which renders these terms otiose. The
words "of the community" must be understood as distinct from the
"individual". If Article 39(b) was meant to include all resources owned by
an individual, it would state the "ownership and control of resources is so
distributed as best to subserve the common good". Similarly, if the provision
were to exclude privately owned resources, it would state"ownership and
control of resources of the state..." instead of its current phrasing. The use of
the word "of the community" rather than "of the state" indicates a specific
intention to include some privately owned resources.
258. In essence, the text of the provision indicates that not all privately
owned resources fall within the ambit of the phrase. However, privately
owned resources are not excluded as a class and some private resources may
be covered. The resource in question must meet the two qualifiers, i.e. it
must be a "material" resources and it must be "of the community". Thus,
the judgments doubted in the reference before us are incorrect to the extent
that they hold that "all resources" of an individual are part of the
community and thus, all private property is covered by the phrase "material
resources of the community".
263. The right to property was included in the Constitution as a
fundamental right under Articles 19(1)(f) and Article 31. Subsequently, the
right to property was deleted from Part, Ill of the Constitution by the
Constitution (Forty-fourth Amendment) Act, 1978. However, a modified
version was inserted and the right to property continues to be
constitutionally protected under Article 300A. Although no longer in the
nature of a fundamental right, the provision has been characterised as a
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constitutional and human right.
264. A two-Judge Bench of this Court in Kolkata Municipal Corporation
& v. Bimal Kumar Shah, speaking through Justice PS Narasimha, had
occasion to discuss the scope and content of Article 300-A and the
constitutional vision in relation to private property. This Court held that
merely providing compensation does not justify compulsory acquisition by
the state unless procedural safeguards are followed. It was observed that a
"post-colonial reading" of the constitutional right to property cannot be
limited to the twin conditions of (a) the acquisition being for a public
purpose; and (b) payment of compensation, and must give way to morel
meaningful renditions This Court observed:
"28. While it is true that after the 44th Constitutional
Amendment, the right to property drifted from Part III to
Part XII of the Constitution, there continues to be a potent
safety net against arbitrary acquisitions, hasty decision-
making and unfair redressal mechanisms. [...] To assume that
constitutional protection gets constricted to the mandate of a
fair compensation would be a disingenuous reading of the
text and, shall we say, offensive to the egalitarian spirit of the
Constitution.
29. The constitutional discourse on compulsory acquisitions,
has hitherto, rooted itself within the 'power of eminent
domain'. Even within that articulation, the twin conditions
of the acquisition being for a public purpose and subjecting
the divestiture to the payment of compensation in lieu of
acquisition were mandated. [...]
A post-colonial reading of the Constitution cannot limit
itself to these components alone. The binary reading of the
constitutional right to property must give way to more
meaningful renditions, where the larger right to property is
seen as comprising intersecting sub-rights, each with a
distinct character but interconnected to constitute the whole.
These sub-rights weave themselves into each other, and as a
consequence, State action or the legislation that results in the
deprivation of private property must be measured against
this constitutional net as a whole, and not just one or many
of its strands".
265. The right to property under Article 300-A, this Court observed,
may be seen as comprising of the following sub-rights which ensure that the
procedure followed is just, fair and reasonable:
"27. [...] i) duty of the State to inform the person that it
intends to acquire his property - the right to notice, ii) the
duty of the State to hear objections to the acquisition - the
right to be heard, ill) the duty of the State to inform the
person fits decision to acquire - the right to a reasoned
decision, iv) the duty of the State to demonstrate that the
acquisition is for public purpose - the duty to acquire only
for public purpose, v) the duty of the State to restitute and
rehabilitate - the right of restitution or fair compensation, vi)
the duty of the State to conduct the process of acquisition
efficiently and within prescribed timelines of the proceedings
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- the right to an efficient and expeditious process, and vii)
final conclusion of the proceedings leading to vesting - the
right of conclusion."
(“emphasis supplied”)
27. I n Mujibur Rehman Chaudhary Vs. Municipal Corporation for Greater
15
Mumbai , the issue for consideration before this Court was whether an
unauthorized vertical extension, namely, the construction of a Mezzanine/first
floor to the existing structure of the appellant used as hotel (which itself was
unauthorized), can receive a protection from an action of its removal by the
municipal corporation, merely because the structure is situated in a notified slum.
In rejecting the appeal and by not recognizing any protection, the Court has
made the following observations:
“31. It also needs to be stated that a photo-pass cannot be accepted to be
a carta blanca or a blanket licence to put up an unauthorised, illegal
construction. It is certainly within the jurisdiction and powers of the
MCGM to take action against the structure, if any structure is put up
illegally. If unauthorized and uncontrolled illegal constructions are
permitted in slum areas, the ghastly consequences are not too far to be seen.
In such context, the Division Bench of this Court in Jilani Building’s Case
(b) (supra) considering the provisions of Chapter I-B of the Slums Act has
held that the protection which has been conferred by Section 3Z of the
Slums Act to the protected occupiers, cannot be confused or interpreted to
mean that the protected occupier enjoys and can be granted a complete
immunity from putting up unauthorized construction or structure and/or
can make illegal additions or alterations.
…...
34. In the absence of specific provisions under the Slums Act for
inclusion of commercial premises being recognized in the photo-pass under
the provisions of the Slums Act, it would be difficult to accept that the
Slums Act would recognize a commercial structure, in respect of which
under the Slums Act a photo-pass can be issued. Moreover, the definition of
‘dwelling structure’ as defined under Section 3X(a) of the Slums Act, as
rightly contended by Mr. Jagtiani, in my opinion, would be required to be
interpreted in the context of the object, the Slums Act intends to achieve.
The said definition reads thus:-
“3X. Definitions: In this Chapter, unless the context
otherwise requires:- (a) "dwelling structure" means a
structure used as a dwelling or otherwise and includes an
15 . 2023 SCC OnLine Bom 579
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out-house, shed, hut or other enclosure or structure, whether
of bricks, masonry, wood, mud, metal or any other material
whatsoever;”
35. When the words ‘dwelling or otherwise’ are used in the definition of
a “dwelling structure”, and when the definition provides to include outhouse,
shed, hut or other enclosure or structure, necessarily in my opinion, it would
not include commercial premises which do not fit into any of the ingredients
of such provision namely a structure used for dwelling or outhouse, shed,
hut, as used in the said provision. In such context Mr. Jagatiani’s reliance on
the decision in Ramesh Appa Rao (supra) which has considered the
Government policy under the Government Resolution dated 16 May 1996
that the commercial structure is not protected, would be apposite, however,
subject to caveat that the subsequent Government Policies have deviated
from the Government Resolution dated 16 May 1996 so as to grant
protection to commercial structures.”
(“emphasis supplied”)
28. I n Priya Construction Company Vs. The Slum Rehabilitation Authority &
16
Ors , the Division Bench of this Court referring to Shree Sai Pawan SRA Chs Ltd
17
Vs. CEO SRA & Ors , the SRA made the following observations :-
“4. This is not an isolated pronouncement. In any case, it has not been
disturbed. It is a finding on a principle of law by a bench of coordinate
strength; and it is therefore a binding precedent. On 27th February 2023,
in (OS) Writ Petition No 9291 of 2022, Shree Sai Pawan SRA Chs Ltd v
CEO SRA & Ors, and connected matters, we said:
4. The reason is self-evident and we have repeated it again and
again in series of judgments and orders. The fundamental
point is this: This city is not for developers. The Slum
Rehabilitation Act 1995 (“SRA”) is not for developers. The Act
is intended to serve a public welfare purpose. Developers are a
means to that end. They are entitled to a free sale component
provided by the incentive Floor Space Index (“FSI”) but this is
a consideration for their fulfilling their obligations under the
contract (for there is always a development agreement) and
under law, in the form of Letter of Intent issued by the Slum
Rehabilitation Authority. Those obligations include not only
the rebuilding or building of rehabilitation structures and
tenements both commercial and residential, but also the
payment of transit rent in the meantime or the providing of
habitable transit accommodation. A developer who does not
pay transit rent, does not provide habitable transit
accommodation or otherwise is in default of his obligations, all
of which have to be performed on a schedule and within a time
frame, is not entitled to any of the benefits of the slum
rehabilitation project, i.e., the free sale component. This is the
overall architecture of the Maharashtra Slum Areas
16 . 2023 SCC OnLine Bom 3202
17 . 2023 SCC OnLine Bom 2964
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(Improvement, Clearance and Redevelopment) Act, 1971. As
regards slum dwellers, only those who are found to be eligible
are entitled to these benefits.
5. But this means that where there is a demonstrated default by
the developers or by the co developers, then the privileges and
entitlements are liable to be taken away for there is a complete
failure of consideration. A party in default cannot be allowed
to take advantage of its own wrong and failure. That would be
profiteering and that too at public expense because many of
these slum projects are on public lands — such as this one —
and the developer is not being made to pay the cost of land.
6. Or, to put it differently, the developer can always be
changed. The beneficiaries of a SRA project cannot.
(Emphasis added)

5. This is equally true of re-development of tenanted/cessed structures, and
in every case where a re-development of home for existing occupiers or
tenants are involved.
6. Thus, under SRA law, the obligations of the developer in whose name the
Letter of Intent or LoI is issued are, inter alia, payment of transit rent and
the construction of rehab homes for those entitled to rehabilitation
according to sanctioned specifications. If these obligations are not met, then,
as a matter of law, there is a failure of consideration and there is no right to
any free sale unit. The sequencing is clear. The rights of the Developer
recognised by SRA to free sale units are contingent and dependent on the
performance by that Developer of obligations to the Society. If that LoI-
holding Developer fails to perform the obligations, then no rights accrue to
it.”
(“emphasis supplied”)
29. In Yash Developers (supra) the Supreme Court considering the large
amount of cases being filed under the Slum Act as noticed from the National
Judicial Data Grid (NJDG), it was observed that the Slum Act is a beneficial
legislation, intended to materialize the Constitutional assurance of dignity of the
individual by providing basic housing, so integral to human life. However, the
propensity and proclivity of the statute to generate litigation were observed to be
worrisome. The Supreme Court observed that there seems to be a problem with
the statutory framework for realizing the purpose and object of the statute. The
relevant observations as made by the Court are required to be noted which read
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thus:-
“ 51. Though we have disposed of this civil appeal by dismissing it, we
must record that this case has provoked us to reflect on the working of this
Act.
52. The Act came into being in 1971 and since then, for over five
decades, the High Court has been exercising judicial review jurisdiction,
disposing of writ petitions raising claims or challenges to the exercise of
powers or dereliction of duties by authorities under the Act. Data fetched
from National Judicial Data Grid (NJDG) reveals that a total of 1612 cases
involving disputes arising under the Act are pending before the Bombay
High Court. Of these, 135 cases are more than 10 years old. In the last 20
years, 4488 cases have been filed and disposed of under the said Act.
53. Latest data from the Bombay High Court reveals that about 923
cases on the Appellate Side and 738 on the Original Side are pending
adjudication. The Act is a beneficial legislation, intended to materialise the
constitutional assurance of dignity of the individual by providing basic
housing, so integral to human life. However, the propensity and the
proclivity of the statute to generate litigation are worrisome. There seems to
be a problem with the statutory framework for realising the purpose and
object of the statute.
54. In Galaxy Enterprises v. State of Maharashtra [ Galaxy Enterprises v.
State of Maharashtra , 2019 SCC OnLine Bom 897] the Bombay High
Court has remarked that : (SCC OnLine Bom para 3)
“ 3 . … Nonetheless, considering the volumes of disputes still
reaching the Courts, it can certainly be said that time is ripe, if
not too late, to ponder, whether things are realistically working
in the right direction, to eradicate slums and rehabilitate the
slum dwellers, with the desired efficacy and expedition. This not
only at the hands of the authorities but also at the hands of the
other stakeholders. The vital issue which has often led to
controversy and disputes, is on the rules permitting, the selection
and appointment of developers to undertake a slum
rehabilitation scheme, being conferred on the slum dwellers,
who are hardly expected to know the nitty-gritty of the slum
redevelopment schemes. It is seen that the so-called leaders of
the slum dwellers who are themselves in need to be rehabilitated,
are often lured by developers and their agents, and once a
developer is appointed, what normally prevails is a constant fear
of incertitude and scepticism amongst the slum dwellers, leading
to disputes on variety of issues affecting their final rehabilitation.
Such issues not only frustrate the very object of a speedy slum
redevelopment but completely derail the slum schemes. It can be
seen that scores of slum schemes have remained incomplete for
years together and are languishing on such issues, either in
litigation before courts and/or before the authorities. These
schemes need not face such ordeal, including of an unending
litigation. To change the developer is no answer as even this
process involves dispute resolution and ultimately lengthy
litigation from one forum to another.”
55. Further, referring to the statutory scheme, as per which
development is possible only when the slum dwellers feel the need and seek
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development, the High Court pointed out yet another problem about the
statutory framework in the following terms : ( Galaxy Enterprises case
[ Galaxy Enterprises v. State of Maharashtra , 2019 SCC OnLine Bom 897] ,
SCC OnLine Bom para 5)
“ 5 . … It cannot be countenanced that the slums be redeveloped
only when the slum dwellers feel the need of a redevelopment
and the Government Authorities cannot initiate redevelopment
and cannot initiate a suo motu action in that behalf. It is hence,
for the Government and the Slum Authority to give its anxious
consideration to these issues and in its wisdom to devise a
substantial, nay a foolproof mechanism, by undertaking a study
and identify these grey areas, so that the helping hand as
extended by the legislature in providing this beneficial law as far
back in 1971 that is almost 50 years back is held strongly and
firmly by all concerned. It is never too late.”
56. The exasperation of the High Court about working of the Act is
understandable. The present appeal is a classic example of why the High
Court's concern is genuine. It has been noticed that the statutory scheme is
problematic with respect to:
56.1. Identification and declaration of land as a slum. This problem
involves an examination of the role of authorities in giving such recognition,
insidious intervention of builders in the said process cast doubts on the
independence and integrity in the decision-making process;
56.2. Identification of slum dwellers : This involves a complicated process
of proof of such a status, the attendant problem of groupism, giving rise to
competing claims inevitably leading to litigation;
56.3. Selection of a developer : The Act leaves this decision to the
cooperative society of slum dwellers and the majority decision is
manipulated by competing and rival developers;
56.4. Apportionment of the slum land between redevelopment area and
sale area : This is yet another area where court has witnessed developers
seeking to increase the proportion of the sale area, leading to contestation;
56.5. Obligation to provide transit accommodation for the slum dwellers
pending redevelopment : Invariably, we see instances where the developer
does not provide transit accommodation within time or provides an
inadequate alternative in the form of a quantified amount towards rent. On
the other hand, there are instances where some slum dwellers refuse to
vacate the premises on the ground that the transit accommodation is either
inconvenient or the amount offered is insufficient;
56.6. There are also issues of lack of independence and objectivity in the
functioning of statutory authorities : This is a matter of serious concern.
Courts have witnesses that the authorities have no independence and, their
tenure is also short. Additionally, the functioning of these statutory
authorities gives an indication that there could be a regulatory capture;
56.7. Another concern which exists is about the effectiveness of statutory
remedies : Statutory remedies are ineffective and at the same time, lacking
in accountability; and
56.8. Judicial review proceedings under Article 226 cannot be a long-
term solution : We have given details of the number of writ petitions
pending before the High Court in paras 52 to 54 .
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57. The abovereferred problems arising out of the statutory scheme and
policy framework should have come under review by the State of
Maharashtra. Assessment of the working of the statute to realise if its
purpose and objective is achieved or not is the implied duty of the executive
government. Reviewing and assessing the implementation of a statute is an
integral part of Rule of Law. It is in recognition of this obligation of the
executive government that the constitutional courts have directed
Governments to carry performance audit of statutes.
……….
64. A peculiar feature of how our legislative system works is that an
overwhelming majority of legislations are introduced and carried through
by the Government, with very few private member bills being introduced
and debated. In such circumstances, the judicial role does encompass, in this
Court's understanding, the power, nay the duty to direct the executive
branch to review the working of statutes and audit the statutory impact. It is
not possible to exhaustively enlist the circumstances and standards that will
trigger such a judicial direction. One can only state that this direction must
be predicated on a finding that the statute has through demonstrable
judicial data or other cogent material failed to ameliorate the conditions of
the beneficiaries. The courts will also do well, to arrive the very least, at a
prima facie finding that much statutory schemes and procedures are
gridlocked in bureaucratic or judicial quagmires that impede or delay
statutory objectives. This facilitative role the judiciary compels audit of the
legislation, promote debate and discussion but does not and cannot compel
legislative reforms.
65. In light of the foregoing, considering that the Act is a State
legislation, implementation of which lies with the State of Maharashtra, and
till date no comprehensive statutory audit has been undertaken, we request
the learned Chief Justice of the Bombay High Court to constitute a Bench
to initiate suo motu proceedings for reviewing the working of the statute to
identify the cause of the problems indicated in para 56. The Bench
concerned will hear the Government, the statutory authorities, the
necessary stakeholders including intended beneficiaries and perhaps take
the assistance of some senior members of the Bar specialising in this area as
Amici Curiae. We leave it to the High Court to devise such methods as it
deems fit and appropriate.
66. Having examined the matter, the Bench may consider directing the
Government to constitute a committee for performance audit of the Act.
The court's jurisdiction extends only to that extent, and no further. The law-
making, including amendments, is the exclusive domain of the legislature.”
C. The Present Proceedings:
30. On the aforesaid orders of the Supreme Court, the present Bench was
constituted. The first hearing of the present proceedings was held on 16 August
2024, when, after broadly discussing the issues, the Court appointed Mr. Darius
Khambata and Mr. Sharan Jagtiani, learned senior advocates, as also Ms. Naira
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Jeejeebhoy, advocate, as the Amici Curiae . By a further order dated 20
September 2024, we also appointed a nodal advocate, Mr. Samit Shukla, to
coordinate in respect of the pleadings to be filed by all stakeholders. By
subsequent orders, all the stakeholders were permitted to file their respective
applications/affidavits to place before the Court their perspectives on the issues.
Although, the members of this Bench were sitting in different assignments, we
heard the respective counsel extensively various dates of the listing of the present
proceedings.
D. SUBMISSIONS:-
Submissions on behalf of Simpreet Singh, Hussain Indorewala, Ghar Haqq
Sangharsh Samiti, Ms. Medha Patkar and Ms. Amita Bhide, Dean, School of
Habitat Studies, Tata Institute of Social Sciences (TISS): (Ms. Gayatri Singh,
learned senior counsel)
31. M s. Gayatri Singh on behalf of these parties has made extensive
submissions. She has divided her submissions into two parts.
32. Firstly, Ms. Singh would focus on the issue of Identification and
Declaration of Slum Lands, Identification of Slum Dwellers, Transit
Accommodation for Project Affected Persons (“PAPs”) being the core issues as
identified by the Supreme Court in Yash Developers (supra). Ms. Singh would, in
the first part of her submissions, refers to various International Treaties and
Conventions. She has also referred to case studies from Countries like South
Africa and the United Nations. She has made detailed submissions on ‘Right to
Life’ being a fundamental right guaranteed under Article 21 of the Constitution,
as also the positive role of the State to provide affordable housing.
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33. Ms. Singh has also relied on the decision of the Delhi High Court in
18
Sudama Singh vs. Government of Delhi , to highlight the deprivation of Human
Rights caused by forced eviction, which must be carried out after following due
process of law. She would also refer to the decision in Ajay Maken vs. Union of
19
India where the Delhi High Court referring to the decision of Sudama Singh
(supra) held that forced eviction of settlement dwellers is illegal if carried out
without due compliance with the principles of natural justice to include adequate
notice and the duty of the State to ensure adequate rehabilitation plans are in
place.
34. Ms. Singh on the second leg of her contentions encompassing some of the
core issues as identified by the Supreme Court in Yash Developers (supra), has
also relied upon the affidavits submitted by the aforementioned slum dwellers,
which are placed on record before this Court. Her submissions are summarized as
under:-
Issue No.I :- Identification and Declaration of Land as Slum Land.
(a) In this context, she would refer to paragraph 33 of the decision of the
Supreme Court in Yash Developers (Supra) read with the Slum Act, which
envisages different levels of state intervention. This would include declaration of
slum areas; protection of occupiers from eviction; improvement of work in slum
areas; land acquisition and Slum Redevelopment.

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(b) Despite efforts, only a fraction of the housing required for the slum
population has been constructed with over 12 lakh units needed, but fewer than
3 lakh units constructed in the past 25 years. Despite the initial intention of the
SRA to rehabilitate 800,000 families, progress has been slow as data from the
SRA indicates that only a fraction of families have been rehabilitated under the
scheme, reflecting a significant gap between the need and the actual rehabilitation
outcome.
Ms. Singh has made the following suggestions:-
(i) As stipulated under Section 4 of the Slum Act, all the declared
“Slum Areas” must be considered collectively irrespective whether
they are or they are not a part of the slum rehabilitation scheme.
Such declared ‘Slum Areas’ must be considered and reserved
exclusively for low-income housing.
(ii) Non-declaration of slum land blocks improvement of living
conditions, as no action can be taken until the redevelopment is
approved. In areas like Govandi and Mankhurd, in Mumbai, where
the real estate prices are low, it would be necessary to incentivize
disinterested developers with increased FSI.
(iii) The Slum Act should be implemented to include minimum
standards of living conditions through provision of civic amenities
i.e. water, electricity, drainage, access to streetlights, sewer lines to be
implemented in a time-bound manner, in the interest of the slum
dwellers.
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(iv) The slum dwellers be conferred with option of voluntary in-situ
rehabilitation by providing two alternatives i.e. redevelopment
through a voluntary organisation, or developer or redevelopment
through a public authority i.e. SRA or MHADA.
Issue No.II: Identification of Slum Dwellers:-
Ms. Singh would, in this regard refer to the Afzalpurkar Committee
Report, which declared the objective of the Slum Rehabilitation Scheme to usher
in better health, a cleaner environment, renewed self-respect for people and last
but not the least social justice for the downtrodden. There is no independent
body entrusted with the task of monitoring, evaluating or reviewing the slum
rehabilitation scheme. Thus, an independent body is quintessential to conduct
periodic and relevant studies which can be considered by the SRA for
implementation. Ms. Singh would make the following suggestions:-
(A) The procedure for conducting the General Body Meeting for
the appointment of developer must strictly follow the State
Government Resolution dated 4 July 2019.
(B) The eligibility of slum dwellers is to be determined based on
the date of survey. Individuals residing after the year 2000
may be considered for housing under alternate schemes such
Pradhan Mantri Awas Yojana or Adarsh Colony Scheme to
offer housing either at construction cost or through rental
basis.
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(C) Once the scheme is notified, the society is formed and
eligibility is determined, the slum dwellers may initiate the
process of appointing a developer or undertaking the
rehabilitation themselves as per prescribed procedure. The
guidelines prescribed under Section 79(A) of the Co-operative
Societies Act can be enforced for the redevelopment of slum
areas.
(D) The actual FSI plus TDR granted to developer for a slum
rehabilitation scheme should be based on some profit capping.
FSI of 1.5, for instance, would be adequate for rehabilitation.
(E) For redevelopment schemes, in respect of both alternatives i.e.
slum areas or low income housing areas should remain under
the ownership of a public authority or a community land
reserved, exclusively for the purpose of low income housing. If
the slum is on private land the ownership ought to be
transferred to such public authority.
(F) As suggested in the Afzalpurkar Committee Report a
comprehensive review of the Slum Rehabilitation Scheme
should be seriously undertaken after 10 years of its formation,
to evaluate both physical as well as socio-economic outcomes
of the scheme.
Issue V - Transit Accommodation – Project Affected Persons Scheme (PAPs) read
with Issue VIII i.e. Miscellaneous Issues.
Ms. Singh in this regard, would refer to clause 3.11 of Regulation 33 (10)
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of DCPR – 2034 which deals with Project Affected Persons (PAPs) and
essentially permits involuntary relocation of protected slum residents. The PAPs
fall under Appendix – IV of DCPR 33(10) of 2034. In the above context, after
flagging certain issues concerning the scheme relating to PAPs, Ms. Singh has
made the following suggestions:-
(A) For slum areas where in-situ rehabilitation cannot be undertaken due
to the site being in an uninhabitable areas or being required for
development of essential public infrastructure, the State Government
ought to take guidance in preparing a resettlement policy based on
World Bank’s Operational Directives 4.0. This provides guidelines as
to how rehabilitation process can be planned and managed.
(B) The resettlement sites are to be located within the same ward or
within two kilometres of the slum area being cleared. The relocation
sites may not be situated on polluted land or in immediate proximity
to pollution sources that threaten the physical and mental health of
the inhabitants.
(C) For the existing PAP tenements, all planning/development authorities
ought to submit data on the number of tenements built and allotted
thus far, vacant tenements in their possession, location of the
tenements, condition of the tenements i.e. usable/unusable, usable
after repairs, number of tenements required by each authority for
various projects, etc. Such information to be made publicly available
and accessible on the Corporation’s website.
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(D) Until residents are transferred to permanent tenements, the
MMRDA/Planning Authority to be held responsible for maintaining
the building and for providing necessary facilities. In this regard, the
URDPFI guidelines should be followed with regard to open spaces,
pre-primary and primary schools, health centres and other amenities.
The MCGM to take initiatives to redevelop slums located on its own
land and construct PAP tenements on the excess land to address the
significant shortfall in the availability of PAP tenements.
(E) MHADA to play a proactive role in the creation of affordable housing
on its land which could be used for creation of rehabilitation homes
for current dwellers, as also for affordable housing.
Submissions on behalf of Indira Nagar Slum, Prakash Kumbhar and Ekta CHS
Association by Mr. Mihir Desai, Senior Advocate:
35. Mr. Desai in the course of his arguments by placing reliance on the
affidavits of the above-mentioned parties, followed by detailed written
submissions has delved into aspects such as achieving the goal of a Slum-free
Mumbai, the dire need to empower the statutory authorities in enforcing the
provisions of the Slum Act to meet such objective, issues relating to illegal
eviction and demolitions under Sections 33 and 38 of the Slums Act. He has also
taken the Court through certain suggestions inter alia touching upon
independent monitoring and reviewing of the Slum Act, the reason for not
having the SRA to be the sole repository/body undertaking redevelopment
works.
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36. Mr. Desai, at the threshold, would submit that the core objective behind
the Slum Act is the improvement, clearance and redevelopment of slum areas
including protection of occupiers from eviction and distress warrants. The 1996
Amendment, based on the Afzalpurkar Committee recommendations introduced
Chapter I – A for Slum Rehabilitation Schemes, drifting away from merely
declaring slum areas for improvement works so as to help actualize the larger goal
of transforming Mumbai into ‘Slum Free’ city. Mr. Desai would emphasize that
lack of affordable housing forces incoming migrant populations into informal
settlements causing slums to proliferate faster than their redevelopment. He
would then stress upon the legal duty/obligation of the authorities to improve
slums. In this context, he has referred to several provisions, inter alia , section
61AA, 61D, 63(a), 354B and 354C of the MCGM Act, 1888, read with section
5A of the Slum Act.
37. Mr. Desai would then make the following suggestions in support of his
submissions, which are as follows :-
(a) He would urge that the Apex Grievance Redressal Committee
(AGRC) and Grievance Redressal Committee (GRC) are
composed of serving bureaucrats who have diverse
responsibilities however, due to absence of judicial mind these
statutory bodies are not able to function and perform in the
manner required to subserve the avowed objective of a slum free
city. He refers to the decisions of this Court in Jijabhai Dashrath
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20
Shinde vs. State of Maharashtra and Aslam Hasimali Shaikh vs.
21
State of Maharashtra wherein this Court expressed shock and
displeasure that thousands of cases were pending as the AGRC
sat only once a week and also condemned the practice of giving
slum dwellers only 7 days notice to vacate, as also the alarming
situation of its unavailability for urgent matters, forcing citizens
to rush to Constitutional Courts. In this regard, he would submit
that the composition of AGRC should be revised to include a
retired Judicial Officer of the rank of a District Judge. The
jurisdiction over Appeals should be vested in a Single, full-time
dedicated Appellate Authority to ensure timely justice, which is
the need of the hour.
(b) Suggestions were made regarding following mandatory
procedural safeguards before initiation of eviction proceedings
under Sections 33 and 38 of the Slum Act. This would include a
mechanism to ensure strict compliance with the principles of
natural justice. This is to ensure that the eviction notices are
properly served to the concerned slum dwellers well in advance
and critical documents such as notice register, demolition register
should be available upon request, to the slum dwellers.
(c) Mr. Desai would urge that the SRA is already overburdened. In
such view of the matter, both MHADA and MCGM on whose
20 . Writ Petition (L) No. 5671 of 2024
21 Writ Petition No.5600 of 2019

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land rehabilitation schemes are announced should carry out the
slum rehabilitation schemes independently.
(d) Mr. Desai would stress on independent monitoring and periodic
review of the Slum Act. This should embrace the aspect of
reviewing progress and offer recommendations aimed at
achieving good quality, affordable and accessible housing to all
income groups by a body of independent and interdisciplinary
group of individuals tasked with such functions.
(e) Lastly, he would refer to the judgment of this Court in
22
Lokhandwala Infrastructure Pvt. Ltd. vs. State of Maharashtra .
This is to emphasize that the Court held that the execution of the
Slum Rehabilitation Scheme is inherently laden with a public
character. The authorities exercising power under the Slum Act
ought to ensure that the scheme is not misused and is utilized to
subserve public purposes which is not trammeled by private
contractual arrangements/agreements.
Submissions on behalf of Nivara Hakk Suraksha Samiti – Intervenor:- (Mr.
Navroz Seervai, Senior Advocate
38. Nivara Hakk Suraksha Samiti” is stated to be a public charitable trust
registered under the Bombay Public Trust Act, 1950, which is stated to be an
organization founded in 1981that stands for people’s right to housing and right
to a life and dignity.
22 2011 (3) Mh.L.J. 469

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39. Mr. Seervai has addressed the Court, more particularly, on the specific
issue of apportionment of slum land between the “redevelopment area” and the
“sale area”. In such context, Mr. Seervai has taken us through the various issues
related to such apportionment, along with the adverse health, social and
environmental impact of the rehab buildings on their occupants. He has also
focused on the conditions prevailing in such buildings, poor environmental
conditions, poor maintenance, lack of amenities and fire safety as well as the need
for open spaces for holistic developments of such rehab buildings, and suggested
proposed measures which would assist in mitigating such problems and arriving
at a feasible solution.
40. Mr. Seervai would at the threshold submit that 50% of the city’s
population i.e. about 7 million people live in congested slums which occupy 14%
of the total developable area of 268 sq. kilometres. Under the slum rehabilitation
schemes led by builders/developers the slum dwellers are rehabilitated in 1/4th to
1/3rd of the land area (constituting 5% of the city’s developable land area),
thereby increasing the congestion to three-fold. Also, the density of the buildings
has serious human and environmental consequences. The balance 3/4th to 2/3rd
land area is capitalized for high cost real estate development, turning the scheme
to a slum land grab game, the rehabilitation of the slum dwellers being incidental.
41. Mr. Seervai would refer to paragraph 34 of the decision of Supreme Court
in Yash Developers(supra) to submit that the arbitrary trend of land
apportionment, in the absence of policy guidelines by the SRA is the root cause
of a host of problems. In most instances, the land apportionment for rehab and
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sale is on a 1:4 to 1:3 basis whereas, the FSI share as per the policy is equal i.e. 1:1
in the city area and 1:0.75 in the suburbs for rehab and sale components. As a
result, the tenement and population density for rehab and sales is 3:1. Slum on an
average have tenement density of 300-350 tenements per hectare (based on
population as per 2011 census). This figure is arrived at on the basis of slum
occupied land in Mumbai being 3000 hectares and having a population of
approximately 50 lakh i.e. 10 lakh slum tenements, thereby making the slums
overcrowded and congested.
42. Typically, in SRA projects, the rehab buildings are segregated on 25% to
30% of the total slum land. The remaining 75% to 70% of the slum land is
apportioned towards the free sale component. Since the prevailing tenement
density in rehab areas is on an average 1200 to 1300 tenements per hectare, the
density of population inhabiting such tenements would be 6000 to 6500 persons
per hectare. According to Mr. Seervai, such a situation has occurred inter alia,
because there are no statutory regulations for apportionment of land between
rehab areas and the free sale component and there is no prescribed maximum
tenement density for rehab buildings in slum projects.
43. Mr. Seervai would next submit that since a much smaller land area than
what would ordinarily be required is apportioned to rehab buildings, it would
result in the following:-
(a) Rehabilitation buildings are constructed as high rise towers
sometimes having 15-20-30 storeys. Because of the large
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number of tenements these buildings have a very high
tenement density leading to overcrowding.
(b) There is a mere paltry 6 metre distance prescribed between two
rehab buildings. Moreover, even thereafter, developers are given
concessions and relaxations in relation to open spaces that are
provided for rehab buildings.
(c) Barely any open spaces are provided to rehab buildings which
do not comply with the minimum requirements stipulated by
the DCPR 2034 for other non-SRA buildings in the city.
Hence, the manner in which the rehab buildings are planned,
designed and then constructed has caused significant misery
forcing the slum dwellers being tightly packed in a virtually
uninhabitable manner, in the smallest possible section – in
about 25% to 30% of the land area that they occupied prior to
the implementation of the project.
44. Mr. Seervai has painstakingly urged the adverse health conditions of the
occupants in the rehab buildings; relying on a research paper published online
dated 16 March 2020 where scholars have in a systematic manner explained the
nexus between the poor planning of the rehab buildings in slum projects and the
burden of tuberculosis faced by the occupants of these buildings. The study was
undertaken on the basis of a survey conducted in respect of three resettlement
colonies i.e. (Lallubhai Compound, Natwar Parekh Compound and PMG
Colony, Mumbai). The research paper is entitled “Association between
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architectural parameters and burden of tuberculosis in three resettlement colonies
23
of M-East Ward, Mumbai” . This delves into the issue of land apportionment as
it links the various medical and health problems faced by the occupants of the
rehab buildings in slum project to lack of natural ventilation and light.
45. Mr. Seervai has elaborated on the precarious condition of women residing
in the slums. He would submit that the utter lack of privacy in rehab building
puts women at high risk from abuse. Poorly lit and maintained common passages
and staircases in rehab buildings, where lifts do not often work, contribute to
women being unsafe and insecure, leading to serious privacy issues for the
women.
46. Mr. Seervai would then refer to the poor environmental conditions, more
particularly, lack of ventilation/air circulation. This contributes to a difficult and
unhealthy environment for the occupants of rehabs buildings. He would then
refer to the aspect of the poor maintenance of such rehab buildings. In this
context, he would illustratively state that a deposit of Rs.20,000/- per family
(now raised to Rs.40,000/- per family) made by the developer to the SRA, which
is transferred to the rehab society is wholly inadequate for the high maintenance
overheads, making it difficult for the occupants, especially the aged and
handicapped to reach their homes on upper floors.
47. Mr. Seervai has highlighted that small rehabilitation areas having a high
population density, ought to have access to amenities such as markets,
23 . Pardeshi, P., Jadhav, B., Singh, R., Kapoor, N., Bardhan, R., Jana, A., … Roy, N. (2020).
Association between architectural parameters and burden of tuberculosis in three resettlement colonies of
M-East Ward, Mumbai, India.  Cities & Health ,  4 (3), 303–320. https://doi.org/10.1080/
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playgrounds, etc. which are completely missing. In fact, even in instances where
there are plans for such amenities, the same are not provided and instead such
spaces are infested with hawkers. It is because of the relaxation on requirements
of minimum open spaces that the occupants, specially children, who grow up in
such rehab buildings are deprived of the basic minimum space for their social
development.
48. Mr. Seervai then flags the issue of lack of fire safety, much less no fire
safety in the rehab buildings, which are constructed in a manner that makes it
impossible for a fire engine to enter in case of a fire. He has relied on some
photographs in this regard. This issue, as Mr. Seervai would submit is directly
linked with skewed land apportionment which requires urgent attention in the
context of a performance audit.
49. Mr. Seervai would submit that the root cause behind the problem of
unscientific and inequitable apportionment of slum land between rehab and free
sale area is attributable to the ambiguity and lack of clarity in the extant statutory
framework. In this regard, he would refer to Regulation 3.12(A) of Regulation
33(10) of DCPR 2034 which prescribes a minimum tenement density of 650
tenements per net hectare. According to Mr. Seervai, there is ex-facie
discrimination in the Regulations considering that Regulation 30 prescribes a
maximum tenement density of 450 per hectare where the FSI is 1. The real
outcome of the DCPR 2034 does not stipulate any maximum tenement density,
which has led to rehab buildings having unacceptable high tenement density in
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the range of 1200 to 1300 and above. Further, referring to Sub-regulations 3.14
to 3.16 of Regulation 33(10) read with Sub-sections (4) and (5) of Section 15A of
the Slum Act. Mr. Seervai would submit that it is the conscious legislative
omission to not prescribe any criteria for the basis of apportionment which has
led to discriminatory apportionment of slum land to the free sale area and
consequent deprivation of the rehab area. Mr. Seervai, in the context of
Regulation 33(10), Sub-regulation (6) has highlighted on various relaxations
prescribed in relation to construction of buildings and other requirements in the
rehab area, which augments the problem in this regard. Thus, he would submit
that the net effect of the present statutory regime brings with it unsustainable
consequence of there being no FSI limit for rehab components/ buildings which
is in the teeth of the provisions of the MRTP Act read with the DCPR 2034, as
also Article 21 of the Constitution of India.
50. In the above backdrop, Mr. Seervai has made the following suggestions:-
(a) Firstly, there ought to be a maximum density cap as opposed to a
minimum as provided under the extant statutory framework. It is
proposed that a maximum density for rehab be fixed at 600
tenements per hectare. This would be consistent with the
maximum density of 450 t/ha as specified in the DCPR 2034 for
general housing projects.
(b) As regards the inadequate amenities/lack of basic amenities in the
rehab areas, it is proposed that the standards specified in the
DCPR 2034 and Town Planning Schemes, based on
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development area in population, for any other development be
implemented in slum redevelopment projects.
(c) The Slums TDR also ought to be utilized in slum redevelopment
contrary to the prevalent practice of utilizing it in any other
project. It is proposed that TDR sale and purchase be restricted
for use in other slum redevelopment projects to maintain
uniform density across various slum pockets that are currently
unequal. There is a suggestion that the SRA could operate a Slum
TDR Bank for ease of TDR encashment, sale and regulate its
pricing.
(d) It is proposed that the practice of concessions and premiums
granted under the discretionary power of the CEO- SRA should
be immediately stopped, so as to facilitate in alienating the vexed
issue of apportionment, as discussed above.
Submissions on behalf of NGO Alliance for Governance and Renewal (NAGAR)
in IA(L) 28730/2024 (Ms. Gulnar Mistry, Advocate)
51. The Applicant is a society registered under the Societies Registration Act,
1860 and a public charitable trust under the Maharashtra Public Trust Act, 1950,
established in the year 2000. It is stated to be working in the areas of
preservation of public open spaces, solid waste management, improvement in air
quality, preservation of water bodies, beaches, mangroves, built and natural
heritage features, efficient road space management, and water conservation.
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52. Ms. Gulnar Mistry, on behalf of these Applicants, would rely on I. A. No.
2409 of 2025 to support the applicant’s case. She has made suggestions
pertaining to the first of the seven issues flagged by the Supreme Court in
paragraph 34 of its judgment in Yash Developers (Supra). The first issue brought
forth by the Supreme Court is “i) Identification and declaration of land as a slum.
This problem involves an examination of the role of authorities in giving such
recognition, insidious intervention of builders in the said process casts doubts on
the independence and integrity in the decision-making process;”.
53. Ms. Mistry, addressing the Court on issues pertaining to identification of
slums on open spaces would submit that slums have encroached upon open
spaces and, under the existing policy, in situ rehabilitation of such slums areas is
being undertaken. The current process for identifying slums does not distinguish
between slums on regular land and those encroaching on reserved public open
spaces. Ms. Mistry further submits that this failure exacerbates overcrowding at
the local level and in the city at large, because areas that are designated for
recreational use are diverted and no longer remain available, including to slum
dwellers who live in cramped quarters and for whom this civic amenity is even
more important.
54. Ms. Mistry would urge that open space reservations are seen as essential
public amenities, and can neither be encroached upon nor diverted for other uses.
She places reliance on the law laid down by the Supreme Court in Olga Tellis v.
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24
Bombay Municipal Corporation , (para 57 page 589), MCGM V. Hiraman
25
Deorukhar & Ors. (para 7 to 9, 12 at page 419- 420) to affirm the same.
55. Ms. Mistry further places reliance on the observations of the Supreme
26
Court in Lal Bahadur Vs. State of Uttar Pradesh & Ors , (para’s 14-16 at pages
415 to 417, para’s 24, 26 at page 427) wherein, it was held that altering the use of
green belts for residential use violates the public trust doctrine and Bangalore
27
Medical Trust Vs. B.S. Mudappa & Ors. (para 24 page 75) which held that
open spaces for recreation are amenities of great public concern and vital interest
to be preserved in a development scheme.
56. Ms. Mistry would further draw the Court’s attention to this Court’s
28
decision in NAGAR Vs. State of Maharashtra , which observes that the Court is
deeply aware of the serious shortage of open spaces in the city of Mumbai, as the
data presented, sourced from official surveys and civic reports clearly
demonstrates. Ms. Mistry further states that the per capita open space available in
Mumbai is much lower than international and even national planning standards,
and highlights that 35% open space is a minimum requirement, not an average or
flexible figure and observes that if any project manages to retain more than 35%
through better planning, it should be appreciated and encouraged.
24 . (1985)3 SCC 545
25 . (2019)14 SCC 411
26 . (2018) 15 SCC 407
27 1991 4 SCC 54
.
28
(Writ Petition No. 1152 of 2002)
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57. Ms. Mistry further highlights that through this Court’s decision in
NAGAR V. State of Maharashtra (supra) that the State Government has been
directed to undertake a “comprehensive policy review” of Regulation 17 (3)(D)
(2) within a period of 24 months, including an evaluation of whether the 35:65
ratio serves the goal of sustainable development. Additionally, it has been
directed that if necessary, the state shall frame revised regulations ensuring a
higher retention of open space, enhanced civic safeguards and exclusion of fresh
encroachments from rehabilitation benefits.
58. In the above backdrop, Ms. Mistry has made the following two-fold
suggestions:-
(a) Allowing the amalgamation of slum rehab projects on open lands
with other slum schemes in the same ward which are not on open
spaces, and allow the utilization of FSI/ TDR from the area of
open space designation with the view of incentivizing the clearing
and maintenance of open spaces by all;
(b) To treat public open spaces on par with vital public projects under
clauses 1.3- 1.4 and 3.11 of DCR 33 (10).
59. Ms. Mistry further underscores that SRA has suggested that it is
considering a “cluster redevelopment approach” to slums as measure to free up
amenity space by shifting a slum on one plot onto another plot and undertaking a
joint/cluster redevelopment. This would further safeguard the amount of open or
designated reservations to which such a cluster redevelopment scheme applied
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would be retained as is and not be reduced and the open space should be
preserved and retained in a continuous manner, so as to allow for larger public
open spaces.
60. Ms. Mistry further highlights that slum rehabilitation projects have been
implemented without reducing open spaces, she refers to a time when this Court
had stayed a 1992 notification that allowed 67% of land for rehabilitation and
sale while retaining 33% for open spaces. Around 45 Acres of open spaces were
preserved by adjusting adjoining lands. However, the measure was limited to
contiguous plots, restricting its wider application.
61. In the above backdrop, Ms. Mistry would suggest on prioritizing public
spaces on par with public projects and providing incentives for clearing and
maintaining open spaces via different methods like amalgamation of slum rehab
projects on open lands with other slum schemes.
Submissions on behalf of Mr. Vinay Hule and Mr. Ramesh Makhija in
IA(L)/28730 of 2024 (Mr. Akash Rebello, Advocate)
62. Mr. Akash Rebello, learned counsel for the above Applicant/Intervenor in
the course of his submissions has placed reliance on the affidavit filed by these
applicants which states that the Applicants i.e. Mr. Hule is a member of one Om
Siddhivinayak (SRA) CHS and is a slum dweller, whereas the other Applicant Mr.
Makhija, is the owner of a factory premises which has been designated as a slum
area.
63. Mr. Rebello on behalf of these Applicants has advanced contentions along
with suggestions on four main issues viz. :-
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(i) Identification of slum dwellers;
(ii) Selection of developers;
(iii) Provisions relating to transit rent;
iv) Effectiveness of statutory remedies;
64. On the first and second issues, Mr. Rebello would submit that they are
closely intertwined and interconnected. The identification of slum dwellers and
the appointment of the developer is the first step in the rehabilitation process.
Accordingly, if the slum dwellers who are beneficiaries of the scheme are not
properly identified, it would lead to various challenges and protracted litigation
which would in turn affect the entire slum rehabilitation scheme. In this context,
Mr. Rebello would refer to the judgment of this Court in Awdesh Tiwari and Ors.
29
vs. Chief Executive Officer, SRA and Ors . . This is to submit that this Court in
the said decision observed that the unregulated process particularly when there
are instances of overlapping slum schemes, which are rival societies, leads to
unhealthy competition by rival developers, which often results in delay to the
scheme.
65. Mr. Rebello would submit that there are circulars of 15 February 2008, 02
February 2015 and 23 April 2024 which apply after the appointment of a
developer and at the stage of acceptance of the slum rehabilitation scheme.
However, for the first stage of appointment of a developer by the slum dwellers
there is no circular or process to regulate the same.
66. Addressing the above issues, Mr. Rebello would submit that the SRA
ought to devise a mechanism to regulate the process and get involved much prior
29
2006(4) Mh.L.J. 282
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to the submission of the proposal by the developer so as to mitigate the
challenges referred to above.
67. Mr. Rebello addressing the Court on the provisions relating to transit rent
would submit that the circulars of the SRA have, to a large extent, dealt with the
issue of non-payment of transit rent. However, experience reveals that SRA has
passed orders refusing to compute such transit rent, which have more often than
not been set aside by the High Court. This leads to an anomalous situation
where, even at the interim stage, there is a long drawn process to determine what
the transit rent is. Often it involves appeals and compels the slum dwellers to run
from pillar to post to get such rent even after vacating their premises.
68. It is urged in such context, that while the slum dweller and the developer
may be free to agree upon a higher rent, at the very least, the basic rent must be
ascertained/fixed. This would avoid a situation where disputes arise as to the
quantum of such rent payable to a slum dweller which is prolonged and not
decided over long period of time. However, if a base rent is fixed, at least that
amount can be paid to the slum dweller pending final adjudication.
69. On the issue of effectiveness of statutory remedies, Mr. Rebello has
referred to the decision of this Court in Tulsiwadi Navnirman CHS vs. State of
30
Maharashtra . The Court in the said case observed that in a situation where
disputes of a technical nature could be sorted out and disposed of before the
30
2007 SCC OnLine Bom 1000
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Committee, which would lessen the burden on the High Courts in exercise of
their jurisdiction. In this regard, Mr. Rebello would strenuously urge that it is the
absence of a legal mind on the part of the AGRC that leads to remand of its
orders, ultimately causing inordinate delay.
70. Mr. Rebello would in the above backdrop suggest that to ensure
transparency in the process, it would be just and expedient that the AGRC is
chaired by a retired High Court Judge. This would reduce the burden of this
Court in deciding matters and examining the issue of application of mind by the
AGRC, when petitions are filed in this Court, challenging such decisions.
Submissions on behalf of Late Mr. Shirish Patel, Urban Planner: (Mr. Shiraz
Rustomjee , Senior Advocate)
71. Mr. Shiraz Rustomjee learned Senior Counsel, has represented this
Applicant who passed away during the pendency of this proceeding on 20
December, 2024. He is now represented by Justice Gautam Patel (Retd.). His
son and one of the legal heir have sought to intervene on his behalf, vide IA
dated 28 January 2025. The late applicant was a public-spirited person, having a
distinguished and exemplary record of working in the areas of urban planning,
public spaces, and housing including having personally designed the Kemp’s
Corner Flyover in Mumbai in 1965. The applicant is desirous of placing before
this Court his views and suggestions to assist in its endeavour to review the
working and effectiveness of the Slum Act.
72. Mr. Rustomjee, at the very outset, would refer to the decision of the
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Supreme Court in Yash Developers (supra) dated 30 July 2024 and more
particularly paragraphs 32 to 42 thereof, wherein the Supreme Court has made
observations regarding the issues in the working of the Slum Act and the need for
“reviewing” the Slum Act to identify the cause of the problems indicated inter alia
in paragraph 34. The said para reads thus :-
“34. The exasperation of the High Court about working of the Act is
understandable. The present appeal is a classic example of why the High Court’s
concern is genuine. It has been noticed that the statutory scheme is problematic
with respect to: i) Identification and declaration of land as a slum. This problem
involves an examination of the role of authorities in giving such recognition,
insidious intervention of builders in the said process cast doubts on the
independence and integrity in the decision-making process; ii) Identification of
slum dwellers: This involves a complicated process of proof of such a status, the
attendant problem of groupism, giving rise to competing claims inevitably
leading to litigation; iii) Selection of a developer: The Act leaves this decision to
the cooperative society of slum dwellers and the majority decision is
manipulated by competing and rival developers; iv) Apportionment of the slum
land between redevelopment area and sale area: This is yet another area where
court has witnessed developers seeking to increase the proportion of the sale
area, leading to contestation; v) Obligation to provide transit accommodation for
the slum dwellers pending redevelopment: Invariably, we see instances where
the developer does not provide transit accommodation within time or provides
an inadequate alternative in the form of a quantified amount towards rent, On
the other hand, there are instances where some slum dwellers refuse to vacate the
premises on the ground that the transit accommodation is either inconvenient or
the amount offered is insufficient; vi) There are also issues of lack of
independence and objectivity in the functioning of statutory authorities: This is
a matter of serious concern. Courts have witnesses that the authorities have no
independence and, their tenure is also short. Additionally, the functioning of
these statutory authorities gives an indication that there could be a regulatory
capture; vii) Another concern which exists is about the effectiveness of statutory
remedies: Statutory remedies are ineffective and at the same time, lacking in
accountability and vii) Judicial review proceedings under Art. 226 cannot be a
long-term solution: We have given details of the number of writ petitions
pending before the High Court in Para 33 .”
73. In the above backdrop, Mr. Rustomjee has made the following
suggestions:-
(i) The primary step should be to disregard the notion that a poor
family should be provided with “free housing” as it lives in an urban area,
highlighting that everyone should pay for their own house, construction
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cost. Hence, subsidies, housing loans may be made available for the same.
Furthermore, for families who cannot afford EMIs for the construction
cost, housing should be provided on “leave and licence” basis by the SRA.
(ii) Mr. Rustomjee would refer to the Afzulpurkar Report, wherein he
would stress upon the importance of availability of finance at economical
rates which would include viable schemes for facilitating alternate housing
in favour of notified slum dwellers. He would in this context highlight the
importance of this constitutional imperative, which is imminent so as to
address the issues under the Slum Act, as far as rehabilitation of the slum
dwellers is concerned.
(iii) The ownership of land must be separated from ownership of the
structure standing on it. On selling his premises, the occupant may recover
his cost of construction and the same should be done at the prevailing
market rates, less any appropriate amount for the deterioration of the
construction. The occupant should not be allowed to claim any
appreciation of the land value, emphasizing that owner of the structure
should be permitted to sell it only to owner of the land, as the appreciation
belongs to the owner of the land. This should be done at prevailing
construction cost less adjustment for deterioration.
(iv) The government should part ways with the idea of monetizing the
value of the land that has been kept aside for the sale component. Instead,
such land should be used to provide the rehab building with proper light
and ventilation, and amenities such as health-care clinics, public toilets,
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pocket parks, etc., that are accessible within a walking distance.
(v) Where the land is owned by the government, such ownership be
transferred to a Community Land Reserve (CLR) which is similar to Forest
Reserves and Wildlife Reserves, where land is reserved for specific
purpose. The said CLRs will be required to keep their land for exclusive
use for low-income housing, barring sale of such land and any charge for
its use must not exceed maintenance costs. The CLRs should be non-
profit companies under the Section 8 of the Companies Act, 2013 and the
hallmark of these should be that of achieving the utmost transparency,
with the specified style of management, as set out in their Memoranda and
Articles of Association.
(vi) The National Building Code, 2016, (NBC 2016) (Part 3, Section
C-2.4.2) specifies 500 dwelling units per hectare (du/ha) as the maximum
density on a plot for 15 sq. metre apartments in four storey walk-ups. The
NBC 2016 does not specify which amenities have to be within a walking
distance of the 500 du/ha as an essential aspect of the housing
construction.
(vii) The essential amenities to be provided on site must be first defined
for the size of the population to be rehabilitated on that site and under no
account should the same be compromised. Adequate natural light and
ventilation, particularly to the lower floors, and the space between
buildings for facades that have windows shall not be compromised. In this
regard, NBC 2016 (Part 3, Section 8) which provides for clear guidelines,
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must be adhered to.
(viii) If the conditions spelt out above in regard to adequate social
amenities, density, light and ventilation are not feasible, then in such case
some families shall be relocated to adjacent vacant land or in neighboring
redevelopment sites that are less over-crowded.
74. Mr. Rustomjee underscores the importance of quality construction lasting
more than 100 years, stating that regardless of the hurdles/ obstacles and the
pressures, acceptable living conditions should not be compromised at any cost.
In this context, he would lay emphasis on the fundamental rights guaranteed
under Article 21 of the Constitution.
Submissions on behalf of Nagardas Dharsi Bhuta Charities (land owner) (Mr.
Rajiv Kumar, Senior Advocate)
75. Mr. Rajiv Kumar, learned Senior Counsel has represented the applicants.
Reliance is placed on the Affidavit of one Mr. Kamlesh Jaysukhlal Bhuta.
76. At the outset, Mr. Rajiv Kumar would state that the Applicant is a trust
having ownership of land which is notified as a slum area. The applicant-Trust
had filed proposals/ schemes to develop and rehabilitate its land hence this
applicant is aware of the functions and challenges that crop up in relation to
redevelopment of slums.
77. Mr. Rajiv Kumar, at the outset would referring to the judgment dated
20th September 2024, of the Supreme Court in Yash Developers (Supra) and
highlight the issues framed therein, as also to the decision(s) of a co-ordinate
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bench of this court in Indian Cork Mills (supra) and Bishop John Rodrigues vs.
State of Maharashtra (supra) to submit that the Court has recognised a
preferential right is conferred on the owner to undertake redevelopment under
the provisions of Section 3B (4)(e) and Section 13(1) and (2) of the Slum Act.
His contentions is to the effect that while recognising such right it must be given
realistic effect to enable a landowner to develop its own land in a bona fide
manner, in interest of all stakeholders.
78. Mr. Rajiv Kumar, outlines the process of redevelopment to be followed by
a landowner upon the land being declared as a slum rehabilitation area under
Section 3(C)(1) of the Slums Act. His concern is that after spending atleast 6 to
12 months and incurring large scale expenses, the landowner is expected to get
consent of 51% of slum dwellers. In such context, it is submitted that, the
landowner is exposed to unforeseen obstacles such as: slum dwellers begin to
assert rights superior to those of the actual landowners by forming proposed co-
operative housing societies and appointing their own developers to seek approval
for redevelopment under the Slum Rehabilitation Scheme. These societies are
often influenced or supported by undisclosed third parties who later emerge as
developers. As a result, genuine landowners frequently find themselves entangled
in frivolous and vexatious litigation initiated by slum dwellers or such hidden
agencies. Consequently, despite having invested substantial time and money,
landowners may ultimately find their proposals rejected at the Letter of Intent
(LOI) stage.
79. Mr. Rajiv Kumar further highlights that in the situations as described
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above, there have been large scale encroachments on private lands, followed by
long drawn litigation, which ultimately leads to the failure of Slum Rehabilitation
Schemes. As per the Slum Rehabilitation Authority's (SRA) slum cluster list of
2015, up to 35,67,12,299 sq. ft. of land in Mumbai is slum encroached as per
reports available on the internet, 15,76,87,200 sq. ft. of this is private land.
80. Mr. Rajiv Kumar expresses concern with regard to circular No. 144 dated
st th
31 August 2013, Circular No. 144A dated 9 November 2015, and Section
13(1) of the Slum Act. He submits that it is the consent of slum dwellers which
acts as a stumbling block to several SRA projects.
81. Mr. Kumar would urge that upon the SRA declaring a particular property
as a slum under Section 3 (C)(1), the landowner is given an opportunity to justify
why the said land ought not to be acquired. In responding to any acquisition
notice, the landowner may show his inclination to rehabilitate and redevelop the
said property. However, the land owner is not kept informed about any decision
that the SRA and/or the State Government takes on such hearing/cause shown by
the owners of the land. It is only when the notice is published that the
landowner becomes aware that the land has been acquired. There is an absence of
transparency in the manner in which the acquisition process is undertaken, which
leads to further litigation and delays the process of redevelopment of slums
properties.
82. Mr. Rajiv Kumar underscores that the Slum Act is a beneficial legislation
with provisions meant to ameliorate the poor condition of slum dwellers, who
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should not be jettisoned only on technical grounds or procedural infirmities.
These should not be given undue importance once the Statutory Authorities
have performed their task. He further submits that the Slum Act is used as a land
grabbing tool by third party developers at the behest of societies, which ought to
be stopped/ nipped in the bud.
Submissions on behalf of Skycon Infrastructure, Private Landowner (Mr. Kirti
Munshi, Senior Advocate)
83. Mr. Kirti Munshi, learned Senior Counsel, has appeared on behalf of
Skycon Infrastructure, private landowner. He has placed reliance on the
contentions of the applicant as raised in the affidavit dated 18 September 2024.
84. Mr. Munshi at the outset submits the issue of the compensation received
by private slum owners for their private land being acquired is inexplicably low.
He has drawn the Court’s attention to the statutory provisions and the First
Schedule of the Slum Act that governs the procedure for the computation of
compensation payable to private land owners. It is submitted that there is no
uniformity between the compensation which is payable under various statues
wherein the private landowner is deprived of his land for a public purpose and
the compensation payable under the Slum Act is not commensurate with the
other acts, but in fact substantially lower than even the compensation which is
awarded under other acts to private landowners for being deprived of their
private land.
85. To highlight such aspects, Mr. Munshi has presented before the court
computation of compensation under other acts, such as Right to Fair
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compensation Act, 2013, National Highways Act, 1956, Maharashtra Regional
Towns Planning Act, 1966, Development Control Promotion Regulation
(DCPR) 2034 Mumbai, Unified Development Control Promotion Regulation
(UDCPR), 2020, Maharashtra Industrial Development Corporation, 1961,
Maharashtra Housing Area Development Act, 1976. Mr. Munshi then would
emphasize that the new legislations are either guided by the principles of Right to
Fair Compensation Act, 2013, which contemplates market value or comparable
sales instances or the new DCPR 2034 and the UDPCR 2020 which
contemplate compensating the landowner in the form of incentives which if
monetized would be of greater value than even what would be awarded to a
landowner under the Right to Fair Compensation Act, 2013.
86. Mr. Munshi places a hypothetical illustration of a comparative calculation
of compensation on the basis of various statutory provisions noted above in
respect of the above landowner’s plot of land, in order to illustratively
demonstrate the disparity in compensation which would have been awarded in
respect of his plot under the various acts mentioned above. After perusing the
above comparative chart, the compensation awarded under the Slum Act is found
to be abysmally lower than the compensation awarded to the landowner for the
same plot if the land was acquired under other acts.
87. Thus, Mr. Munshi submits that not awarding the private landowner a
realistic compensation, would amount to penalizing the private landowners for
the inability and lack of will on the part of the state machinery to protect private
land from being unauthorizedly encroached or the inability to remove such
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encroachments.
th
88. Mr. Munshi has referred to the Circular No. 167 dated 30 December,
2015, which mandates that once certified Annexure – II is received and 70%
consent of eligible slum dwellers is verified and granted to the developer/society,
the scheme shall not be stopped due to pending litigation over title or
development rights unless specific injunction is issued by a competent court of
law. It is submitted that individuals approach Civil Courts or other authorities to
obtain interim or ad-interim orders staying Slum Rehabilitation Scheme (SRS)
implementation and certain plaints ingeniously drafted to set up a case of fraud of
some nature to invoke the assistance of these for a to delay the implementation of
the SRS.
89. Mr. Munshi would urge on the issue of interference by the Civil Courts
despite statutory provisions creating a bar/ouster of jurisdiction under Section 42
of the Slum Act as well the Section 149 of the MRTP Act, where the Civil Courts
are debarred from exercising jurisdiction in respect of matters mentioned therein.
It is observed that despite the bar/ouster of jurisdiction of the Civil Courts in
respect of a certain category of disputes, there is interference by the Civil Courts
in various slum redevelopment projects which has resulted in inordinate delays
being caused for the implementation of these projects.
90. In the aforesaid context, reliance is placed on a decision of this Court in
31
M/S Patel Construction v. Himasnhu Dwarkadas Ruparelia and others (First
31 .
2025 SCC OnLine Bom 2175
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th
Appeal No. 27 of 2014 by a unreported judgment dated 7 May 2025), wherein
a private landowner’s 2005 Slum Rehabilitation Scheme was stalled for more
than seventeen years by Civil Court’s injunction. Despite no fraud, the status quo
orders persisted, thereby highlighting the plight of the private landowners which
is occasioned by due to a lackadaisical adherence to the mandate of Section 42 of
the Slum Act and Section 149 of MRTP Act.
91. Mr. Munshi, further submits that there is now judicial recognition of the
preferential right which a landowner has to redevelop his own property in the
scheme of the Slum Act. He submits that this position has been given due
recognition in the judgment of a Division Bench of this Court in the case of
Indian Cork Mills (supra) and subsequently Bishop John Rodriques v. State of
Maharashtra (Supra). Both the said decisions have been now upheld by the
Supreme Court vide judgments dated 22 August 2025, respectively.
92. Mr. Munshi urges that in order to avoid any conflict in the smooth
functioning of the redevelopment in respect of private lands, it is necessary to
clarify that since the preferential right of the private landowner to redevelop his
own property has legal sanction, that, ispo facto , would entail curtailing of rights
which the society of slum dwellers or occupants presently exercise.
93. Further, Mr. Munshi places reliance on the Application of late
Intervenor/Applicant, Mr. Shirish Patel, to endorses twofold reform:
(i) To separate ownership of land from structure, limiting occupants to
possession rights only and the owner should be permitted to sell the
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structure only to the owner of the land at prevailing construction cost less
adjustment for deterioration.
(ii) On selling one’s premises, the occupant may recover only his cost
of construction at prevailing market rates less any appropriate amount for
deterioration of the construction.
94. In order to curb the above issues, Mr. Munshi makes the following two
fold suggestion:
(i) There should be clear and explicit, succinct guidelines either to be
notified by the SRA/ State or the Court in terms of a judicial
pronouncement, in order to act as an impediment to the smooth
implementation of Slum Rehab Schemes and should be followed by all
Courts and fora in the State of Maharashtra.
(ii) In a genuine case, if the Civil court or any fora under the Slum Act
does grant an injunction order, then there must be a provision whereby
there is finality accorded to that interim order within a specified stipulated
period which cannot be extended, so that any such actions which are filed
merely with a view to procrastinate do not achieve the objective of delaying
the implementation of Slum Rehab Schemes for unduly long.
(iii) That the body/society of slum dwellers/occupants should not have
a say in the appointment of a developer, if the private landowner is desirous
of undertaking the redevelopment of his own land by himself, either,
directly or indirectly.
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95. Dr. Milind Sathe, learned Senior Counsel and Mr. Khandeparkar, learned
Counsel have advanced submissions on behalf of NAREDCO West Foundation,
which is stated to be an apex national body for the real estate industry.
96. The learned counsel have, at the outset, highlighted the problems and
issues faced by the developers who are forced to pay retrospective rents to newly
eligible occupants, adversely impacting the cash flow of the project. It is because
of the delay in deciding the eligibility that becomes a ground for opposing
eviction by the slum dwellers, thereby causing delay in implementation of the
project. In this context, they would urge that such problems are further
aggravated at the level of the AGRC which is not able to hold regular sittings
causing significant delays. There are no timelines for certifying the eligibility of
slum dwellers or deciding appeals, which adds to the delay. The learned counsel
have relied on the affidavit filed by NAREDCO West Foundation and have made
the following suggestions:-
(i) The SRA should entrust development projects to the developers
depending upon their past experience as well as success in
implementation of projects of similar size. Some basic criteria ought to
be formulated to bid for slum scheme depending upon the size of the
slum, built up area, project cost and density in terms of clause 3.1.2 (a)
of the DCPR.
(ii) Only such developers ought to be selected to be permitted who have
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completed such projects of similar scale and minimum net worth of
the developer also to be duly considered.
(iii) There should be no further extension in the cut-off for the eligibility
of slum dwellers over and above that which is statutorily provided.
(iv) SRA ought to adopt a digitized platform like that of MCGM for
sanctioning proposals for redevelopment including establishing
procedure for a single window clearance.
(v) With regard to the vexed issue of apportionment of slum land between
rehabilitation area and sale area, there is no statutory formula or
percentage stipulated for bifurcation of land and area between the
rehab and sale area under the Slum Act. Any fixed ratio of
apportionment will create inflexibility in making the slum
rehabilitation scheme further unviable. To overcome this and the
situations where the developer has to provide buildable reservations
and shifting of reservations under Regulation 17(3)(d) of the DCPR
2034 read with regulation 9 of the DCPR, freedom of planning is the
need of the hour to ensure smooth implementation of slum projects.
(vi) Notice under Section 13(1) of the Slum Act must be issued within a
prescribed timeline for the landowners to act within such time frame,
failing which acquisition proceedings can be initiated against the
landowners who is causing hurdles against implementation of the
slum schemes.
(vii) Certification of Annexure - II ought to be completed by the
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competent authority in a time-bound manner.
(viii) Appeals under Section 35 of the Slum Act should be decided in a
time-bound manner. SRA must endeavour to implement
eviction/demolition within three months from passing an order under
Section 33 and 38 of the Slum Act.
(i) A comprehensive policy may be formulated between the Central
Government and the State Government in areas declared as slums or
slum rehabilitation area, along with SOPs in the context of grant of
consent by the State Government and its instrumentalities under
clause 2.8 of Regulation 33(10) of DCPR 2034. This provides for
NOC for building permission within 60 days after intimation of such
approval to the project is communicated by the instrumentality of the
State Government such as MCGM or MHADA.
Submissions on behalf of CREDAI-MCHI (Mr. Shardul Singh, Advocate)
97. Mr. Shardul Singh appearing for CREDAI–MCHI (Confederation of Real
Estate Developers Association of India – Mumbai) has addressed the Court on
the following aspects by placing reliance on an affidavit dated 30 September
2024 submitted by CREDAI-MCHI and made certain suggestions which are
summarized as under:-
Mr. Singh would submit that eligibility disputes are one of the largest
causes of delay. This is because Annexure – II is issued after prolonged scrutiny,
is amended repeatedly, and is often misused. Ghost entries and multiple
entitlements persist due to absence of cross verification. In this regard Mr. Singh
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would urge that Annexure – II should be issued only by SRA Deputy Collectors
using the GIS/biometric Auto Annexure System integrated with Aadhar, Voter
Roll, and Utility Records. Such draft Annexure – II should be published online
within a fixed objection window (45 days + limited condonation), after which
eligibility must be frozen. No resurveys should be permitted.
98. Mr. Singh has urged that despite Regulation 33(10) prescribing 60 days
for finalization of Annexure-II, this often exceeds 6 months to years, with
repeated amendments. Mr. Singh would suggest that Annexure-II must
exclusively rest with the SRA and Auto Annexure database should be relied upon
for seamless issuance.
99. Mr. Singh has flagged the issue of a developer securing a General Body
Resolution without financial or technical scrutiny. He would submit that
speculative players procure consents, trade in FSI, and abandon project midway.
In this context, he would suggest that SRA to prescribe basic eligibility criteria for
developers undertaking slum schemes. Such criteria should consider past
experience of the developers, while prescribing the eligibility rules.
100. Mr. Singh would then submit that rival societies on the same parcel/CTS
plot having splinter consent, triggering disputes or overlapping proposals and
since there are more than one developers/proposal, the fall-out is resultant
disputes which stalls the project. In this regard, Mr. Singh would suggest that a
Managing Committee should be appointed by a majority of not less than 51% of
the total population of the slum pocket, in the General Body Meeting, to be
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overseen by the SRA authority. SRA should blacklist such society members who
are not elected in the General Body meeting and no further
complaints/allegations should be entertained from such society.
101. Mr. Singh would then refer to the issue of consent often being
uninformed, coerced or disputed. Slum dwellers face language and literacy
barriers. A slum scheme can be initiated by minimum 51% consent, to mean 49%
would dissent. He would in this regard suggest that the developers in the
presence of the SRA officers should give complete disclosure to ensure informed
consent, which should be AV recorded e-consent, with insertion of biometric
verification and cool-off period. No individual complaints should be entertained
unless it is signed/supported by 1/3rd slum dwellers out of the entire slum
dwellers, in the slum scheme.
102. Mr. Singh would submit that appeal remains pending for years, as the
AGRC, GRC sit fortnightly, face quorum issues and are manned by
overburdened bureaucrats. In this regard, he would reiterate suggestions made
earlier of having a full-time tribunal with judicial members and a dedicated
registry. Mere filing of appeal ought not to operate as an automatic stay unless a
reasoned order is passed with conditions.
103. Mr. Singh would then flag the issue of a small minority often stalling
projects despite 95% consent and rent being offered. Eviction under Section 33
read with 38 of the Slum Act are extremely slow. To alleviate such problem Mr.
Singh would suggest that errant slum dwellers should face deferral of Permanent
Alternate Accommodation Agreements and the SRA should be held responsible
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for undertaking the eviction.
104. Mr. Singh would then submit that developers are compelled to pay
outstanding water and electricity dues of slum dwellers before granting
permission to the developers, which runs contrary to clause 1.13 of DCPR in
Regulation 33(10). Such dues according to Mr. Singh ought to be treated as
arrears recoverable from beneficiaries, post rehabilitation. Auto Annexure Data
could be used for cross-verification.
105. Mr. Singh has drawn this Court’s attention to relocation of religious
structures within schemes which presently requires approvals from different
department like Home, Urban Development, Police Department, causing 6 to 12
period delay. To mitigate this Mr. Singh has suggested that lawful religious
structures within slum rehabilitation schemes ought to be treated like
rehabilitation structures. There could be a single window clearance by the SRA
instead of going to multiple authorities to obviate the delays.
106. Mr. Singh has flagged another issue of rehabilitation building not being
properly managed, funds not used judiciously an infrastructure charges diverted.
In this regard Mr. Singh has proposed certain suggestions as below ;-
a) A portion of infrastructure charges must be ring-fenced for
rehabilitation upkeep and the corpus funds, must be audited
periodically.
b) Once the slum dwellers are handed over possession of the
respective units the onus of maintenance of the building
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should be with the slum society itself.
c) The infrastructure charges collected under Regulation 33(10)-
clause 9.2 from the developers should be utilized solely for
maintenance of rehab buildings, specifically the charges
collected on the rehab built up area for maintaining such rehab
buildings.
d) To address the issue of re-encroachment, it is suggested that re-
encroachers must be disqualified from being a part of any
scheme or future eligibility in any other scheme, for which the
State Government and SRA should frame stringent guidelines.
e) Environmental Clearance (EC) approvals are cumbersome
which delay the projects. It is suggested to establish a single
window cell with SOPs, stringent timelines and fast-track
clearances for slum schemes.
Submissions on behalf of Lakadawala Developers Pvt. Ltd. in IA/3024 of 2024
(Mr. Pravin Samdani, Senior Advocate)
107. Mr. Pravin Samdani, learned Senior Counsel has appeared for the above
Applicant/Intervenor and advanced submissions on their behalf. Firstly, as
background of the applicant, Mr. Samdani would state that the Applicant is a
company registered under the Companies Act engaged in the development of
real estate projects in Mumbai, having vast experience in rehabilitation schemes.
Mr. Samdani would refer to and rely on the Interim Application which is on
record, in the course of his submissions.
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108. The Applicant is undertaking a slum rehabilitation scheme on lands
situate in Goregaon (West) and Malad (West), Mumbai the details of which are
set out in IA, admeasuring 4417.96 sq. meters (approx.). In this regard, SRA
issued a Letter of Intent dated 11 April 2022 in favour of the Applicant to carry
out a slum rehabilitation scheme on the said land. It is during the course of the
said slum rehabilitation scheme that the SRA issued Circular No. 210 dated 1
August 2023. Mr. Samdani, placing reliance on the said circular would contend
that vide the said circular, the housing department Government of Maharashtra
has inter alia directed the SRA to ensure that the developers shall deposit two
years’ advance rent and post-dated cheques for rent of one year. Also, that the
Executive Engineer/SRA shall process the proposal of the developer for issuance
of LOI only upon the deposit of advance rent by the developer. The
Commencement Certificate for sale the component shall be issued in proportion
to the amount deposited by the developer.
109. Mr. Samdani would submit that the circular is to be applied retrospectively
by the SRA. It imposes unreasonable conditions on the developers which would
render most of the slums schemes unviable, resulting in horizontal and vertical
expansion of slums. Mr. Samdani, in this context, would submit that unless the
slum is vacated within a specific and definite time period from the date of
deposit, the project will become unviable.
110. Mr. Samdani would refer to the judgment of the Supreme Court in Yash
Developers (supra), more particularly, paragraph 56(v) of the said decision. He
would contend that the first portion of the said paragraph which deals with the
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obligation to provide transit accommodation to slum dwellers pending
redevelopment is something that has been covered by the said Circular No.210
(supra). However, the second portion of paragraph 56(v) of the said decision
which deals with the refusal of the slum dwellers to vacate has not been
addressed.
111. In the above backdrop, Mr. Samdani makes the following suggestions:-
(a) There ought to be some definite timeline/time period within
which the slum is vacated from the date of deposit of rent as
prescribed in Circular No.210 dated 1 August 2023, failing which
the project will be rendered unviable. This is also necessary to
facilitate swift implementation of the slum rehabilitation scheme.
(b) When the developer/s comply with the provisions and mandate of
the said circular dated 1 August 2023 and deposit of rent in
compliance thereof, there ought to be some safeguards in place so
that the developer/s are reasonably secured. Further, the SRA
ought to provide some incentives in terms of issuing the
Commencement Certificate and/or other permissions qua the sale
component in slum rehab schemes, in a timely manner. Revised
Letters of Intent may be issued whereby these conditions or
safeguards are included so as to balance and protect the interest of
developers, as well.
(c) The SRA ought to devise a mechanism to deal with the issue of
reluctance on part of the slum dwellers to vacate the premises on
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the ground that the transit accommodation is either inconvenient
or the amount offered is insufficient. This is to facilitate speedy
and effective clearance of a site where such a scheme is
undertaken and to ensure due compliance with the second part of
paragraph 56(v) of the decision in Yash Developers (supra) . In
this regard, the plea of inheritable tenancy which is often raised,
ought to be done away with, to make sure that the slum rehab
schemes are implemented in an effective and timely manner and
taken to its logical conclusion.
Submissions on behalf of Shree Azad SRA CHS. Ltd. (Mr. Altaf Khan,
Advocate:
112. Mr. Altaf Khan, learned counsel has made submissions on behalf of Shree
Azad SRA CHS Ltd. (Society). Mr. Khan submits that there are several glaring
deficiencies in the existing framework of SRA, which have led to persistent
delays, disputes, and hardships to the stakeholders, including slum dwellers and
developers.
113. The Court’s attention is drawn to various issues faced by the slum dwellers
and developers which, according to the applicant, are not being addressed under
the existing mechanism of the SRA. It is submitted that the scheme does not
prescribe the uniform method for fixation of transit rent to be paid to slum
dwellers, leaving the matter entirely to the developers resulting in disputes, and
multiplicity of litigation before SRA and this court.
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114. It is next submitted that there are drawbacks in quality control and
accountability mechanisms, post-construction of rehabilitation buildings. Poor
construction quality, absence of technical audits, and lack of maintenance
oversight threaten to convert vertical slums into future hazards.
115. Also the existing process of formation of societies and appointment of
developers is largely developer-driven. The initial Special General Body Meetings
(SGBMs) are frequently organized and influenced by developers themselves,
often without the supervision of SRA officers allowing manipulation of records
and consent forms.
116. On the issue regarding the qualification of the developers, it is submitted
that, developers with inadequate financial capacity or experience are often
appointed for large scale projects without genuine verification of their solvency or
expertise.
117. Mr. Khan further emphasizes on the issue of protection and rehabilitation
of slum dwellers. He further submits that, the actual occupier of dwelling
structures, in existence on or prior to 1 January 1995 were protected and were
entitled for rehabilitation/relocation. Mr. Khan has placed reliance on decision of
this Court in the case of Janhit Manch Vs. State of Maharashtra (supra) in which
it was held that the cut of date 01.01.1995 shall not be extended further, although
this remained only on paper.
118. According to Mr. Khan the grievance redressal mechanism under the SRA
Act including the Apex Grievance Redressal Committee (AGRC) and Grievance
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Redressal Committee (GRC) is currently ineffective. The Committees assemble
on an average 12 to 13 times a year resulting in huge backlog of cases and urgent
matters are not listed promptly, resulting in pendency and multiplicity of
litigation.
119. It is next submitted that the construction and planning of rehab buildings
and that rehab buildings are not constructed in time, for instance in some cases
the delay exceeds 20 years. Slum Act and DC Regulation are silent on the equal
distribution of the plot between the rehab component and the sale component,
which confers an advantage to the developer for using major/larger portion of the
land for his sale component, which is not in the larger public interest.
120. It is submitted that, under the original DCR, 1991 there was no provision
for parking with respect to Rehab Buildings in the Reg – 33(10). The Slum
Rehabilitation Scheme having residential entitlement of carpet area 20.90 sq.
metre, was introduced in DCR, 1991 vide amendment dated 12/08/2009
wherein one parking space for every eight tenements having carpet area up to 36
sq. metre each was provided. The Court’s attention is drawn to SRA Circular no.
104 (no. SRA/ENG/7313/Gen) dated 10/11/2009 to submit that, the said
circular prescribing parking guidelines lacks the backing of law and runs contrary
to the intent of the delegated legislation. Mr. Khan further submits that, the
existing model of parking provision under DCPR, 2034 has widened the socio-
economic gap and has failed to meet future needs of slum dwellers who are
potential vehicle owners.
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121. In the above backdrop, Mr. Khan has made the following suggestions:-
a. A Special General Body Meeting for the implementation of the
slum rehabilitation scheme should be called by the slum dwellers
for the appointment of the developer. In the event that SRA fails
to appoint a developer by the tender process, the society on basis
of the Special General Body Meeting should immediately
communicate to the SRA. The SRA shall then scrutinize the
tenders and call for a Special General Body Meeting in presence
of an authorized officer who shall explain the S.R. Scheme to the
slum dwellers and further appoint a developer on basis of
majority decision as, per extant laws.
b. To fix the minimum transit rent based on location and other
factors in consultation with stakeholders, minimum 5%, with a
year wise increase to be implemented strictly and such condition
should be recorded in LOI. The registered Tri-partite Agreement
between the Developer, the Society and the Slum Dwellers
should be executed at the time of appointment of developer.
c. At least four dedicated SRA officers should handle rent and
lottery issues to ensure timely disposal of complaints. Any
complaint/grievance of rent should be decided on priority and if
any default is found on part of Developer it should be followed
with ‘Stop Work Notice’. Interest of 12% per annum should be
made payable on delayed payment of transit rent and that
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expeditious adjudication of applications of transit rent within a
time bound manner, preferably within 30 days.
d. A squad team consisting of three officers must be formed for
quality assessment of construction. Such team must also grant
quality certificates. Upon confirmation of low quality
construction, the developers / builders must be held accountable
and compensation must be paid to either to SRA for Rehab
Building or to Society.
e. The eligibility criteria of the developer shall be only those who
have had a minimum experience in the field of redevelopment
for 3 years having a financial capacity that is verified by the SRA.
Developers should be prohibited from entering into any Joint
Venture without the prior approval of the SRA and the society.
f. Retired High Court judges should chair the AGRC and retired
District Court judges the GRC. Regular sittings and hybrid
hearings should be ensured. A digital dashboard should be
created to display the pending and disposed of cases.
g. SRA shall ensure an equal 50% - 50% distribution of land
between the rehab and sale components.
h. Developer shall deposit a corpus fund, share fungible FSI
benefits equally between rehab and sale portions, and execute
leases or deemed conveyances before issuance of occupation
certificates.
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i. Before eviction, SRA shall ensure payment of 22 months of
advance transit rent in addition to 11 months post-dated cheques
to those eligible and 11 months rent to non-eligible slum
dwellers.
Submissions of learned amici :-
122. Mr. Khambata, along with Mr. Sharan Jagtiani, learned senior counsel, and
Ms. Naira Jeejeebhoy, learned counsel appointed as amici, have taken strenuous
efforts to present the issues before the Court in an appropriate perspective, in the
light of what has been held by the Supreme Court in Yash Developers (supra).
123. At the outset, Mr. Khambata, relying on the decision of the Supreme
Court in Yash Developers (supra) as also the decisions in Galaxy Enterprises
(supra), Indian Cork Mills Pvt. Ltd. (supra), Bishop John Rodrigues (supra),
Saldanha Real Estate Pvt. Ltd. (supra), Tarabai Nagar Cooperative Housing
Society (supra), State of Maharashtra vs. Shri Mahadev Pandharinath Dhole
(supra) and Jilani Building at Bhiwandi vs. Bhiwandi Nizampur Municipal
Corporation and Ors.(supra), submitted that in all these decisions, the Court has
expressed multitudes of concerns in regard to the implementation of the Slums
Act and the lacunaes, which are required to be redressed by the State
Government. Mr. Khambata’s concern would be although the Slums Act was
envisaged as legislation providing ad-hoc solutions to ad-hoc problems, as
observed in State of Maharashtra vs. Shri Mahadev Pandharinath Dhole (supra),
however, the dream as envisaged in the said decision as far remained to be
fulfilled. It is submitted that there are several issues concerning the classification
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of slums and the effective and efficient management of their rehabilitation.
Although the expansion of large slum areas could be restricted, they have now
reached alarming proportions. Mr. Khambata has placed on record suggestions in
a tabular form identifying specific issues, the causes of such problems, the
relevant statutory framework/guidelines or decisions, the proposed measure/
solution and whether such solution would require amendment by legislature. In
such event, the question arises as to what proposals may be made to address
legislative flaws and what the views of the Slum Rehabilitation Authority (SRA)
are on these issues. At the outset, it may be noted that the following specific
issues/problems have been identified:-
i. Suggestions on identification and declaration of land as slum;
ii. suggestions for identification of slum dwellers;
iii. Suggestion for selection of developers;
iv. Suggestions for apportionment of slum land between
redevelopment and sale area;
v. Suggestions regarding obligation to provide transit accommodation
to the Slum dwellers pending redevelopment.
vi. Suggestions regarding lack of independence and objectivity in
functioning of statutory authorities;
vii. Suggestions regarding effectiveness of statutory remedies;
viii. Suggestions pertaining to miscellaneous issues.”
124. In relation to the aforesaid issues, Mr. Khambata has also submitted, in
tabular form, the causes of the problems, the relevant existing statutory sections,
regulations, rules, circulars, guidelines and/or judgments, proposed measure/
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solution, whether proposed measure/solution requires amendment of law by
legislature, proposal for legislative reforms and the comments on views and
suggestions of the SRA. We must appreciate that the information, as placed on
record in tabular form ought not to be disturbed in any manner, as it gives a
complete view of such issues and the valuable suggestions made on the proposed
course of action. We are, therefore, of the opinion that the suggestions should
form part of this judgment.
Suggestions:
125. The following are the suggestions as made by the learned amici :-
“I. DECLARATION OF SLUMS AND RIGHTS OF LANDOWNERS
A. Balancing of Rights of owner with that of reasonable public
housing for slum dwellers:
1. No ownership rights to slum dwellers: Suggestion to form a
32
‘community land reserve’ may be adopted with a few modifications as
suggested herein. Ownership rights need not be transferred to slum
dwellers. Allotment can be permanent but should not translate to
ownership. The DCPR provisions conferring ownership rights on
hutment dwellers in rehab tenements should be amended.
2. Housing arrangements: Identified slum dwellers should be given
housing in rehab tenements for the duration while working in the City
either free (for protected occupants) or on rent (for other cases). Any non
32 Pg. 393, Annexure A, Item 8, Affidavit on behalf of Shirish Bhailal Patel, Compilation of Affidavits
-1.
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protected occupants should be made to contribute financially for alternate
accommodation as envisaged by the Maharashtra Slum Act.
3. Succession rights: After death of original occupants, heirs should be
entitled to continue subject to payment of rent at similar rates as non-
protected occupants.
4. Reversion mechanism: If slum dwellers or their heirs wish to give
up the tenement, it should be transferred back to the community land
reserve.
5. Implementation: These provisions should be implemented by way
of Rules under Section 46 of the Maharashtra Slum Act and through
amendments to DCPR.
33
B. Private Lands - Protecting Landowner Rights :
To make Section 13(1) of the Maharashtra Slum Act meaningful, the
following suggestions are made:
6. Specific notice to private landowner: The current scheme of
publishing a stakeholder-wide notice must be modified to include specific
34
notice furnished to the private land owner . The SRA policy of pasting a
notice on site, publishing a notice in newspapers as per Circular No.198
dated 26.04.2021 (Table I, Pg. 17, Sr. 13) ought to also continue.
33 Despite judicial recognition of landowners' preferential rights to redevelop slum-declared land,
there are repeated instances of improper acquisition without adequate notice under Section 13 of the
Maharashtra Slums Act. See section 3B(4)(c) and (e) and section 13(1) falling under Chapter I-A of the
Maharashtra Slums Act; See also Bishop John Rodrigues v State of Maharashtra, Writ Petition No. 1212
of 2022, the Court (G.S. Kulkarni & Jitendra Jain, JJ.) which cites Gulabdas Shah v. State of Maharashtra,
2011 (1) Mh. L. J, and Indian Cork Mills Pvt. Ltd v The State Of Maharashtra & Ors.,2018 SCC OnLine
Bom 1214. (Paras 84, 85, 97 and 130)
34 See recommendations of Nagardas Dharsi Bhuta Charities, Table VIII, Pg. 137, Sr. 7
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7. No Clubbing of Notices: There should not be any clubbing of the
notice under Section 13 with that under Section 14 of the Maharashtra
Slums Act or any deemed notice. In case Section 14 process has begun, it
must be stayed until proper notice is given under Section 13 of the
35
Maharashtra Slum Act.
8. Standardized notice format: A standardized format of notice must
be prescribed by the SRA and published on its website, including the date
by which the owner's proposal should be submitted.
9. Commencement of 120-day period: The stipulated 120 day period
must begin from proof of service given to the owner.
10. Title disputes: In case of title disputes, if the SRA cannot determine
the real owner, the owner whose name is stated on the property card must
be served with notice.
11. Priority of owner's rights: In case of competing claims, owner's
right must be given priority over the right of occupants, unless the owner
36
does not have any bona fide interest in redeveloping the land.
12. Time-Bound Implementation: In the event that the owner, who has
exercised his preferential right, does not adhere to the prescribed time
frame, Section 13(2) should automatically follow, followed by the
procedure prescribed under Sections 14 to 17 for acquisition of the land
for a public purpose from the owner.
35 See Suggestions by Bright Ability and Awareness Foundation (T-1), page 109 of Consolidated Table
36 Therefore, the Court ought to consider the conduct of the landowner to assess the same. [see Deena
Pramod Baldota v State Of Maharashtra, 2022 SCC OnLine Bom 5102].
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C. Government-Owned Lands:
In light of the public trust doctrine enumerating that Government lands
are public resources held in trust by the State, it is suggested that:
13. Accountability and prevention of further encroachment: A list
should be prepared marking free/open land as on date and State
authorities should be held accountable for ensuring no encroachment
takes place.
14. No veto power for occupants: In case of redevelopment on public
land, no veto power should be given to occupants.
15. Transparent tendering: When private-public partnerships are
resorted to, the government must adopt a fully transparent process by
publishing public tenders.
16. Community housing stock: The State should benefit from the
development potential of the land by having part of the redevelopment
potential used to create community housing stock, over and above the
rehabilitation of occupants.
17. Best deal for State: The tender should be awarded to a Developer
who is not only technically and commercially sound but is able to provide
the best deal for the State.
18. Community land reserve on public land: The DCPR may be
amended to provide that even public land should be used for creation of a
community land reserve instead of leasing the land to the Society of slum
dwellers and reversion of tenements to the pool of public housing.
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37
II. DELAYS AND AUTOMATIC TERMINATION PROVISIONS
19. Mandatory Time-Bound Completion: All letters of intent and
agreements must mandate timely stage-wise completion of slum
rehabilitation schemes.
20. Automatic Application of Section 13(2): In the event of default in
adhering to stipulated timelines (unless extended by court order), the SRA
should take action under Section 13(2) as an absolute rule to substitute
the developer. To leave room for some unforeseen circumstances, it would
be open to the developer to approach the CEO, SRA to extend the
relevant milestone after passing a reasoned order. However, such an
application should only be entertained in case the CEO, SRA is
approached prior to the deadline of the milestone.
38
III. DENSITY AND APPORTIONMENT
39
21. Maximum Tenement Density : DCPR 33(10) should be suitably
amended to insert a maximum tenement density in keeping with
sustainable development principles and to ensure rehabilitated slum
dwellers are provided access to basic amenities. The regulation should
37 Despite statutory provisions and judicial precedents, delays in implementation of slum rehabilitation schemes
by owners and developers are not being adequately addressed. Of 578 applications received under Section 13(2), 372
remain pending. See Susme Builders Pvt Ltd v Chief Executive Officer, Slum Rehabilitation Authority (2018) 2 SCC
230, para 45; Galaxy Enterprises v State of Maharashtra – 2019 SCC Online Bom 897, para 60
38 This Hon’ble Court in State of Maharashtra v Shri Mahadeo Padnharinath Dhole AIR 1980 Bom 348, para 22
has held that the objective of the Maharashtra Slum Act “22...also is to provide to the slum dwellers at large certain
basic necessities such as water, sanitary arrangements, light etc” and rehabilitation in proper buildings. However, the
current scheme for redevelopment of slum areas does not achieve the avowed objective of rehabilitation of slum
dwellers in proper buildings. Notably, the proviso to Regulation 33(10)(6.15) and Regulation 33(10)(6.16) and (6.17)
enables relaxations in building requirements that may be provided by the CEO, SRA. The lack of apportionment of
FSI between the rehabilitation component and the free sale component, has enabled disproportionate apportionment
of slum land to the free sale area and consequent deprivation to the rehabilitation component.
39 The current framework does not achieve the objective of providing slum dwellers with proper buildings and
basic necessities. Regulation 33(10)(3.12A) only prescribes a minimum tenement density without prescribing a
maximum density, leading to heavy congestion. Rehabilitation tenements are often squeezed into 25 to 35 percent of
slum land in buildings hosting up to 6,000 to 6,500 tenements per hectare.
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prescribe a maximum density in line with DCPR 30[B] and the National
Building Code of India, 2016 rather than prescribing a minimum
tenement density.
22. Building Safety Standards and Fire Protection: Slum rehabilitation
schemes must enforce the safety measures prescribed by the National
40
Building Code (NBC) The CEO SRA cannot be permitted to grant
relaxations in building norms that compromise the safety of the rehab
41
components . Accordingly, it is suggested that:
a. No relaxations to the minimum distance of 6m between two rehab
buildings under Regulation 33(10)(6.8) should be permitted
b. Fire protection requirements as per DCPR 47 should be
mandatory.
c. Lighting and ventilation requirements provided under Regulation
40 of the DCPR should be made mandatory to slum rehabilitation
projects.
d. The open space requirement under Regulation 33(10) should be at
par with the requirements under the DCPR as applicable to general
42
building constructions
40 The Supreme Court in Avinash Mehrotra v Union of India (2009) 6 SCC 398 applied Article 21 and 21A to
direct State Governments to ensure that all government and private schools were constructed according to the safety
norms incorporated in the NBC. This constitutional logic must extend with equal force to slum rehabilitation
housing.
41 The Supreme Court in Municipal Corporation of Greater Mumbai & Ors v Kohinoor CTNL Infrastructure
Company Pvt Ltd (2014) 4 SCC 538, has expressly found that relaxations in building permissions cannot be
permitted at the cost of providing the required public amenities and at the cost of safety to be afforded to inhabitants
of Mumbai.
42 The DCPR demands open space requirements of 15 to 25 percent depending upon the plot area.
However, Regulation 33(10)(6) reduces this requirement to 8 percent without any justification, which
may be further relaxed by the CEO SRA under Regulation 33(10)(6.17)
.
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e. No relaxation should be granted where it adversely affects safety,
fire safety and public safety, and planning norms established for safety
cannot be compromised.
f. Any relaxations as to building constructions should be made only as
per Clause 6.17 of DCPR 33(10), which are provided only to make the
scheme feasible with reasons to be recorded in writing.
23. Apportionment of Land between Rehab and Sale Components:
Specific norms for apportionment of FSI between the rehab component
43
and sale component ought to be provided for :
a. Either a fixed ratio be provided for under the DCPR or the factors
relevant for determination of this ratio be defined in either the
Maharashtra Slum Act or DCPR 33(10).
b. The apportionment between rehab component and free sale
component ought to be made in such a way that the rehab component
complies with suggestions as to maximum density and non-waiver of basic
amenities, fire safety etc.
24. Developer’s Entitlement – Conditional on Compliance: Under the
Maharashtra Slum Act read with Regulation 33(10) of the DCPR, the
developers' entitlement to FSI and the free sale component should be
expressly recognized as conditional upon fulfillment of obligations to
eligible slum dwellers. A failure to fulfill those obligations should be
treated as a failure of consideration. Developers are a means to serve
43 See The Aflzarpurkar Report contained recommendations as to appointment at para 15.9 (pg.44 of
the Report)
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public welfare purposes, not ends in themselves.
25. Adequate checks and balances to protect bona fide third party
purchasers: Developers should be granted right to free sale area
proportionate to the stage of completion of the project and should not be
permitted to sell any part of the free sale area in excess thereof.
III. IDENTIFICATION OF SLUM DWELLERS
44
26. Cut-Off Date Freeze :
a. The cut-off date cannot be extended by way of a circular and
should not be further extended.
b. Instead of extending the cut-off date, a procedure providing for
rehabilitation of non-protected occupants at nominal cost should be
implemented.
45
27. Time-Bound & Streamlined Process for Annexure II :
a. Time bound preparation: The procedure for preparation of Auto
Annexure II should be initiated and completed at the stage of Section
3(C)(1) itself by the SRA/Deputy Collector to enable simultaneous
preparation at the time of declaration of land as slum area.
b. Time bound Appeals: A time period of 30 days should be
prescribed for filing Appeals and these should be disposed of within 60
44 The cut off for giving status of protected occupier for a dwelling structure who will eventually be eligible for
rehabilitation was initially 1985 and was subsequently revised to 01.01.1995 and thereafter to 01.01.2000 and recently
to 01.01.2011 by the State government under the sub-regulation VIII (3.12) (C) of Regulation 33(10) of DCPR 2034.
The Afzulpulkar Committee Report categorically emphasized the need for freezing the cut-off date without any
extension (Chapter 2, Pg. 14-15 of Afzulpulkar Committee Report).
45 SRA vide its Circular No.217 dated 12th February 2024 directed all Competent Authorities to generate
Annexure II only by using Auto Annexure II application and further Deputy Collector / SRA / Engineering
Department of SRA shall not accept and act upon any manually prepared Annexure II. However, the aforesaid
Circular however does not provide for completion of issuance of Auto Annexure II in a time bound period.
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days.
c. Mobile linking: Mobile numbers of slum dwellers should be linked
to send draft and final Annexure II to them so they are aware of their
eligibility status.
d. No undecided eligibility: In Annexure II, eligibility should not be
kept undecided (sometimes kept pending for decades).
e. Spouse and occupants: Names of spouse (husband and wife) and all
actual occupants should be mentioned in Annexure II.
f. Subsequent purchasers: Subsequent purchasers after issuance of
Annexure II who have actually occupied/resided in slum structure should
be considered for eligibility (as per G.R. dated 16.05.2015 and
16.05.2018).
g. Professional management agency: SRA can appoint a professional
agency to guide slum dwellers, and fees for the same can be partly
recovered as scrutiny charges for eligibility.
28. Satellite survey of Slum Plots: should be done periodic, to prevent
further encroachment. Subsequent purchaser after issuance of Ann – II
who have actually ‘occupied / resided’ in slum structure, should be
considered for eligibility.
29. Definition of "Dwelling Structure": The State government should
clarify under the definition of "dwelling structure" u/s. 3X(a) of the Slum
Act whether structures above ground floors are "dwelling structures" or
not.
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30. Centralized Master List: Information should not only be
centralized but consolidated into a Master List of beneficiaries that is
publicly available like the Electoral Roll to help weed out duplications in
different slum pockets and eliminate bogus slum dwellers from taking
benefit under multiple schemes.
31. Biometrics and Identity Card:
a. Biometric survey for identification of number of exact slum
dwellers of particular plot and integration of the same with central data
base is required irrespective of the Authority preparing Annexure II.
Disciplinary action should be initiated against the officer not following
the law
b. After issuance of letter of Allotment to the slum dwellers, SRA
should also issue ‘Identity Card’, to the allottee having photograph and
biometric data of Husband, Wife and other family members of allottee.
IV. SELECTION OF DEVELOPERS
32. Constituting a Pre-Identified Panel of Developers: The Bombay
High Court suggested replacing the existing scheme with a system of
46
having a pre-identified panel of bona fide and reputed developers , which
the SRA is implementing and should be followed so that there is a pre-
identified list of developers from which slum dwellers can choose a
developer. This would also streamline debarring/blacklisting defaulting
developers.
46 Galaxy Enterprises v. State of Maharashtra & Ors. (2019)5 Bom CR 43, paras 3-5,65
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33. Selection on objective criteria: The final decision on the Developer
should not be left with the CHS. There should be objective criteria on the
basis of which the Developer should be appointed by the SRA after taking
into consideration the views of the CHS and keeping in mind the public
trust doctrine. The selection of Developer should be completed in a time
bound manner.
34. SRA-Facilitated Tendering: The SRA has indicated it will formulate
and publish guidelines on floating tenders and criteria to consider in
47
selection of a developer.
48
35. Financial and Technical Scrutiny of Developers :
a. SRA has already suggested and implemented measures in this
regard. A graded scheme should be implemented requiring greater
experience, minimum net-worth and cash in hand as the RERA carpet
area of the project increases. All empanelled developers should be in the
real estate development business for more than 5 years
b. The SRA's empanelment form (which requires details of past
projects, awards, financial statements, etc.) should be incorporated with
existing Annexure III requirements under Circulars Nos. 144, 144A and
the Ease of Doing Business Manual.
36. Notification Before Third-Party Financial Bailouts: SRA should
introduce a new policy/circular whereby no developer should be permitted
47 Item 19, Point 2, Suggestions of the SRA, Pg. 72, Table summarising suggestions of the SRA
48 In Yash Developers v. Harihar Krupa CHS 2022 SCC OnLine Bom 3712 it was suggested that the
SRA rigorously scrutinizes the selection of a developer on its financial and technical capacities through a
scientific mechanism, in order to identify a bonafide developer with fullest abilities.
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to enter into an agreement with a third-party or joint-venture without
notifying the SRA.
37. Stalled Projects - Auction Process: The SRA has indicated it is in
the process of formulating a scheme for auctioning stalled projects through
a ward-wise, e-tendering process.”
Submissions on behalf of SRA (Dr. Birendra Saraf, Advocate General)
126. D r. Saraf, learned Advocate General has made extensive submissions as
also has filed written submissions in two parts, namely, Part 1 and Part 2. The
submissions of Dr. Saraf on the distinct topics are as follows:-
(i) Background in relation to the Slum Act – In setting out the factors
leading to the enactment of the legislation, it is submitted that the creation of
slums in urban areas was due to numerous factors. The rapid expansion of
industries led to a significant migration from rural areas to cities, which was
also due to rural regions being unable to meet the livelihood needs of people
who primarily depended on agriculture and related activities. Such
migration caused overcrowding in urban areas and a shortage of housing,
which, in turn, led to the development of large slum areas, particularly in
Greater Mumbai and other urban regions in Maharashtra. The housing
requirements in the urban areas could not meet the rapid development in
urban activities. Such large scale and rapid immigration also led to
encroachment of open public lands. Also, the apathy of the private landlords
to prevent encroachment and to ensure the appropriate use of land led to
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slums mushrooming on private lands. The proliferation of slums also raised
serious concerns in regard to the safety and health not only of the slum
dwellers, but also of the society at large. Although multiple municipal laws
were in operation, there was no uniformity in the provisions of these
enactments coupled with insufficiency of the provisions to improve the
situation in regard to slums. It is for such reasons that the legislature thought
it appropriate to enact a special law to deal with the improvement, clearance
and development of slum areas leading to enactment of the Slum Act in the
year 1971. The object, inter alia, being to make better provision for the
improvement and clearance of slum areas in the State and for redevelopment
as also for the protection of occupiers from eviction and distress warrants.
The Slum Act was brought into force on 11 August 1971. The legislation
casts various duties on the authorities. The Slum Act was substantially
amended in the year 1996-97 and 2001 inter alia to introduce Chapter I-A
and amendments.
(ii) Legislative history of the Slum Act – Under this heading, the
learned Advocate General has referred to the Central Act, namely, the Slum
Areas (Improvement and Clearance) Act, 1956. The backdrop for enactment
of the said legislation was considered and elucidated by the Supreme Court
in the case of Sanyukta Sangharash Samiti vs. State of Maharashtra (supra),
wherein the Supreme Court made the following observations:
4. Very little attention was paid to the slum dwellers in their initial
period during the late 19% century and early 20% century, during colonial
Rule. After the 1896 bubonic plague the Government recognized the need
for improvement in the housing and sanitary conditions, in the city. This
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resulted in the formation of Bombay Improvement Trust (for short ‘BIT’)|
in 1898, and later Bombay Development Department (for short ‘BDD') in
the year 1920. BDD in particular, inter alia , had a mandate to construct
low-cost houses for the workers who were manning the factories and the
mills in the city; and for the workers in ports and railway station as well. All
the same, not much was done by these bodies as far as improvement of
living conditions of the workers in these areas or for providing them with a
decent housing or sanitary conditions.
5. With independence, initially the approach of the authorities towards
slums was also largely focused on clearing the slum areas, rather than
improving their conditions. The Slum Areas (Improvement and Clearance)
Act, 1956 was enacted by the Parliament for declaring the areas as slum
area, and clearing it. The competent authority could declare an area as a
slum area and would thereafter pass demolition or clearance orders. There
was no purposeful welfare, socially sensitive, provision in the Act for
redevelopment of the area after its clearance and this was left to the
satisfaction of the competent authority, which may redevelop an area,
subject to his or her satisfaction (see Section 11 of the Act).”
127. In line with the Central legislation, it is contended that the said Slum Act
was conceived by promulgation of the Maharashtra Slum Areas (Improvement,
Clearance and Redevelopment) Bill (Bill No. XXV of 1970), so as to formulate a
comprehensive legislation to deal with slums in Maharashtra. After the
suggestions of the report being invited from the Committee constituted to make
submissions on the bill, the Legislature enacted the Slums Act in the year 1971
contemplating appointment of Competent authority for supervising the
enforcement of the Slum Act, rehabilitation and improvement works. At the
relevant time, there was no provision for a rehabilitation scheme as also the
Development Control Regulation 1967 did not have any provision regarding
implementation of a slum rehabilitation scheme. On such backdrop, to establish
a separate Board for carrying out the works of improvement in the areas of the
slums, the Maharashtra Slum Improvement Board Act, 1973 was enacted. The
joint application of the Slum Act and the Maharashtra Slum Improvement Board
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Act, 1973 had fell for consideration of the Division Bench of this Court in State
of Maharashtra vs. Mahadeo Pandharinath Dhole (supra).
128. It is submitted that despite the said enactments, it was observed that the
slum proliferation was not curbed effectively and there was no comprehensive
Slum Rehabilitation Scheme setting out the parameters of works of improvement
or redevelopment. It is stated that the initial focus of the Government in
enactment of the Slum Act was on identifying and declaring slum areas of
Maharashtra, for which extensive surveys to map out slum locations and assess
the living conditions within these areas were undertaken. Thus, the first phase of
implementation of the Slum Act involved the preparation and execution of
improvement schemes aimed at providing basic amenities and improving the
overall living conditions in slum areas. The progress was, however, felt relatively
slow due to several challenges, including bureaucratic inefficiencies, limited
financial resources, and the “sheer scale” of the problem. The improvement of
slum areas, despite efforts, proved to be a daunting task. The conditions of the
slums were so dire that improvement alone was not sufficient, necessitating the
clearance and redevelopment of entire slum clusters. These challenges faced
during this phase underscored the need for a more robust and coordinated
approach to slum redevelopment. In such context, significant observations were
49
made by this Court in Janhit Manch v. State of Maharashtra , which read thus:-
“71. Slums and Slum TDR and 1977 Slum Rehabilitation Amendment:
i. Slums have been a problem in Mumbai occasioned by the State's inability
protect public lands from encroachment. This administrative failure is
49 2006 SCC OnLine Bom 1145
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occasioned by Vote Bank Politics. Consequently, the same has reached an
alarming situation and is posing a great threat to Mumbai's Planning and its
already inadequate infrastructure. Living conditions in the slums are
unhygienic and pose a great threat to health, though now, facilities like tap
water, garbage clearance, electricity and toilets have been provided.
According to the estimates, the number of persons who live in slums ranges
between 50% to 60% of the city's population. A number of schemes have
been devised like slum improvement, slum upgradation under the World
Bank Project and also redevelopment schemes by granting FSI upto 2.5.
The last scheme has given scope for societies of slum dwellers and
developers to develop slums which are commercially viable. However,
despite all these measures adopted the problem remains unresolved. The
problem required a solution which would run across the board. It appears
that it is in this background that the Government of Maharashtra, proposed
a new slum policy.”
(emphasis supplied)
129. A reference is made to a study group which was formed to consider
changes to be introduced to improve the operation of the Slum Act, under the
guidance of Mr. Dinesh Afzalpurkar, as formed by the State Government. The
study group made recommendations for the changes to be introduced in the
Slum Act for its better implementation. In pursuance thereto, Chapter I-A was
introduced under the Slum Act, which formed the Slum Rehabilitation Authority
(‘SRA’) as the sole dedicated authority for implementation of slum schemes in
Mumbai. Simultaneously, with the enactment of Chapter I-A, various other
amendments were incorporated granting primacy to the SRA, including by
bringing about amendment to the Maharashtra Regional and Town Planning
Act, 1966 (MRTP Act) [Section 2(19), Section 37(IB), Section 152], Mumbai
Municipal Corporation Act (MMC Act) [Section 144(B), Section 354(AAA)].
th th
130. Between 17 April, 1996 and 25 April, 1996 the Slum Rehabilitation
Authority invited objections and suggestions to the general slum rehabilitation
scheme for Greater Mumbai. By a notification issued by the SRA under Section
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37(1-B) of the M.R.T.P. Act, objections and suggestions were invited by the
S.R.A. to the proposed modifications in the D.C. Regulations including the
insertion of a proposed Appendix VII-B. After a further round of inviting
objections and suggestions in August 1996, the Development Control Regulation
33(10) was amended with effect from 15 October 1997. Thereafter, on 19 April
1998 the General Slum Rehabilitation Scheme for Greater Mumbai was
approved by the SRA and notified.
131. Chapter I-A substantially changed the manner of redevelopment of slums
in Mumbai. The significant impact of introduction of Chapter I-A was
50
considered by this Court in Pooja Enterprises v. C.E.O., S.R.A and in Tulsiwadi
Navnirman Coop. Housing Society Ltd. v. State of Maharashtra (supra).
132. In his written submissions, learned Advocate General has set out in
extenso the scheme of the Slum Act as contained in various chapters. An
emphasis is laid on Chapter I-A and Chapter I-B, in the context of establishment
of the Slum Rehabilitation Authority as also identification of slum rehabilitation
areas, identification of slum dwellers, selection of developers and declaration of
general slum scheme as per Section 3-B of the Slum Act. It is stated that on 19
April 1998, a General Slum Scheme in accordance with Chapter I-B of the Slum
Act was published by the SRA setting out the parameters of implementation of
the Slum Rehabilitation Scheme. A reference is made to Development Control
Regulations 1991 and the present Development Control and Promotion
Regulations 2034. It is stated that prior to the notification of the general slum
50 (2000) 3 Mah L] 147
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scheme, the State of Maharashtra on 25 March 1991 notified the Development
Control Regulation 1991 (DCR 1991) in which Regulation 33(10) of the DCR
1991 read with Appendix IV set out the rights of the hutment dwellers in slum
schemes, the requirement of building permissions and relaxations which may be
granted for planning purposes, computation of rehabilitation and free-sale
component, provision for transit camps, constructions of commercial tenements,
etc.
133. It is stated that in the year 2018, the Development Control and Promotion
Regulations 2034 (DCPR 2034) were notified. Regulation 33(10) governs the
Slum Schemes in the same manner as it was positioned under the DCR 1991.
However, Regulation 33(10) of the DCPR 2034 provides for higher FSI as also,
as per the new Regulations, the slum rehabilitation tenements were to be
constructed for all the slum dwellers irrespective of their eligibility, and in the
event the slum tenements were in excess of eligibility, the same would be
surrendered to the authority as PAP tenements to be utilized as Project Affected
Persons tenements. It is stated that apart from regulations concerning slum
rehabilitation schemes, the DCPR 2034 also contemplated generation of a pool
of housing. Regulation 33(10) (3.11) is stated to be a scheme which provides for
rehabilitation of slum dwellers who are situated on lands which are required for
implementing vital public projects. It is stated that as per this scheme, developers
offer lands owned by them where the slum dwellers encroaching the vital public
project land would be housed. The developer conveys such land to the SRA and
receives Floor Space Index (FSI) and Transferable Development Rights (TDR)
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for the same. Further the Regulation 33(10) (3.12)(c) contemplates creation of
PAPs in each slum scheme. Regulation 33(11) of the DCPR 2034 stipulates
creation of Permanent Transit Camps for the SRA. Under the said Regulation,
the scheme is approved specifically for constructing transit camps which may be
used by the SRA for housing slum dwellers from other schemes. These are the
provisions enacted for creating a pool of housing which may facilitate the
vacating of public and private lands. A reference is also made to Regulations
33(20)(A), (B) and (C) which provide for construction of low cost housing for
low income and middle income groups enabling construction of subsidized
housing.
134. Considering the difficulties which were faced in implementing the Scheme
as per Regulation 33(10) of the DCR 1991, extensive amendments were made to
Regulation 33(10) so as to bring about a sea change by making the following
provisions:
“(a) Requirement of construction of rehabilitation tenements by
accounting for eligible and ineligible slum dwellers: The DCPR 2034
now makes provisions for construction of tenements for all slum
dwellers, eligible and ineligible. It makes provisions for the ineligible
slum dwellers who may become eligible subsequently due to
verification/scrutiny. In the earlier regime, the hutments were
accounted for the eligible slum dwellers only. In the event of increase
of eligible slum dwellers, the parameters of slum scheme would be
required to be changed. This amendment is a step forward in
expedition in schemes.
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(b) The incentives such as FSI and built up area were increased.
Higher FSI not only ensured that more hutments could be
constructed in the rehabilitation components and more PAP
tenements could also be generated.
(c) In the earlier regime, the minimum requirement of consent
was 70%. Under the new regime, this requirement has been reduced
to 51% in order to ensure that slum schemes are accepted faster.
(d) In the earlier regime, no premiums were payable for schemes
on Government lands. Presently, 25% value of the ASR of the slum
scheme is payable to the Government. This ensures that no
government lands 'go for free' in implementation of slum schemes.”
135. The categories of slums are set out in Section 4, primarily being three
categories, namely, slum areas declared under Sections 4 and 4A, and further
slum rehabilitation area declared under Section 3C and Censused slum areas
defined under Section 2(1b) of the Slum Act.
136. Regulation 33(10)(II)(viii) of the DCPR 2034 defines censused slums as
hutments located on lands belonging to the Government or any of its
undertakings or the MCGM, incorporated in the records of the land owning
authority based on the census carried out in 1976, 1980 or 1985 or prior to 1
January 1995 and 1 January 2000.
137. In regard to the process of identification of slum and slum rehabilitation
areas earlier and the process for redevelopment schemes, it is stated that for the
rehabilitation of slums, the declaration of a slum rehabilitation scheme and slum
rehabilitation areas is a prerequisite, the relevant provisions being Sections 4 and
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3C providing for the declaration of areas as ‘ slum areas’ and ‘slum rehabilitation
areas’, respectively.
138. For such purpose, actual physical surveys were carried out by the SRA /
Competent Authority. A survey report of the area was prepared after being
satisfied that slum like conditions existed. Public notices were issued by the
SRA/Competent Authority declaring their intention to declare particular areas as
Slum Areas. This physical process was time consuming and at times could not
identify the boundaries of the slums accurately. The State prescribed minimum
number of hutments for declaring areas as Slum Areas. In such context,
Government Resolution dated 23 May 2001 was issued which stipulated that
private lands can be declared as slum areas if they contained 25 or more slum
structures. Further, a Government Resolution dated 5 August 2005 declared the
issuance of photo-passes to slum structures situated on private land, land owned
by the State Government within the jurisdiction of the BMC, and land owned by
any other agency of the State Government, provided that 15 or more slum
structures existed on such lands. It is stated that the minimum requirement of 15
structures does not apply to the declaration of slum rehabilitation areas. A
reference is made to the notification issued by the SRA dated 23 May 2022
declaring all public and private lands on which slum structures existed prior to 1
January 2011 and had been declared as slum areas, or censused slums, as slum
rehabilitation areas.
139. It is stated that as on date, the following is the data as regards the lands
declared as Slum Rehabilitation Areas under Section 3C of the Slum Act:-
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140. Further, in the current regime of submission / presentation of schemes in
regard to selection of developers of the society, it is stated that once a slum
rehabilitation area is declared, Regulation 33(10) of the DCPR 2034 mandates
that at least 51% of the eligible slum dwellers in such an area must agree to join
the slum rehabilitation scheme. It is stated that in such cases, a developer
interested in executing the scheme is required to obtain the necessary consent
from the eligible dwellers and subsequently submit a proposal to execute the
slum rehabilitation scheme. Pertinently, the developer may be a non-
governmental organization (NGO), provided it has been duly registered under
the Maharashtra Public Charitable Trusts Act, 1961, and the Societies
Registration Act, 1960, for at least five years prior.
141. Once a proposal is submitted by the developer, the SRA conducts a
comprehensive scrutiny of the same by applying the contents of Circular No. 144
& 144A, which inter alia provides for verification of title, the financial capacity of
the developer and availability of access roads.
142. SRA applies the provisions of Section 13(2) of the Act that if the owners,
landholders or occupiers fail to come forth within a reasonable time, not
exceeding 120 days, to relocate and rehabilitate protected and other occupiers, in
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such event, the SRA may determine to redevelop such land by entrusting it to
any agency or developer. The SRA may also determine to redevelop such land
entrusting it to any other agency or developer where an appointed developer does
not adhere to the approved plan or violates any stipulated conditions or
restrictions, including those pertaining to timelines.
143. In regard to slum area declared under Section 4 or 3C or a censused slum,
all slum dwellers form a proposed slum society consisting of one Chief Promoter
and 11 Managing Committee members. In such context, Circular No.169 is
issued by the SRA, which sets out the manner in which the meeting for
appointment of the developer is to be held. A representative from the
Cooperative Department by following the procedure as notified by SRA, which
includes issuance of notice of meeting for selection of a developer, video-
graphing of the meeting, biometrics, counting of votes cast under the statutory
ballot constituency. After selection of the developer with 51% consent of slum
dwellers, a proposal is submitted by the developer through its architect to the
SRA for further permissions/scrutiny.
144. In regard to the consideration of claims as per the procedure prevailing as
on date, it is the SRA’s contention that the developers and Societies earlier were
submitting incomplete proposals for blocking slum schemes. Such issue was
considered by this Court in the case of Atesham Ahmed Khan & Ors. vs.
51
Lakadawala Developers Pvt. Ltd. & Ors., . The Division Bench in the context of
incomplete proposals has made significant observations:
51 2011 (3) Mah. L.J. 604
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“10. The grievance, however, of the petitioners relates to the consequential
directions that have been issued by the High Power Committee. The
Committee has directed the Slum Rehabilitation Authority to obtain a
report of the Competent Authority which was to verify draft Annexure-II
submitted by the Architect of the first and second respondents. Now, in this
regard it would be necessary to note that when a proposal is submitted by a
proposed Co-operative Housing Society of slum dwellers the application is
initially accepted and verified. The applicant is then required to pay the
scrutiny fees upon which a scrutiny is conducted. Draft Annexure II
containing a list of slum dwellers is thereafter forwarded by the Slum
Rehabilitation Authority to the Competent Authority for verifying the
names of eligible slum dwellers. In the case of public lands which are of the
ownership of the State Government, the Additional Collector
(Encroachment and Removal), who is the Competent Authority, has to
verify draft Annexure -II containing names of slum dwellers who are eligible
to participate in the Slum Rehabilitation Scheme and to certify it. At the
stage when an application is submitted before the Slum Rehabilitation
Authority, the application, as it stands, must indicate that the applicant
fulfills the requirement of the requisite consent of 70% of the slum dwellers.
The claim of the applicant is thereupon subject to scrutiny. But before the
question of scrutiny arises, the application must on its face indicate that it
fulfills the requirement of 70% consents. Hence, we find merit in the
contention which has been urged on behalf of the petitioners in these
proceedings that an application which on its face does not fulfill the
requirement of DCR 33 (10), must be rejected. The applicant cannot be
allowed to progressively make up a deficiency in an application which does
not ex facie fulfill the conditions on the date when it is submitted. In view
of the judgment of the Division Bench in Awdesh Tiwari, the submission of
an application operates to exclude all other Societies from having their
applications received and processed by the Slum Rehabilitation Authority in
respect of the scheme. Since the effect of the acceptance of the first
application is to exclude from scrutiny all other applications until the
scrutiny of the first application is complete, it is the bounden duty of the
applicant to ensure that the application is complete in all respects and does
not suffer from any deficiency. Any other construction would lead to the
undesirable result that an application which is otherwise deficient and
incomplete can progressively be improved upon over a prolonged period of
time leading to a delay in the implementation of the Slum Rehabilitation
Scheme. Moreover, the mere submission of an application, however
deficient, will operate to block ail other applicants. This could not possibly
be the intent underlying DCR 33(10). Again it must be emphasized that
the underlying logic of the judgment of the Division Bench in Awdesh
Tiwari (supra) is to exclude the possibility of undesirable competition by
unscrupulous elements resorting to extraneous means in the
implementation of slum schemes. Hence the first applicant must act bona
fide and in compliance with law by submitting an application which fulfills
the requirements of a valid application. The application must fulfill the
essential requirements of a valid application on the date on which it is
submitted .
11. Having regard to this position, we are of the view that the Slum
Rehabilitation Authority, in pursuance of the directions that were issued by
the High Power Committee, must verify as to whether the application that
was submitted by the first and second respondents was complete in all
respects and fulfils the requirements of DCR 33,(10) in order to merit further
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scrutiny and verification. We are not inclined at this stage to stay the process
of verification of draft Annexure-II by the Competent Authority. Ultimately,
if the order of the Slum Rehabilitation Authority has to be implemented, it is
only necessary and proper that the list of eligible slum dwellers must be
certified. Thus while we confirm the order that was passed by the High Power
Committee, setting aside the decision of the Slum Rehabilitation Authority
dated 26 October, 2006, we do so on the ground that the decision came to be
rendered without furnishing an opportunity to the first and second
respondents in compliance with the principles of natural justice. We, however,
clarify that in this process the Slum Rehabilitation Authority shall determine
as to whether the application submitted by the first and second respondents
was complete in all respects and met the requirements of DCR 33(10). This
must be determined by the Slum Rehabilitation Authority with reference to
the date on which the application was submitted. In the meantime, we direct
the Competent Authority to complete the process of verification of draft
Annexure-II and remit it back to the Slum Rehabilitation Authority.”
145. T he SRA issued Circular No. 141 to streamline the procedure in regard to
the submission of schemes. The said circular was subsequently superseded by a
circular dated 31 August 2013, which prescribes the manner in which proposals
are to be submitted. This circular is in force till date.
146. The current procedure for the presentation of slum schemes on public
lands is governed by Circular No. 144, under which the following procedure is
contemplated:-
“5.2.3.1. The promoter / developer/architect is required submit Annexures
I to V to the Engineering Department, SRA. The SRA shall first check if
there are any slum schemes pending for the land on which slum project is
proposed. In case any scheme is pending, the proposal will be rejected
forthwith.
5.2.3.2. In case there is no pending scheme, the proposal is inscribed as
accepted, and the proposal is returned to the developer for further
presentation. The accepted proposal is then submitted by the developer to
the Executive Engineer. The Executive Engineer scrutinizes the proposal
for having all relevant documents and accepts the same. In case the
proposal is incomplete, the same is rejected.
5.2.3.3. The Executive Engineer then forwards the proposal to the relevant
departments for their NOCs.
5.2.3.4. Annexures I to VI are given to the relevant departments. The
Annexure I to VI are to be submitted in a particular format which is
prescribed in the Forms to Circular 144. The details of the Annexures and
the Departments are as under:
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Annexure I: Engineering Department of SRA: This document sets out the
details about ownership of land, details of plot area, details of existing
hutments and their type, computation of tenement density, extent and type
of reservations, amenities, FSI available, number of tenements to be
constructed including calculation of TDR etc. This annexure is a summary
of the scheme which gives an overall perspective of the parameters of
development which the developer intends to carry out.
Annexure II: Collector SRA/ land owning authority: This document sets
out the details of the number of eligible hutment dwellers and the
Appendix to this annexure sets out the consents of the slum dwellers.
i This is a draft Annexure II which is submitted by the developer
which comprises all the slum dwellers who are residing on the plot,
eligible and ineligible.
ii. The actual exercise of eligibility commences after the scheme is
accepted. The Annexure II is scrutinized by the SRA and based on the
documents of each slum dweller the eligibility is decided. In cases
where the scheme is proposed on MCGM/MHADA land, the
Annexure II is scrutinized and certified by such land owning authority.
Annexure III: Financial Department of SRA: This document sets out the
financial capability of the developer for undertaking the entire project.
i. In this Annexure, the developer furnishes a statement by a Chartered
Accountant/Director / Partner certifying the financials of the
Company/ Firm.
ii. Tax returns of 3 years and audited income statements of 3 years are
required to be submitted.
iii. Bank balance statement certified by the Bank is submitted.
iv. The cost of construction of each tenement is Rs. 2,64,000/-. Based
on the number of tenements proposed to be constructed, the final
figure is required to be specified. Proof of availability of 20% of the
amount of such final figure is required to be furnished.
v. The funding plan for 80% of the amount as specified above is also
required to furnished.
Annexure IV: Town Planning Department: The Sectorial Planning remarks
for the proposed S.R. Scheme are offered in consonance with the
Development Plan. In this Annexure, the developer is required to furnish
the following documents.
i. P.R Cards of the particular land.
ii. CTS Plans.
iii. Kami Jasta Patra (Original).
iv. 7/12 extract if applicable.
v. Notarized copy of the Development Agreement and Power of
Attorney.
vi. Notarized copy of the Government Resolution under Section 14 in
cases where owners refuse to give consent and the application for land
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acquisition.
vii. Plot area certificate prepared by the Architect.
viii. Plot area calculation by triangular method.
Annexure V: Cooperative Department: Compliance of SRA Circular No.
169 is insisted on. With this annexure, the Developer is required to submit
a notarized copy of the GBR of the society.
Annexure VI - Deputy Director-Town planning department -With this
Annexure, the developer submits the following documents.
i. Certified true copy of the DP Remarks.
ii. Certified true copy of the A. E Survey Remarks.
iii. Certified true copy of A. E. (Maintenance) - status of road access.
iv. Superimposed plans which include the Slum plans / DP Plans/CTS
Plans along with the slum boundary.
5.2.3.5. The relevant departments after scrutinizing the proposals submit
their reports to the Engineering Department. The Engineering Department
on scrutinizing the reports decides whether the same has to be accepted or
rejected. On the proposal being accepted, acceptance fees is required to be
paid by the developer. In case the proposal is rejected, the same is conveyed
to the developer.”
147. On behalf of the SRA, the issues which are faced by it in scrutiny of the
proposals and more specifically the Annexure II, are to the effect that (i) the
process of verification/certification of Annexure II as contemplated by the
circulars is found to be time consuming, more particularly by the land owning
authority, as the draft Annexure II, after verification by the SRA, would be
forwarded to the relevant land owning authority; (ii) The Annexure II declares
the eligibility of the slum dwellers. On the certification of the Annexure II, the
ineligible slum dwellers resort to proceedings and challenge the certification as
also refuse to hand over/vacate their respective tenements; (iii) After the issuance
of Annexure II by the competent authority, slum dwellers divide their hutments
by creating a partition and during proceedings under Sections 33 and 38,
additional homes for divided hutments are demanded.
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148. Further, the number of eligible slum dwellers keeps changing, due to
certain slum dwellers becoming eligible subsequently. This would affect the
number of tenements which the developer proposed to construct. Under the
DCR 1991 regime, this would affect the scheme itself since the parameters of the
scheme were based on the number of eligible slum dwellers.
149. Submissions are made in regard to the current procedure for presentation
of slum schemes on private lands, which are governed by Circular 144A as issued
by the Slum Rehabilitation Authority. This is in respect of private lands which
are declared as slum rehabilitation areas under Section 3C of the Slum Act. The
owners of the private lands would have peremptory rights to implement the slum
rehabilitation scheme and in respect of which the proposal which is submitted is
scrutinized as per the provisions of Circular 144A. It is issued considering the
settled principles of law that after declaration of areas as slum rehabilitation areas
under Section 3C, a notice of 120 days is required to be issued by the SRA to the
owners/persons whose name is on the Property Record Card to come forward and
submit a slum scheme. Also, in case of areas which are already declared as Slum
Rehabilitation Areas, and where no slum schemes are being implemented, the
SRA, following the decision of this Court as also the Supreme Court of India,
issues a notice of 120 days to the owners to come forward and submit a slum
rehabilitation scheme. It is also provided that in regard to privately owned lands
where the schemes are submitted by the owners, the same can be submitted
without obtaining the consent of the slum dwellers. The condition of Annexure
No. II required in circular no. 144 is relaxed at the time of submission of the
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proposal. It is only after the scheme is accepted and before the LOI (Letter of
Intent) is issued, such consents are required to be furnished. It is also provided
that where the owner does not submit the Slum Rehabilitation scheme as per
Circular 144A in 120 days, acquisition of private land as per the provisions of
Section 14(1) is initiated and the procedure is accordingly set into motion. Also,
the Society of slum dwellers has the liberty to appoint a developer of its choice
with a minimum 51% consent of the slum dwellers.
150. Relevant data regarding the slum schemes in Mumbai : As of 30 June,
2025, the Slum Rehabilitation Authority is stated to have received 2784 Slum
Rehabilitation Schemes (SRS) under Section 3B of the Slum Act. Out of the said
2784 schemes submitted, 2308 SRS are accepted and 236 SRS are rejected, while
240 SRS are under scrutiny. The ward-wise details with the highest number of
schemes in some of the wards are noticed in the following chart:

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151. Following is the bifurcation of 2308 accepted schemes:

152. Following is the summary of Sanctioned 1402 S.R. Schemes under
Regulation 33(10) for which LOI is issued:

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153. Following are the details of sanctioned PTC/PAP Schemes:

154. Following is the status of halted Slum Rehabilitation Schemes under
Regulation 33(10):

155. T he following table provides a ward-wise summary of slum rehabilitation
schemes, showing the total number of schemes, total slum dwellers as per LOI,
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tenements handed over to eligible slum dwellers, PAPs and PTCs sanctioned as
per the last revised LOI, PAPs and PTCs actually handed over, and the total
rehabilitation tenements completed.

156. Steps taken for identification of slums and slum dwellers :-
(1) The SRA has employed advanced technology to identify slum areas,
slum hutments and slum dwellers residing in such hutments and also their
eligibility for allotment of permanent alternate accommodation. The SRA,
by appointing specialized agencies, has carried out an extensive mapping of
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slums areas in Mumbai and is also linking the hutments in such slum areas
with the slum dwellers residing in such hutments.
(2) Since 2022-23, the SRA has relied on methods such as drone
surveys, satellite and GIS mapping, geo – tagging and biometrics to
holistically identify the slum areas and slum hutments existing in such areas
as also their eligibility. The different processes as adopted are:
(I) Current process of identification of slums and slum dwellers -
(i) Marking of slum cluster boundaries using satellite images and
topographical survey and DGPS survey:- 1) The SRA has acquired satellite
images for areas of Mumbai and identified slum clusters. From the images,
the SRA has identified the patches / clusters of slums and its outer
boundaries; 2) The SRA has appointed an agency to physically verify the
boundary based on the satellite images. Such designated persons visit the
slum clusters and physically identify the boundaries of such clusters. This
process is called as ‘topographical survey’; 3) At the time of survey of
boundaries, the designated person also places digital markers / identifiers
on the boundaries which makes the identification of boundaries even more
accurate. These points are known as ‘Differential Global Positioning
System Points’ (DGPS Points). The process of identification of the
boundaries based on such DGPS Points is called as the DGPS Survey; 4)
The SRA has taken a decision to ascertain the encroachments of slums
through satellite images from Bhaskaracharya National Institute for Space
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Application and Geo Informatics (BISAG-N); 5)Also, a mobile
application will be provided by BISAG-N based on the area identified as
slums through satellite maps. An outer boundary is identified. Through
the satellite images, the structures which are within the slums, are also
identified. Further, in the event of any encroachment/new addition in the
slum areas within and outside the boundary, an encroachment trigger gets
activated on the application, notifying such encroachment. Such data can
be used by the SRA in the sanctioned / on-going scheme. This application
will help the competent authorities to issue notices to the unauthorized
structures and initiate relevant action of demolition under the Slum Act.
(ii) Drone Survey and GIS Mapping :- 1) Based on the satellite
imagery and topographical survey, high resolution images are taken by
aerial photography carried out by drones, being the drone survey. By
clicking high resolution images of slum clusters, the SRA is able to identify
a reasonably accurate number of hutments which exist on the lands. These
hutments from the air appear in the shape of polygons. Based on the
number of such polygonal shapes which appear in the drone photography,
the number of hutments is determined; 2) By identifying the number of
hutments by drone survey, a base map of the number of hutments is
prepared. This map is known as a ‘Geographic Information System Map’.
On such map, a demarcation of each hutment is made and boundaries of
such hutments are identified in respect of each of the hutments in the
cluster.
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(iii) Biometrics :-
Sensitisation meetings :- It is contended that before commencing the
actual door-to-door surveys in the slums, in order to make people aware of
the process of identification of hutments, sensitisation meetings were held
where the experts and officers from SRA explain to the slum dwellers the
nature of the exercise being undertaken and their legal rights.
Door to door survey :- Also, there is a door-to-door survey which is
undertaken after the GIS mapping and marking of boundaries of
hutments, and after the sensitisation meetings, a physical survey of each
hutment is undertaken. The door-to-door survey is carried out by
appointing agencies in which the appointed person paints a unique
number on each hutment. By visiting the hutment, the following data is
collected from each hutment:-
. Hut photos from front and side; (360 degree photograph);
. Photos of slum dweller and his family members;
. Self-declaration video from the slum dweller;
. Short video of the inside of the hutment;
. Signed self-declaration from the slum dweller;
. Available proof of existence of the hutment from year before 2000-
2011 and additional documents such as electricity bills, survey receipt from
the year 2000, Gumasta licence, etc.
. Aadhar Card details and biometric of hutment occupant.
. Hutment measurements.
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Geo – tagging :- Further, there is geo-tagging on the hutments being
marked and being given a unique number, such tenement is linked with
the hutment as visible on the GIS Map. This linking/tagging of each such
hutment on the GIS Map is known as Geo-tagging. After such tagging,
the details of each hutment, dwellers of the hutment and all details
acquired during the door to door survey get linked with the GIS Map.
(iv) Slum Information Management System:- After the entire data as
aforesaid is gathered, the same is fed into a data system which contains all
particulars from the satellite imagery to the biometric details of each slum
dweller. This database is known as the Slum Information Management
System (SIMS).
The following are the details of the extent of the survey carried out by the
SRA:-
Total number of Slum Clusters - 2599
Total number of Huts to be surveyed - 1379086
Drone Survey Completed (GIS) - 1078746 (out of 1379086)
Total numbering done - 848426 (out of 1078746)
Total Biometric Survey done - 577782 (out of 833668)
Total Annexure II issued - 3,81,029 (out of 577771)
Total Annexure II in process - 1,96,742
Auto – Annexure – II :- It is stated that preparation of Annexure-II has
historically been a time-consuming process. To streamline, simplify and
expedite this process, the SRA introduced the Auto Annexure-II in the
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year 2021. This is a process of generation of the list of all eligible slum
dwellers by relying on the Geo-tagged hutments, the electoral roll /
documents available and the Aadhaar Card of slum dwellers. After
collection of the biometric data, all the relevant documents including the
electoral roll, Aadhaar card, electricity bills, photopasses etc. are aggregated
in the SIMS and a comprehensive list of names and supporting documents
is generated and it is based on such available documents that the eligible
and non-eligible slum dwellers are identified and this becomes the
Annexure II. In the year 2023, the SRA developed a software application
through an agency that integrates data from various authorities, including
electricity distribution licensees (BEST, Adani, TATA), and includes
information from sources such as the Electoral Roll, Shop Establishment
License, Photo Pass etc. to ensure that no false or forged documents are
submitted by slum-dwellers. Additionally, for increased transparency, the
SRA has also started publishing certified Annexure-II documents on their
official website to make them publicly available.
Database of beneficiaries in existing rehabilitation schemes – To identify if
a slum-dweller has previously secured an allotment, the SRA has issued a
tender for the creation of a database of rehabilitation/PAP/PTC tenements
allotted since its inception. The SRA has developed an online application
called “Transfer of Tenements” to digitize the entire process of transferring
tenements, including application submission, online fee payment, and
issuance of NOC for transfer. It is stated that this database would ensure
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that slum-dwellers who have been accommodated in slum schemes already,
do not get any new tenements in other slum schemes. The purpose of
inclusion of PAP and PTC in the database is to ensure that the dwellers
who are already accommodated in such PAPs / PTCs are also identified in
order to avoid multiple allotments being made to the same dweller.
Online procedures :- It is stated that the SRA has computerized several
processes and made them online. Processes such as the Rent Management
System, Slum Information Management System, Auto Annexure-II, online
allotment of tenements through a lottery system, etc have been made
online. The SRA has also implemented an Online Visitor Management
System whereby the visitors of the website can interact with the SRA and
clarify queries which the visitors may have.
157. Improvements made to the process of selection of new developers and
proposed steps for improvement in the selection process.
(i) Robust Panel of developers: The SRA has stated that in order to
identify developers with sound financial and experience in implementing
slum and infrastructure projects, the SRA with the assistance of the State of
Maharashtra is in the process of ‘creating a robust panel of developers based
on criteria specified’. In such context,through a public notice, applications
were invited from developers and a proposal for the empanelment of
developers in three different categories i.e., A, B and C was submitted for
approval to the State Government after a technical and financial scrutiny of
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the applications. It is stated that the State Government has approved 15
developer firms/companies in A category, 9 in B category and 6 in C
th
category on 6 June 2023. The SRA has received an application for
empanelment by 20 other developers. The SRA has recommended the
empanelment and the same is subject to the approval from the State
Government.
(ii) Conditions of empanelment of developers - For the purpose of
empanelment, the SRA and State Government have imposed certain criteria
such as financial wherewithal, prior experience in implementation of slum
projects etc., the details of which are stated to be as under:

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(iii) Proposed steps being considered by SRA :- To strengthen the
verification process of a developer's financial capacity, the SRA is considering
several key proposals- to consider the financial strength of the Developer, the
cost of construction of tenement is increased as earlier the cost of
construction was Rs. 2,64,000/-. On that basis, 20% of the amount was
required to be available with the Developer and the source of funds for the
balance was required to be furnished. The SRA is now considering increasing
the cost of construction per rehabilitation tenement to Rs. 12,50,000/-. It is
stated that limiting the validity of a developer's financial assessment is being
limited to six months, when the financial capacity of a developer is assessed.
It is further stated that after the expiry of this period, it will have to be
reassessed before issuance of acceptance or LOI. To ensure viability, the
financial capacity will be reassessed on an annual basis from the date of
issuance of Financial Controller's FC-NOC/Annexure-III until issuance of
OC for rehabilitation of buildings is issued. During such reassessment, if it is
noted that no notable progress has been made on the project for ‘over a year’,
automatic cancellation of FC-NOC/Annexure-III will be considered to
prevent further delay and misuse.
Delay in implementation of the slum schemes and steps taken to avoid
/remedy delay.
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158. The followings are stated to be the causes for delay:-
(i) Financial incapability – It is observed by the SRA time and again that
once the developers have secured the schemes, no work is carried out and
there is inexplicable delay in implementation and completion of schemes.
The developers, while executing the project face various financial difficulties.
The developers take loans by mortgaging the free-sale components and
further complicate the implementation of schemes. Very often, the developers
become financially incapable of implementing the project and such project
then gets stuck.
(ii) Waiting for schemes to become more lucrative and trading of schemes. It
is observed that developers, after taking projects, wait for projects to become
financially more viable and lucrative by waiting for a policy to change etc.
Developers also trade ‘slum schemes’ away to other developers either by way
of transfer of shares of the developers company or by way of outright sale of
the scheme. Such transfers create new hurdles which delay schemes further.
(iii) Injunctions by Courts. In many slum projects, it was observed that the
slum scheme itself was on a land which was reserved as an open space. Such
slum schemes were held up and no proposals were processed in accordance
with the directions given by this Court in the case of NGO Alliance for
Goverance and Renewal (NAGAR) & Ors. vs. State of Maharashtra & Ors.
52
[Cityspace] . In other slum projects, where the developer has been
terminated and orders have been passed by the CEO-SRA and the AGRC,
52 2025 SCC OnLine Bom 2425
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the parties have challenged the same by filing Writ Petitions before the
Hon'ble Bombay High Court and have obtained injunctions staying the
schemes. Due to the pendency of such matters, the scheme itself gets delayed.
159. Power exercised under Section 13 (2) of the Slum Act. In order to deal
with the delay in SRA projects and the circumstances where schemes are being
carried out contrary to approvals, powers have been conferred on the SRA to
terminate the mandate of the developer under Section 13 (2), either on a
complaint by the members of the Society, or suo motu by the SRA itself. There
are other decisions of the Court on such issues.
160. It is stated that the power under Section 13 (2) is not exercised only for
delay in implementation of the scheme, but also for any construction carried out
in violation of the plans sanctioned under Section 12 (10) of the Slum Act or any
contravention thereof. Further, the SRA has also exercised such power for non-
payment of transit rents to the sum dwellers.
161. The following table, according to the SRA, would depict proceedings
under Section 13 (2) of the Act in the past 5 years:-

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passed in the year 2024-2025 for the change of developer.
162. Steps taken to revive stalled projects - It has very often been noticed that
projects are stalled due to lack of availability of sufficient finances. The projects
get stalled and then complaints are filed under Section 13 (2) of the Slum Act for
termination of such developers due to delay in implementation of the schemes. It
was also observed that certain developers availed finances from financial
institutions and despite such finances, fail to implement the schemes. (Where
does the finance go?) To address such situations, the SRA and the State of
Maharashtra have introduced measures. On 20 April 2022, 517 SRS [including
schemes on private plots under Regulation 33(11) and 33(14D)] approved prior
to 2014 were identified as delayed due to non-compliance with requisite
conditions on the part of developers. Also, the Housing Department issued a
Government Resolution on 25 May 2022 by which it approved two options to
implement the stalled schemes: (a) Appointment of Developers by adopting a
bidding process; (b) an Amnesty Scheme. Additionally, there is a joint venture
policy floated by the State Government to tackle stalled projects.
163. Appointment of Developers by adopting a bidding process – On 20 April
2022, the SRA, after ascertaining the details of stalled schemes had issued an
order rejecting / recording 517 slum schemes which as per the records of the SRA
had become dormant and no redevelopment process in the same was being
carried out. The said decision came to be challenged before this Court and the
same was set aside as a blanket order. The Hon'ble Court directed that individual
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notices be sent to developers who have delayed implementing the schemes.
164. The status as on 30 June 2025 of the said 517 schemes recorded on 20
April 2022 is stated to be as under:-

165. The SRA has scrutinized each of the 517 schemes and found that out of
these 517 schemes, some were included inadvertently. 486 schemes are stated to
be identified for further action. The SRA initiated action under Section 13 (2) by
entrusting the scheme to any agency or other developer recognized by it after
giving an opportunity of hearing. It is stated that the SRA is appointing
developers by adopting a bidding process in slum rehabilitation schemes through
a tendering process.
166. It is stated that out of the 517 schemes, orders have been issued in case of
306 schemes wherein either new developers have been appointed or some
existing developers have been retained.
167. It is stated that tenders were invited for stalled schemes on ‘Government
lands’. The SRA floated a tender for 10 stalled schemes in respect of which the
mandate of the developers was terminated. On 2 June 2025, a tender was floated
and bids were invited for implementing and completing such stalled projects, to
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be submitted by 19 June 2025. However, no bids were received. There were
three extensions granted for submission of bids. The last extension was till 25
July 2025 and only one bid was received for one scheme. The response to the
process of tendering has been poor.
168. Amnesty Scheme – It is stated that several developers, despite having
financial backing from recognized financial institutions, failed to complete the
slum rehabilitation schemes, adversely affecting both slum dwellers and the
financial institutions involved. Neither the SRA nor the State Government
maintained any records of the financial institutions that had invested in the
State's slum rehabilitation schemes. These financial institutions had an interest in
ensuring that the development is completed.
169. Consequent thereto, the Housing Department issued a Government
Resolution dated 25 May 2022, allowing financial institutions regulated/
recognized by the Reserve Bank of India (RBI), Securities and Exchange Board of
India (SEBI), or the National Housing Board (NHB) to send in applications
under the said amnesty scheme. Once a proposal from any financial institution is
accepted, they would be recorded as co-developers of the scheme.
170. It is sufficient for the Committee of the Government to appoint the
developer/financial institution. A separate resolution of the Annual General
Meeting is not needed. The 5% premium that is otherwise payable because of
change of developers does not apply in such cases. The financial institution must
complete the slum rehabilitation scheme within the agreed timelines. It must pay
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transit rent to eligible slum dwellers without fail. Further, the matter of pending
transit rent must be discussed with the CEO (SRA) and the slum dwellers'
association, after which a consensus must be reached on payment of transit rent,
failing which the Letter of Intent is not issued. Submission of Annexure III, in
relation to the financial capacity to be established, is mandatory. The details of
the schemes received till date are stated to be as under:

171. It is stated that as a result of the Amnesty Scheme, 157.73 Crores of
outstanding rent was recovered and paid to slum dwellers. In addition, two years
advance rent was also deposited as per Circular No. 210.
Steps taken to monitor delay in schemes activated under the Amnesty Scheme –
172. The SRA introduced the following measures to ensure that the schemes
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activated under the amnesty scheme are completed on time and the delay does
not defeat the purpose of the legislation, such as submission of bar-chart. The
developers are directed to submit Bar Chart and Critical Path Method (CPM)
charts depicting the exact time frames in which various phases of the
redevelopment project are to be completed as a registered undertaking to ensure
time-bound completion of projects. Also the developers are required to furnish
date-wise/stage-wise progress reports of existing SRS, if any, before the sanction
of FC-NOC/Annexure-III. It is stated that in cases where existing schemes of the
developer are delayed or incomplete, the developer will be required to
demonstrate the financial capacity to carry out the existing as well as new
projects. Also, the concerned developer implementing the scheme is required to
submit a bar chart outlining the deadlines of the project and also submit a phase
wise programme of implementation of the S.R. Scheme. On failure to implement
the scheme in a timely manner, a Show Cause Notice is given for the delay
caused. The developer is terminated if no satisfactory explanation is offered. Such
proceedings for termination of the developer are undertaken either on the
complaints received, or suo-motu.
173. Submissions of monthly progress reports are made mandatory for
developers and architects. Also in regard to some of the schemes approved under
the amnesty scheme where progress is not being made / rent not paid, action has
already been initiated.
Steps taken for redevelopment of public lands by public authorities. -
174. The slum rehabilitation schemes on public lands are carried out in
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accordance with the provisions of the DCPR 2034. In order to ensure that public
lands do not go for free and the authority owning the land does not suffer a loss
due to implementation of the slum scheme and to safeguard the interest of the
Government/Statutory authorities various provisions have been introduced in
the DCPR 2034. In such context, Regulation 33 (10) (1.11) provides for a
payment of premium of 25% of the Annual Statement of Rates to the
landowning authority. Further, the land on which free - sale component is
constructed is given on lease and power has been conferred on the SRA to
determine the lease rent payable. In addition, any reserve lands on the property
also become free of encroachments. It is stated that carrying out of the slum
rehabilitation projects on the said land also leads to the creation of PAPs, which
had been handed over to the SRA and in turn creates a pool of housing which is
utilized by various authorities.
175. In the recent past, the State Government, the SRA and other planning
bodies have endeavoured to undertake redevelopment of slums themselves on a
joint venture basis. Policies have been brought into force by the State of
Maharashtra to ensure smooth implementation of such schemes which are
undertaken by the planning bodies themselves. The SRA has itself undertaken to
carry out slum schemes. The relevant policies are as under:-
(i) SRA acting as the developer itself - In the recent past, the SRA has
acted as the developer of the projects for implementing the Slum Scheme.
One such example is the rehabilitation of slum dwellers occupying the site
where the Sahityaratna Lokshahir Annabhau Sathe Memorial is proposed
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to be constructed. The area had 640 slum dwellers. The State Government
approved this project as a vital project on 11th March 2024 and approved
an estimate of Rs. 305 crores as the project cost. The SRA will be
implementing this project and all project-related costs will be spent from
the SRA's account. This project will have approximately 520 residential
units and 120 commercial units.
(ii) Joint venture with Public Authorities - With a view to ensuring
that public lands on which the mandate of the developers had been
terminated could be expeditiously developed, a decision was taken by the
Government that in such circumstances, the land may revert to the land
owning agencies who would then complete the scheme within a 3 year time
frame. The target is to create 2 lakh affordable tenements as a pool of
housing.
176. The State Government in such context, approved a joint venture policy
and issued a Government Resolution dated 21 September 2023 prescribing
certain terms and conditions for the implementation of this policy. The terms
and conditions being :(i)Projects where a developer is unable to complete the
project and it remains stalled will be completed through a joint venture
arrangement;
(ii) The process stipulated under the Slum Act for changing the
developer will be adhered to.
(iii) An economic and technical feasibility study must be conducted
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prior to the handover of the scheme to the public authority.
(iv) An agreement must be executed between the SRA and the relevant
public authority concerning the project.
(v) The SRA will act as the Planning Authority for these schemes.
(vi) The local authority or civic body will be responsible for
constructing the rehabilitation and sale components of the projects. They
will then be permitted to sell the sale component in the open market under
the 'affordable housing for all' scheme to recover construction and other
associated expenses.
(vii) The public authority will be tasked with providing transit rent and
accommodation to the displaced slum dwellers.
(viii) For stalled projects, the concerned authority/body must pay to the
old developer the amount determined by an SRA empanelled valuer for the
costs incurred by the old developer.
On the basis of the Chief Minister's announcement, the Housing
Department vide letter dated 26 June 2024 directed the SRA to submit a
proposal for implementation of joint venture schemes with various
government agencies i.e., BMC/ CIDCO/ MIDC/ MahaPREIT/MHADA/
Mumbai Metropolitan Region Development Authority ("MMRDA")/
Maharashtra State Road Development Corporation Limited ("MSRDC"),
etc. As a result, 228 schemes have been allocated to public authorities like
the BMC, CIDCO, MAHAPREIT, MHADA, MSRDC. The details of
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which are as under:-

Policy dated 28 March 2025 appointing MCGM as the Planning Authority for
slums situated on lands owned by MCGM.
177. The State of Maharashtra on 28 March 2025 in exercise of powers under
Section 154 of the MRTP Act issued a Government Resolution appointing
MCGM as the planning authority for slums situated on lands owned by the
MCGM. The said GR was issued in order to expedite the implementation of
slum schemes on MCGM lands.
Transit accommodation and rent -
178. During the implementation of the Slum Scheme, there is an obligation on
the developer to provide either transit accommodation or rent till such time the
scheme is implemented. However, in a large number of cases, it is found that
neither accommodation is given, nor the transit rent is paid. Large arrears of rent
accumulated leading to the developer becoming financially incapable and the
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scheme becoming unviable, is what is observed. The slum dwellers upon not
receiving rents, also face further displacement leading to further proliferation of
slums. To address these issues, the following measures have been implemented:-
(i) Appointment of nodal officers and notices to pay transit rent
outstanding as on 7 December 2022. In 2019, two public interest litigations were
filed before this Court concerning the non-payment of transit rent. It was
brought to light that a significant amount of approximately Rs. 620 crores in
transit rent was pending payment by various developers across 150 schemes as of
7 December, 2022;
This Court directed the SRA to proactively take measures to ensure that
the slum dwellers receive transit rent. This Court specifically directed that the
SRA should appoint a Nodal Officer and call for representations/ complaints
from the cooperative housing societies of the slum dwellers if they have
grievances regarding the non-payment of transit rent.
The SRA has appointed 25 ward-wise nodal officers. They have also
published information regarding their appointment in various newspapers having
wide circulation in Mumbai City and suburban areas and displayed it on the
official website of the SRA. Separately, the SRA also issued a notice to the
concerned developers asking them to pay all eligible slum-dwellers within 15
days, or face legal action and suspension. Such notices were also published in two
local newspapers.
(ii) Appointment of Auditors for determining pending transit rent:-
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While dealing with the issue of non-payment of the transit rent, this Court had
also directed the SRA to take necessary action based on the complaints or
grievances of the slum dwellers in respect of pending transit rent. It was also
noted that this Court noted that the SRA can indicate the action taken as against
such representations/complaints on their portal. This was in addition to the
individual communications made to the cooperative societies of slum dwellers
which are already made.
In furtherance of this direction, the SRA regularly appoints auditors to
determine the amount of transit rent pending in respect of societies from which
any complaints regarding the non-payment of transit rent have been received. As
on 30 June 2025, the position was that the SRA had appointed 155 empanelled
auditors. The assessment of pending rent in the 155 schemes is reflected in the
following statement:-

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179. Based on the transit rent determined by the appointed auditors, the SRA
issued notices to the concerned developers asking them to pay all eligible slum-
dwellers within 15 days, or face legal action which includes suspension. Such
notices are also published in two local newspapers.
180. Circular No. 210 and 210A. - These circulars are issued in furtherance of
the orders passed by this Court. The salient features thereof are as follows:-
(i) In respect of new projects at the stage of Annexure III (financial capacity
of the developer), the developer is to submit a plan indicating the area proposed
to be developed in each phase i.e. Phase I, II, III etc. The developer is required to
submit a statement by the architect indicating the number of structures required
to be demolished in each phase as well as the area to be developed in each phase.
(ii) Most importantly, the Developers must deposit two years transit rent in
advance and one year's rent must be deposited by way of post-dated cheques for
the third year for the slum dwellers who would be evicted in the first phase. The
Executive Engineers of the SRA are to process the Letter of Intent only after
receipt of transit rent,
(iii) The Commencement Certificates shall also be issued in a phase wise
manner. For getting permission for further construction, the Developer would be
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required to deposit 2 years advance rent and postdated cheques for the third year,
(iv) No new proposals of defaulting developers/ firms, and their
partners/directors would be accepted until they deposit transit rent,
(v) Defaulting developers will not be appointed as developers irrespective of
the consent of slum dwellers in existing proposals of SRS where an agreement
with an existing developer is terminated;
vi) Developers that defaulted in providing PAP/PTC tenements to SRA, their
SRS proposals will not be accepted;
vii) The Executive Engineer will ensure that PAP/PTC tenements are
earmarked in approved plans at the time of intimation of Approval. The
Executive Engineer will also ensure that the agreement for PTC/PAP tenements
is registered in favour of SRA before the issue of further commencement
certificate of free sale buildings. Executive Engineer will restrict to 25% sale
commencement certificate [17(3)(D)(b)(6) of the DCPR 2034] till PAP
tenements are duly handed over to SRA.
181. It is stated that pursuant to Circular Nos.210 and 210A, the SRA has
recovered substantial pending rents of Rs.12,41,58,88,792/- as per the following
table:

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Illegal sale of Project Affected Persons tenements and steps taken to meet
the same. -
182. In various slum projects, it was noticed by the SRA that the tenements
reserved for rehabilitating Project Affected Persons (PAPs) were not handed over
by the developer and unlawfully given away to either slum dwellers or sold as free
sale units, or despite being handed over were being unlawfully occupied either by
ineligible slum dwellers or third parties who claimed to be purchasers of such
tenements.
183. PAP tenements are stated to be vital for creating a pool of housing in
Mumbai. These tenements are essential for carrying out infrastructure projects
and rehabilitating persons affected by such projects. Hence, to ensure that the
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PAP units are not unlawfully dealt with by the developers, the measures are
taken. To prevent the illegal sale of the PAP/PTC tenements by the developers as
well as the allotted rehab tenement by eligible slum-dwellers before the lock in
period, the following steps were taken:
(i) Developers are required to earmark the PAP/PTC tenements in
approved plans, wherever necessary;
(ii) Approved plans are displayed on the SRA website for information
to the general public;
(iii) A registered undertaking to be furnished by concerned developers
stating that the PAP/PTC tenements will be duly handed over to SRA, and no
third-party interest will be created in respect of these tenements,
(iv) Developers are mandated to display hoardings in conspicuous
places or at the entrance of the project site mentioning details of PAP/PTC
tenements;
(v) Copy of approved plans wherein PAP/PTC tenements are
earmarked will be shared with the Maharashtra Real Estate Regulatory Authority
(RERA) and the Department of Registration and Stamps (DoRS), requesting
them to add it to their record. DoRS will be requested to enter these PAP/PTC
tenements in their negative list and not register any agreement with respect to
these tenements; and
(vi) In order to prevent the sale of rehab tenements within five years of
allotment, the SRA has forwarded the letters to the Inspector General of
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Registration and Controller of Stamps requesting them to insist on the
permission of SRA prior to the registration of the agreement.
Eviction of obstructing slum dwellers under Sections 33 and 38 of the Slum Act.
(i) Section 33 of the Slum Act empowers the competent authority to
direct eviction of occupants from buildings on being satisfied that the occupants
of the building have not vacated despite an order or direction made by the
competent authority. Before ordering such eviction, the competent authority
must give a hearing opportunity to the occupant. In most cases, two hearing
opportunities are granted to the occupant to present their case and after such
hearing and an approval from the CEO, the Competent Authority passes an
order of eviction. The Competent Authority also has the power to demolish
buildings as per Section 38 of the Act.
(ii) The summary of action initiated under Sections 33 and 38 from 1
April 2024 to 11 November 2025 is set out according to which, 205 applications
under Section 38 were received and 6423 tenements were ordered to be
demolished, out of which 5162 tenements were demolished and demolition of
1261 tenements is stated to be in progress.
(iii) Staffing the SRA. - 10 appointments were made as Competent
Authority (Deputy Collector) for online Annexure-II, 25 Assistant
Commissioners of BMC wards are also the Competent Authority for BMC land
and there are separate Competent Authority for MHADA land. 3 Deputy
Collectors (Special Cell) were appointed to initiate action under sections 33 and
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38 of the Slum Act conducting hearings under section 13(2) and 30% Permanent
Staff has been appointed as per Government Resolution dated 11 July 2024.
Increase in the staff is done to cope with the large number of
applications/proposals which are revised by the SRA at various stages.
184. The following documents in regard to the staffing pattern has been placed
on record:-

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