Citation : 2021 Latest Caselaw 6836 Bom
Judgement Date : 29 April, 2021
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 12156 OF 2019
Hanuman Nagar ( Jogeshwari) SRA CHS (Prop.) )
Through its Chairman - Anant Madhukar Naik, )
Having its address at CTS No. 231 (pt.), 268 & 268 (1))
of village Mogra, Hanuman Nagar, Natwar Nagar )
Road No. 5, P.P. Dias Compound, Jogeshwari (East), )
Mumbai - 400 060 ) ... Petitioner
Versus
1.M/s. Kanchi Builders & Developers, )
Having its ofce at A, 202, Gogift, Adarsh Vihar )
Complex, Of. Marve, Malad (West), )
Mumbai - 400 064 )
2.Slum Rehabilitation Authority, )
Administrative Building, Prof. Anant Kanekar Marg, )
Bandra (East), Mumbai - 400 051 )
3. The Apex Grievance Redressal Committee, )
Government of Maharashtra, )
Old Custom House, Mumbai. ) ... Respondents
ALONG WITH
INTERIM APPLICATION (L) NO.96210 OF 2020
Mr.D.Nalawade i/b. Mr. Anil Mishra for the Petitioner.
Mr.Jayesh Bhatt for Respondent No. 1.
Mr.Anoop Patil for Respondent No. 2
Mr.P.K.Dhakephalkar, Sr. Adv. a/w. Mr. J.G.Aradwad (Reddy) for Respondent No. 3.
::: Uploaded on - 29/04/2021 ::: Downloaded on - 09/09/2021 07:22:32 :::
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CORAM : S.J.KATHAWALLA, &
R.I.CHAGLA, JJ.
RESERVED ON : 15TH DECEMBER, 2020 PRONOUNCED ON : 29TH APRIL, 2021 (THOUGH VIDEO CONFERENCING)
ORAL JUDGMENT (PER S.J. KATHAWALLA, J.) :
1. The Petitioner Hanuman Nagar ( Jogeshwari) SRA CHS [Proposed]
(the 'Petitioner Society') is a Society formed by the slum dwellers residing on the
plot of land bearing CTS No. 231 (part), 268 and 268(1) of Village Mogra, Hanuman
Nagar, Jogeshwari (East), Mumbai - 400 060, admeasuring 2764.70 Sq. Mtrs. (the
'Subject Plot').
2. By the above Writ Petition, the Petitioner Society has impugned the
Order dated 27th September, 2018, passed by the Apex Grievance Redressal
Committee ('AGRC') setting aside the Order passed by the CEO - SRA dated 23rd
November, 2017, terminating the appointment of the Respondent No. 1 - M/s Kanchi
Builders and Developers ('Developers') as Developers of the subject Slum
Rehabilitation Scheme ('S. R. Scheme') and allowing the Petitioner Society to
appoint a new developer in accordance with the Rules, Regulations and Policy of the
Slum Rehabilitation Authority ('SRA').
3. According to the Petitioner Society, most of its members (slum dwellers)
who were residing on the Subject Plot are poor workers, working as daily wage earners
and domestic workers (housemaids). In the year 2006 majority of the members of the
Petitioner Society appointed the Developers who are also the owners of the Subject
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Plot, as Developers for the S. R. Scheme, pursuant to which the Developers submitted
to the SRA a proposal on 22 nd July, 2006 for redevelopment of the Subject Plot under
Regulation 33 (10) of the Development Control Regulations for Greater Mumbai, 1991
('DCR'). On 8th December, 2006 certifed Annexure II was issued, wherein 124 slum
dwellers were held to be eligible. 80 slum dwellers handed over their huts to the
Developers in the year 2010. However, the Developers obtained the Letter of Intent
('LOI') only on 1st June, 2010 and the revised LOI on 15 th September, 2011. The
Developers obtained an Amended Intimation of Disapproval ('IOD') for a composite
Building No. 1 ('Composite Building') only on 16th September, 2011 and obtained the
plinth Commencement Certifcate ('CC') for the Composite Building only on 7 th
June, 2014.
4. The Developers had agreed to complete the construction of the
Composite Building within 24 months from the date of receipt of the CC. As stated
earlier though the CC was received on 7th June, 2014, the Developers except for
constructing the plinth of the Composite Building in the year 2014-15, not only failed
to carry out any further construction, but also failed to regularly pay the agreed
monthly compensation in lieu of temporary alternate accommodation to the members
of the Petitioner Society, thereby putting the poor and the helpless members of the
Petitioner Society who were waiting for a roof over their heads since the year 2006 and
the 80 members who have handed over the possession of their respective huts to the
Developers since the year 2010, into grave difculty and inconvenience.
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5. According to the Petitioner Society, they were therefore compelled to
make a representation dated 12th August, 2016 before the SRA, setting out the
harassment faced by them at the hands of the Developers. The Assistant Registrar
C.S. (Eastern & Western Suburbs) / SRA heard the parties and gave directions to pay
rent compensation to the eligible slum dwellers as per Circular No. 153 of the SRA and
after payment of the rent due to the eligible slum dwellers, submit a self-declaration
and to inform the SRA. Since the Developers violated the said direction and failed to
clear the dues of the slum dwellers and were also responsible in causing inordinate
delay in implementing the S. R. Scheme, the Petitioner Society in its General Body
Meeting held on 18th December, 2016 terminated the appointment of the Developers
of the subject S.R. Scheme and by their Letter / Application dated 12 th April, 2017,
requested the SRA to terminate the appointment of the Developers and to appoint
new developers in their place.
6. On 30th April, 2017, a General Body Meeting of the Petitioner Society
was once again held in the presence of the Co-operative Ofcers of the SRA. Out of 91
slum dwellers present at the Meeting, 85 slum dwellers decided to terminate the
appointment of the Developers of the S. R. Scheme.
7. A Show Cause Notice dated 19th May, 2017, was also issued to the
Developers calling upon them to explain as to why action under Section 13 (2) of the
Maharashtra Slum Areas Act (I.C. & R.) Act, 1971 ('the Slum Act') should not be
initiated.
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8. The CEO - SRA gave a hearing to the Petitioner Society as well as to the
Developers. The Developers gave several excuses including blaming the Petitioner
Society for the delay in completing the rehabilitation project. The CEO - SRA after
appreciating the grave inconvenience caused to the Petitioner Society by the approach
/ attitude of the Developers, by his reasoned Order dated 23 rd November, 2017, after
holding that the it is not disputed that the Scheme has been lingering for about 11 years
and the Developers are not serious about implementation of the Scheme, terminated
the appointment of the Respondent No. - 1 as Developers of the subject S. R. Scheme
and granted liberty to the Petitioner Society to appoint a new developer in accordance
with the Rules, Regulations and Policy of the SRA for implementation of the S. R.
Scheme.
9. It is submitted by the Petitioner Society that the AGRC without
appreciating the pathetic plight of the members of the Petitioner Society, for which the
Developers are solely responsible, or without verifying the fnancial status of the
Developers, or without making any provision to ensure compliance of its Order, by its
impugned Order dated 27th September, 2018, proceeded to set aside the Order of the
CEO - SRA dated 23rd November, 2017, and granted 2 months' time to the
Developers, i.e. upto 27th November, 2018, to clear the arrears towards interim rent /
compensation and 2 years' time i.e. upto 27th November, 2020, to obtain necessary
permission from the SRA / other authorities and complete the construction work of
the Composite Building as per the sanctioned plans and rehabilitate the slum dwellers.
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10. The Petitioner Society has at the outset also pointed out that though
they are aggrieved by the Order passed by the AGRC setting aside the Order of the
CEO - SRA dated 23rd November, 2017, and granting further time to the Developers
to deposit the arrears towards interim rent / compensation i.e. upto 27 th November,
2018 and to obtain necessary permissions and complete the construction of the
Composite Building by 27th November, 2020, the Developers not only delayed the
payment of arrears, but immediately from January 2019 failed to pay and have till date
not paid a single Rupee towards transit accommodation to the members of the
Petitioner Society, which has resulted in arrears mounting upto Rs. 2,89,75,500/-
(Two Crores Eighty-Nine Lakhs Seventy-Five thousand only) as on 30th September,
2020. In addition, thereto the Developers have till date not complied with any of the
other specifc directions given by the AGRC to obtain permissions and construct the
Composite Building within 2 years from the date of the impugned Order of the AGRC
dated 27th September, 2018, but till the date of hearing of the above Writ Petition have
not even bothered to apply for the necessary permissions as directed by the AGRC on
27th September, 2018. Consequently, the plinth which was constructed in the year
2014-15 is also damaged and destroyed and the photographs taken on 23 rd August,
2020 and 9th December, 2020 of the Subject Plot on which the Developers were
required to construct the Composite Building before 27 th November, 2020 as directed
by the AGRC, portrays the completely neglected condition of the Subject Plot as
under :
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11. The facts in the matter are now set out in brief hereunder :
11.1 The slum dwellers residing on the Subject Plot, in the year 2006 formed
the Petitioner Society i.e. Hanuman Nagar ( Jogeshwari) SRA CHS (Prop.).
11.2. Since the Developers are also the Owners of the Subject Plot, in the year
2006 the majority members of the Petitioner Society appointed them as Developers
for the S.R. Scheme. In view thereof, the Developers submitted to the SRA a proposal
on 22nd July, 2006 for redevelopment of the Subject Plot under Regulation 33 (10) of
the DCR.
11.3. Thereafter, the Additional Collector (E & R) / Western Suburb &
Competent Authority issued certifed Annexure-II on 8 th December, 2006 for total 141
slum dwellers, out of which 124 slum dwellers are held eligible. 80 slum dwellers
handed over their huts to the Developers in the year 2010, on a promise by the
Developers to pay monthly compensation / rent towards temporary alternate
accommodation. The members of the Petitioner Society based on the said promise
arranged for temporary alternate accommodation until the new building was
constructed on the Subject Plot and they were rehabilitated therein.
11.4. The Developers obtained the LOI on 1st June, 2010 and revised LOI on
15th September, 2011. Again, the amended IOD for the Composite Building was
obtained only on 16th September, 2011 and the plinth CC only on 7th June, 2014.
11.5. In the year 2014 - 15 the Developers carried out construction upto plinth
level and though they were required to rehabilitate the members of the Petitioner
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Society within 24 months from the date of the CC, i.e. by 7 th June, 2016, the
construction remained at plinth level till date. The Developers also defaulted in
making payment of the transit accommodation rent as agreed, thereby creating serious
problems for the members of the Petitioner Society / the slum dwellers, who in turn
defaulted in paying the license fees to their respective licensors for using the licensed
premises as transit accommodation, and consequently were served with eviction
notices by the respective licensors.
11.6. The members of the Petitioner Society fled representation dated 12 th
August, 2016 before the SRA setting out the aforestated facts.
11.7. The Assistant Registrar C.S. (Eastern & Western Suburbs) / SRA heard
the parties and directed the Developers to pay rent / compensation to the eligible slum
dwellers as per Circular No. 153 of the SRA and after payment of the rent due to the
eligible slum dwellers, submit self-declaration and inform the SRA.
11.8. Since the Developers violated the said direction and failed to clear the
dues of the slum dwellers and thereby caused inordinate delay in implementing the S.
R. Scheme, the Petitioner Society in its General Body Meeting held on 18 th December,
2016, terminated the appointment of the Developers and by their Letter / Application
dated 12th April, 2017, requested the SRA to terminate the appointment of Respondent
No. 1 as Developers and to appoint new developer/s in their place.
11.9. On 30th April, 2017, a General Body Meeting of the Petitioner Society
was once again held in the presence of the Ofcers of the SRA. Out of 91 slum
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dwellers present at the Meeting 85 slum dwellers decided to terminate the
appointment of the Developers of the S. R. Scheme.
11.10. A Show Cause Notice dated 19th May, 2017 was also issued to the
Developers calling upon them to explain as to why action under Section 13 (2) of the
Maharashtra Slum Areas Act (I.C. & R.) Act, 1971 (the Slum Act) should not be
initiated.
11.11. The CEO - SRA gave a hearing to the Petitioner Society as well as to the
Developers. The Petitioner Society pointed out to the CEO - SRA the aforestated
facts and consequent sufering of its members and requested that the appointment of
the Developers be terminated and a new developer be appointed.
11.12. The Developers submitted before the CEO - SRA that the delay was
caused since it took one and half years to declare the Subject Plot as slum; the old
committee of the slum dwellers blackmailed the Developers for about two years after
obtaining the LOI; the building of the SRA had caught fre because of which more
than eighteen months were wasted; the new managing committee was elected and they
demanded fve crores for supporting the Developers; the Developers have paid Rs. 8
to 10 Crores to the slum dwellers and obtained the plinth CC from SRA; the
construction of Metro work, restricted the height of the rehab building from 16 foors
to 11 foors.
11.13. The Developers submitted before the CEO - SRA that they will clear
the arrears of transit rent within 45 days.
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11.14. The CEO - SRA after hearing the Learned Advocates appearing for the
parties, by his Order dated 23rd November, 2017 held that the Scheme has been
lingering for about 11 years, and it will have to be concluded that the Developers are
not serious about the implementation of the Scheme. As regards the ofer of the
Developers to clear the arrears within 45 days, the CEO - SRA rejected the same on
the ground that the same cannot be accepted at the last moment and the same is just a
plea taken by the Developers for condonation of default in payment of rent till the date
of hearing. The CEO - SRA thereafter recorded that the appointment of the
Developers of the subject S. R. Scheme is terminated with efect from 4 th October,
2017; the Petitioner Society is at liberty to appoint a new developer of their choice in
accordance with Rules, Regulations and Policy of SRA for implementation of S.R.
Scheme and submit the proposal for acceptance to the SRA; the Engineering
Department of SRA was directed to appoint Government Approved Valuer to value
the expenses legally incurred by the Developers on site and inform the same to the
Petitioner Society, and the newly appointed developer would have to reimburse the
actual expenses legally incurred by the Developers for implementation of subject S.R.
Scheme till the date of termination.
11.15. Being aggrieved by the Order of the CEO - SRA, the Developers fled
Application (L) No. 107 of 2018, before the AGRC impugning the Order of the CEO -
SRA dated 23rd November, 2017, interalia terminating their appointment as
Developers.
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11.16. The Advocate appearing for the Petitioner Society reiterated the above
problems faced by its members, before the AGRC.
11.17. It was submitted on behalf of the Developers before the AGRC that the
CEO - SRA had issued CC for rehab building on 7 th June, 2014; 80 slum dwellers
vacated their structures and in lieu of transit accommodation, the Developers are
paying rent / compensation since the year 2011-12 till date; in view of the height
restriction by Airport Authority and starting of Metro work, the Developers submitted
a proposal to amend the building plans and reduced the height of building from 16
foors to 11 foors; certain slum dwellers at the instance and behest of another
developer started objecting to the development only with a view to extort money from
the Developers, and the old managing committee of the Petitioner Society blackmailed
the Developers and demanded huge amount and on some occasions the Developers
paid the same and thereafter refused to pay the same and therefore the old managing
committee members of the Petitioner Society started obstructing the redevelopment.
It was submitted that even though the Developers are ready and willing to develop
their own property, the Developers are not able to carry out construction. SRA and
CEO - SRA cannot invoke the provisions of Section 13 (2) of the Maharashtra Slum
Areas Act (I.C. & R.) Act, 1971 against the Developers on the ground of non-payment
of rent / compensation to the slum dwellers and the Developers be allowed to deposit
all arrears of rent within two months upon the Developers being reinstated.
11.18. In response to the above, the Learned Advocate representing the
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Petitioner Society before the AGRC denied and disputed the above allegations /
contentions advanced on behalf of the Developers and by pointing out the aforestated
facts, explained to the AGRC how its members were sufering since the last several
years. It was pointed out that though the CEO - SRA passed an Order dated 23 rd
November, 2017 terminating the appointment of the Developers and pursuant thereto
the Joint Registrar Co-operative Societies - SRA scheduled the General Body Meeting
of the Petitioner Society on 9th May, 2018 to appoint a new developer to implement the
S.R. Scheme and notice to that efect was also served on the members of the Petitioner
Society, the Developers waited till the happening of all these events and after a period
of fve months from the date of passing of the Order by the CEO - SRA approached
the AGRC, which itself shows that the Developers are not interested in pursuing the
development activity, but by adopting dilatory tactics are only wanting to cause
hindrance in the implementation of the S.R. Scheme for their own commercial
interest, which is detrimental to the interest of the slum dwellers.
11.19. The AGRC by its impugned Order dated 27 th September, 2018,
proceeded to set aside the Order passed by the CEO - SRA dated 23 rd November, 2017
on the ground that the Developers being the owners have the frst option / choice to
redevelop the Subject Plot owned by them and that the Developers have already taken
steps to redevelop the Subject Plot in the year 2006 and have already constructed the
plinth of the Composite Building as per the permission granted by SRA; if the new
developer is required to be appointed as per the Order of CEO - SRA, the new
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developer is required to obtain consent / no objection from the present Developers,
being the owners of the Subject Plot, failing which, acquisition proceedings qua the
Subject Plot under Section 14(1) of the Maharashtra Slum Areas (I.C.&R) Act, 1971,
will have to be initiated by the CEO - SRA, which will cause further delay in the
development of the Subject Plot in occupation of the Petitioner Society. The AGRC in
its impugned Order also referred to the decision of this Court in the case of Awdesh
Tiwari & Ors. vs. Chief Executive Ofcere Slum Rehabilitation Authority and
otherse1 wherein it is held that, "there is nothing in the Scheme of D.C. Regulation 33 (10)
that an individual slum dweller get a right to decide which Society or which Developer should
implement the Scheme." The AGRC thereafter proceeded to set aside the Order of the
CEO - SRA dated 23rd November, 2017, and directed the Developers to deposit with
the SRA, arrears of rent in lieu of transit accommodation of eligible slum dwellers
within a period of two months from 27 th September, 2018 and further directed the
Developers "in larger interest of slum dwellers and to enable speedier implementation of
subject S.R. Scheme", to obtain all necessary permissions from the SRA / other
authorities and complete the construction work of the Composite Building as per the
sanctioned plan and to rehabilitate the eligible slum dwellers of the S.R. Scheme
within a period of two years from 27th September, 2018.
11.20. Being aggrieved by the above Order of the AGRC dated 27 th September,
2018, the Petitioner Society fled the above Writ Petition on 17 th July, 2019, wherein
1 2006 SCC OnLine Bom 481
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they have prayed that the Order dated 27 th September, 2018 passed by the AGRC be
quashed and set aside on the grounds set out in the Writ Petition.
11.21. The Order of the AGRC is accepted by the Developers and is not
challenged before any Court, including this Court.
12. The Learned Advocate appearing for the Petitioner Society reiterated
the above facts and submitted before us that despite the aforestated miserable plight of
its members brought about by the Developers through inordinate delay in the
implementation of the Scheme since the year 2006 and not carrying out any
construction beyond the plinth since the year 2014 - 15 and also not making payment
of the agreed rent / compensation in lieu of the temporary transit accommodation
being made known to the AGRC, the AGRC proceeded to set aside the Order passed
by the CEO - SRA dated 23rd November, 2017, terminating the appointment of the
Developers as Developers of the S.R. Scheme, on the ground that: (i) the Developers
being owners have the frst option / choice to redevelop the Subject Plot owned by
them, (ii) that the Developers have already taken steps to redevelop the Subject Plot in
the year 2006, (iii) the Developers have already constructed the plinth for the
Composite Building as per the permission granted by the SRA. It is submitted on
behalf of the Petitioner Society that the AGRC completely ignored the fact that the
Developers were infact given the frst choice / chance to redevelop the Subject Plot
and about 80 slum dwellers allowed the Developers to demolish their huts and take
possession of the Subject Plot as far back as in the year 2010. It is submitted that
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though the Developers obtained the CC in the year 2014, except for constructing the
plinth in the year 2014-15, the Developers have thereafter not carried out any further
construction. However, the AGRC without mentioning anything about the default on
the part of the Developers in not carrying out any further construction after
completing the construction of the plinth in the year 2014-15, has in support of its
Order impugned herein, only recorded that the Developers have already constructed
the plinth as per the permission granted by the SRA. It is further submitted that the
AGRC ought not to have set aside the Order passed by the CEO - SRA on the ground
that if the Order of the CEO - SRA is upheld the same will cause a further delay in the
development of the Subject Plot of land in occupation of the Petitioner Society. It is
submitted that the AGRC did not appreciate that if the Order passed by the CEO -
SRA is set aside on the basis of fear that the same may cause further delay in the
development of the Subject Plot, and in the event of the Developers not complying
with the unconditional and unmonitored Order of the AGRC granting them two
months' time to pay the arrears of rent and further two years' time to obtain necessary
permissions to complete the construction and rehabilitate the members of the
Petitioner Society, the same will cause indefnite delay in the development of the
Subject Plot and unimaginable loss, injury and prejudice to the members of the
Petitioner Society. The Petitioner Society further submitted that the decision of the
Division Bench of this Court in the case of Awdesh Tiwari and Ors. (supra) is of no
assistance to the Developers since the Order passed by the CEO -SRA is after taking
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into consideration the facts and circumstances of the present case, which are in no way
similar to the facts and circumstance in the case of Awdesh Tiwari, and that in the
present case an individual slum dweller is not claiming any right to decide which
Society or which Developer should implement the Scheme and the Petitioner Society
has moved the SRA to change the present Developers and appoint a new developer to
implement the Scheme only because the present Developers as set out hereinabove,
have miserably failed to implement the Scheme. The Learned Advocate for the
Petitioner Society has also pointed out that the Developers have not only delayed the
payment of arrears but immediately from 2019 failed to pay and have till date not paid
a single Rupee towards transit accommodation to the members of the Petitioner
Society which has resulted in arrears mounting upto Rs. 2,89,75,500/- as on 30 th
September, 2020. The Developers have also failed to comply with the directions to
obtain necessary permissions from the SRA / other authorities and to put the
members of the Petitioner Society in possession of the rehab building on or before 27 th
September, 2020. In view thereof, the plinth constructed in the year 2014-15 is also
completely damaged / destroyed, as can be seen from the photographs taken on 13 th
August, 2020 and 9th December, 2020 and reproduced in paragraph 6 hereinabove. It
is therefore submitted that the Order passed by the AGRC dated 27 th September, 2018
deserves to be forthwith quashed and set aside.
13. The Developers have fled their Afdavit dated 11th December, 2020,
before us, wherein they have stated that since the area of the alternate accommodation
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required to be provided to the members of the Petitioner Society has been revised
from 269 sq.ft. to 300 sq.ft. they will have to submit revised plans and get them
sanctioned. They have further submitted that since they are the owners of the Subject
Plot, they are entitled to the frst option to be appointed as Developers and that the
Petitioner Society are concerned only with their limited right for alternate
accommodation and rent. The Developers have admitted that they have not paid rent
and are unable to pay the arrears of rent even as on date (which as per the table
submitted by the Petitioner Society aggregates to Rs. 2,89,75,500/- as on 30 th
September, 2020), due to slow-down in the realty market in the year 2019 and
thereafter due to the Pandemic. The Developers have submitted that they will deposit
an amount of Rs. 10 Lakhs in this Court within a period of two weeks and Rs. 20
Lakhs thereafter. The Developers states that they will fnalize the necessary steps in
carrying out the necessary procedures and calculations, as also the Schedule for
payment of rent, extension of time, revision of plan, etc. They will coordinate with the
Petitioner Society and their Advocate to try and workout a concrete workable
Schedule for completion of the Project and will come to this Court with the Consent
Terms.
14. The Petitioner Society has rejected the ofer of the Developers and have
submitted that not only the members of the Petitioner Society have been misled /
cheated by the Developers over the years, but the concerned authorities too have been
repeatedly misled by the Developers thereby bringing the members of the Petitioner
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Society almost on the streets. It is submitted that therefore the Petitioner Society / its
members cannot allow the Developers to mislead and cheat them anymore.
15. The Learned Advocate appearing for the Developers thereupon
reiterated what is stated in paragraph 5 of the Afdavit of the Developers dated 11 th
December, 2021 namely, that the Developers are in the hands of this Court and
considering the interest of everyone, particularly the Petitioner Society and the
Developers, this Court be pleased to pass such orders as it may deem ft in the interest
of justice and wellbeing of all. In view thereof, this Court has proceeded to hear the
matter fnally at the stage of admission.
16. Mr. Prasad Dhakephalkar, Senior Advocate appearing for the AGRC
submitted before us that the only reason why the AGRC proceeded to set aside the
Order of the CEO - SRA terminating the appointment of the Developers, as
Developers of the Slum Rehabilitation Scheme on the Subject Plot, is because if a new
developer is to be appointed as ordered by the CEO - SRA, the entire procedure will
have to be freshly initiated, which may not be in the interest of the slum dwellers /
members of the Petitioner Society. When this Court questioned Mr. Dhakephalkar
how an unconditional blanket extension was granted by the AGRC to the Developers
without verifying whether they are equipped to complete the construction (more so,
when they had admittedly failed to pay the agreed rent / compensation to the
members of the Petitioner Society) and without taking any undertaking to complete
the project within a specifed period and stipulating the consequences of default and
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without asking the Developers to fle progress reports with the SRA at regular
intervals, Mr. Dhakephalkar agreed that the Order of the AGRC is lacking in this
respect and the Court may direct the AGRC to introduce such efective measures in
its orders passed in future. This Court also pointed out to Mr. Dhakephalkar that in
view of the required care not being taken by the AGRC to ensure that its Orders are
implemented / complied with by the Developers, the Developers have in the present
case not moved an inch to comply with the directions of the AGRC, and it is the
members of the Petitioner Society who have sufered interalia due to such an
inefective Order.
17. We have perused the Writ Petition alongwith its Annexures, the
afdavit fled by the Developers, the submissions advanced by the Learned Advocates
for the Parties and the documents relied upon by them in support of their submissions
i.e. the photographs reproduced hereinabove and the statement showing arrears of
transit rent payable by the Developers to the members of the Petitioner Society as on
30th September, 2020.
18. The relevant provisions of the Maharashtra Slum Areas (Improvement,
Clearance and Redevelopment) Act, 1971 ('the Slum Act') and Regulation 33 (10) of
the Development Control Regulations for Greater Mumbai, 1991 (DCR) pertaining to
the Scheme of rehabilitation of slum dwellers, have been clearly explained by the
Division Bench of this Court in the case of Awdesh Tiwari vs. Chief Executive
Ofcere Slum Rehabilitation Authority and others (supra), paragraphs 12 to 15 being
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relevant, are reproduced hereunder :
"12. Now the question before us is the manner in which the scheme under Regulation 33(10) should be implemented. The entire case will have to be examined in the perspective of rights of the slum dwellers. Section 3-Y(1) of the Slum Act provides that the State Government or any ofcer generally or specially authorised by it is required to issue a photopass to the actual occupier of the dwelling structure in slum which is in existence on or prior to 1st January, 1995. Section 3-X(c) provides that "Protected occupier" means an occupier of dwelling structure who holds a photopass. Sub-section (1) of section 3-Z provides that save as provided in sub section (2) of section 3-Z no protected occupier shall be evicted from a dwelling structure. Sub- section (2) provides that the State Government in larger public interest can evict protected occupier from his dwelling structure subject to condition of relocating and rehabilitating the protected occupier in accordance with the scheme or schemes prepared by the State Government in this behalf. Section 3-X(a) defnes a "dwelling structure" to mean a structure used as a dwelling or otherwise and includes an out-house, shed, hut or other enclosure or structure, whether of bricks, masonry, wood, mud, metal or any other material whatsoever. Thus, occupants of the structures in slum area become protected occupiers provided as on 1st January, 1995 they are in occupation of a dwelling structure.
13. Regulation 33(10) of D.C. Regulations provides for a scheme for rehabilitation of slum dwellers. Under such rehabilitation scheme, there is a provision for providing a tenement in exchange of a dwelling structure whose inhabitants' names and structures appear in the electoral roll prepared with reference to 1st January, 1995. Clause (i) of Appendix IV of D.C. Regulation lays down that hutment dwellers in the slum or on pavement who are eligible in accordance with the provisions of D.C. Regulation 33(10) shall be entitled in exchange for their structure a residential tenement free of cost having carpet area of 225 sq.ft. including balcony, bath and water closet, but excluding common free of costs. Thus, the right of a hutment dweller who is in possession of a hutment on an area to which the Scheme is made applicable is for a tenement admeasuring 225 sq.ft. in exchange of the hut irrespective of the area of the hut. Thus, an individual hutment dweller gets this limited right apart from right to seek protection from eviction under section 3-Z(1) of the Slum Act. However, there is nothing in the scheme of D.C. Regulation 33(10) that an individual slum dweller gets a right to decide which Society or which developer should implement the scheme.
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14. Appendix IV of Regulation 33(10) provides that the land on which rehabilitation component is constructed will be leased to co-operative housing society of the slum dwellers on thirty years lease. Clause 2.1 of Appendix IV provides that the proposal for each slum rehabilitation project shall be submitted to Slum Rehabilitation Authority along with all necessary documents, no-objection certifcates, and the plans as may be decided by the. Slum Rehabilitation Authority from time to time. The SRA has issued Guidelines for implementation of SRA scheme. Clause 2 of the procedure incorporated in the said guidelines provides that 70% or more of the eligible slum dwellers in a slum or on pavement in a viable stretch at one place have to show their willingness to join Slum Rehabilitation Scheme and come together to form a proposed cooperative housing society. Clause 3 of the guidelines further provides that the chief promoter, ofce bearers and the members of the proposed society should collect the documents such as 7/12 extract and the Property Registration card of the plot on which the slum is situated. After collecting necessary documents, they should then get the plot surveyed/measured and prepare map of the plot showing slum structures thereon. While undertaking the survey, they should collect the information of the proposed members/slum-dwellers and fll up the self prepared Annexure-II prescribed by SRA. Annexure-H contains details of structures occupied by the slum- dwellers, their number and type of structures such as residential, industrial, commercial, amenity structures etc. and the list of eligible and ineligible occupants. The guidelines record that earlier procedure was that the promoter/co-operative housing society should frst approach competent authority for obtaining certifcation of Annexure- II before they can put an application for grant of scheme to the SRA. However, it is recorded that such procedure is discontinued and now the procedure provides that Annexure-II format is required to be flled up by the promoter/co-operative housing society for submitting the same along with proposal for sanction to SRA.
15. Competent Authorities for certifying Annexure II have been notifed. In case of the lands vesting in the State Governments Revenue Ofcers such as Additional Collector, Deputy Collector have been nominated. In case of lands vesting in the Municipal Corporation, the Municipal Ofcers have been nominated. The guidelines further contemplate that after obtaining name reservation of the proposed society, step should be taken to search a competent developer who will act as promoter of the scheme. The scheme provides that instead of appointing a developer, the society itself or a NGO can implement rehabilitation scheme as a promoter. After appointing a promoter, agreements are required to be executed by and between the promoters and the members. Thereafter, the promoter has to appoint an architect
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in consultation with the proposed co-operative housing society. The Architect is entrusted with the work of preparation of plans. The procedure contemplates that all required documents such as building plan, layout plan, property register plan along with Annexure-I, self prepared Annexure-II and Annexure-III should be submitted to the SRA by the architect along with application for sanction of Slum Rehabilitation Scheme. Annexure-I gives details of ownership of land, details of plot area, existing hutments, extent and type of reservations, amenities, FSI available etc. The prescribed format shows that Annexure-I is to be signed by architect and owner/chief promoter of the Society. Annexure-II is to be signed by the chief promoter of the Society/owner/developer/NGO. Annexure-HI is related to fnancial capability of the developer to execute SRA scheme which is required to be signed by the developer and architect. Clause No. 11 of Part IV of the Guidelines on the Procedure prescribes that after a pre-scrutiny by designated engineer of SRA with a view to ensure completeness of the proposal so far as a documents are concerned, proposals are accepted and computer fle number is allotted to the scheme on payment of scrutiny fees. Upon the acceptance of the proposal, the scrutiny of Annexure-I, Annexure-II and Annexure-III starts simultaneously and after scrutiny of the Annexures by diferent authorities, a letter of intent is issued. From the procedure prescribed, it is clear that a comprehensive application containing plans and other requisite documents, Annexure-I, Annexure-II and Annexure-III shall be submitted by the architect to the SRA and after ensuring that all documents are fled with the proposal a computer number is given to the fle and only thereafter scrutiny of all the three Annexures starts simultaneously."
19. As stated hereinabove, the slum dwellers residing on the Subject Plot
formed the proposed Society sometime in the year 2006. Since the Respondent No. 1 -
Developers are also the owners of the Subject Plot, the Petitioner Society, in the year
2006 passed a resolution at its Annual General Meeting appointing Respondent No. 1
- Developers, as Developers for the S. R. Scheme. Pursuant thereto, the Developers
on 22nd July, 2006 submitted to the SRA, a proposal for redevelopment of the Subject
Plot under Regulation 33 (10) of the DCR. On 8 th December, 2006 the Competent
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Authority issued certifed Annexure - II for total 141 slum dwellers out of which 124
slum dwellers were held eligible.
20. The Developers obtained, the LOI only on 1st June, 2010. In view
thereof, 80 slum dwellers handed over their respective huts to the Developers in the
year 2010 in reciprocation of a promise by the Developers to construct a Composite
Building within 24 months from the date of the receipt of the plinth CC and to
rehabilitate the members of the Petitioner Society and also in the meantime provide
compensation / rent in lieu of temporary alternate accommodation to the eligible
members. On the strength of the said promise the members of the Petitioner Society
arranged for temporary alternate accommodation and agreed to pay the license fee to
the licensors who had agreed to license their premises to the said members.
21. The Developers obtained the revised LOI on 15th September, 2011, the
amended IOD on 16th September, 2011 and the CC for the Composite Building only
on 7th June, 2014.
22. In the year 2014 - 15 the Developers carried out construction upto plinth
level and though they were required to construct the Composite Building and
rehabilitate the members of the Petitioner Society on or before 6 th June, 2016, the
construction remained at plinth level for all times and the members were left
completely high and dry, i.e. without their own roof over their heads. The Developers
also defaulted in making payments of the transit accommodation which had
accumulated substantially, putting the poor members of the Petitioner Society (the
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slum dwellers) into grave difculty and inconvenience, as they had on the strength of
the promise made by the Developers to make the monthly transit accommodation
payment, taken temporary accommodation on license, and subsequently received
eviction notice for defaulting in payment of the license fee. In other words, the
Developers by their irresponsible and insensitive conduct almost brought the members
of the Petitioner Society on the streets.
23. Pursuant to the representation dated 12 th August, 2016 fled by the
members of the Petitioner Society before the SRA setting out the aforestated facts, the
Assistant Registrar C.S. (Eastern & Western Suburbs) SRA, heard the Parties and
directed the Developers to pay rent / compensation to the eligible slum dwellers as per
the Circular No. 153 of the SRA.
24. The Developers failed to comply with the above directions. The
Developers are also responsible in causing inordinate delay in implementing the S. R.
Scheme. Such conduct of the Developers therefore compelled the Petitioner Society
to take a decision in its General Body Meeting held on 18 th December, 2016 to
terminate the appointment of the Developers and to appoint a new developer in their
place and by their Letter / Application dated 12th April, 2017, requested the SRA to
terminate the appointment of the Developers and to appoint the new developer/s in
their place.
25. On 30th April, 2017, a General Body Meeting of the Petitioner Society
was once again held in the presence of the Ofcers of the SRA. Out of 91 slum
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dwellers present at the meeting 85 slum dwellers decided to terminate the
appointment of the Developers of the S. R. Scheme.
26. A Show Cause Notice dated 19th May, 2017 was also issued to the
Developers calling upon them to explain as to why action under Section 13 (2) of the
Maharashtra Slum Areas Act (I.C. & R.) Act, 1971 (the Slum Act) should not be
initiated.
27. The CEO -SRA gave a hearing to the Petitioner Society as well as the
Developers and held that the Scheme is lingering for about 11 years and that the
Developers are not serious about implementation of the Scheme. At this stage the
Developers made an ofer to clear the arrears, not immediately but within 45 days,
which was correctly rejected by the CEO -SRA, who apparently, saw through the game
of the Developers to stall, for the time being, an adverse Order being passed against
them. It is obvious that the Developers by committing breach of the promises made to
the members of the Petitioner Society left them completely in the lurch, and as stated
hereinabove brought them almost on the streets. The reasons given for the delay,
including the allegations made against the members of the Petitioner Society, were
devoid of particulars and therefore the CEO -SRA ignoring the same, passed his
reasoned Order, the operational portion of which is reproduced hereunder :
"1. The appointment of the Respondent i.e. M/s Kanchi Builders and Developers as Developers of the subject S.R. Scheme on plot of land bearing C.T.S. No. 231(pt), 268 and 268(1) of Village Mogra Hanuman Nagar, Jogeshwari (East), Mumbai - 400 060 for Hanuman Nagar, ( Jogeshwari) SRA CHS (Prop.) is terminated w.e.f. 04.10.2017.
2. The Applicant is at liberty to appoint new Developer of their choice in
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accordance with rules, regulation and policy of SRA for implementation of S.R. Scheme and submit the proposal for acceptance to the SRA .
3. The Engineering Department of SRA to appoint Government Approved Valuer to value the expenses legally incurred by the Respondent Developer on site, within a period of two months from today, and inform the same to the Applicant Society.
4. The newly appointed Developer should reimburse the actual expenses legally incurred by the Respondent developer for implementation of the subject S.R. Scheme till date of his termination.
5. No Order as to the Costs."
28. Being aggrieved by the Order of the CEO- SRA dated 23 rd November,
2017, interalia terminating the appointment of the Developers, the Developers fled an
application before the AGRC, being Application (L) No. 107 of 2018 impugning the
Order passed by the CEO - SRA.
29. The AGRC by its Order dated 27th September, 2018, has set aside the
Order of the CEO -SRA dated 23rd November, 2017 and directed the Developers to
pay the arrears of the compensation in lieu of temporary transit accommodation to the
members of the Petitioner Society within a period of two months, i.e. on or before 27 th
November, 2018 and further directed, "in larger interest of slum dwellers and to enable
speedier implementation of subject S. R. Scheme" to obtain all necessary permissions from
the SRA / other authorities and complete the construction work of the Composite
Building as per the sanctioned plan and to rehabilitate the eligible slum dwellers within
a period of two years from 27th September, 2018 i.e. on or before 27 th September, 2020.
It is this Order which is impugned before us.
30. After going through the impugned Order passed by the AGRC, we have
noted that despite the aforestated miserable plight of the members of the Petitioner
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Society being brought about by the Developers, by causing inordinate delay in
implementing the S. R. Scheme since the year 2006, by not carrying out any
construction beyond the plinth since the year 2014-15 and also not making payments of
the agreed rent / compensation in lieu of the temporary transit accommodation, the
AGRC proceeded to pass the impugned Order on the grounds that the Developers
being owners of the Subject Plot have the frst option / choice to redevelop the
Subject Plot owned by them; that the Developers have already taken steps to redevelop
the Subject Plot in the year 2006 and the Developers have already constructed the
plinth for the composite building as per the permission granted by the SRA.
31. It is an admitted fact that the Developers being the owners of the Subject
Plot are already given the frst option / choice to redevelop the Subject Plot owned by
them. In fact, the Petitioner Society passed a resolution in the year 2006 appointing
them as the Developers for the Slum Rehabilitation Scheme and the Developers
thereupon submitted to the SRA a proposal dated 22nd July, 2006 for redevelopment of
the Subject Plot under Regulation 33(10) of the DCR. The Developers obtained an
LOI only on 1st June, 2010. Thereupon, 80 of the 124 eligible members immediately
handed over their huts to the Developers, i.e. in the year 2010 itself, to facilitate the
construction of the new building upon demolition of the said huts. It is also true that
though the redevelopment process began in the year 2006, the Developers obtained
the CC only on 7th June, 2014. In any event though the Developers were required and
had agreed to complete the construction of the Composite Building and to rehabilitate
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the eligible members of the Petitioner Society in the new building on or before 7 th June
2016, i.e. within a period of two years from the receipt of the CC, it is an admitted fact
that the Developers carried out construction upto the plinth by 2014-15, but thereafter
miserably failed to carry out any further construction. The AGRC has passed the
impugned Order without taking into account the aforestated facts. It is also pertinent
to note that the reasons given by the Developers before the AGRC explaining the delay
in completing the construction, are totally vague and devoid of any particulars and
therefore, except for setting out the same in the impugned Order, the AGRC has not
even attempted to comment upon and / or deal with the same.
32. The AGRC has in support of its Order dated 27 th September, 2018, also
recorded that if the Order of the CEO - SRA is upheld the same will cause a further
delay in the development of the Subject Plot in occupation of the Petitioner Society.
However, the AGRC failed to realize that a blanket Order passed by it, granting two
years time to the Developers to complete the construction of the Composite Building
and to put the members of the Petitioner Society in occupation of the same, without
verifying whether the Developers are fnancially and otherwise equipped to complete
the construction and without providing any safeguards to ensure compliance of the
Order, in the form of directions to the Developers to intimate to the SRA, from time to
time the progress of the construction, if breached will result in wasting two years
granted vide its impugned Order, thereby causing further delay, unimaginable
prejudice and hardship to the members of the Petitioner Society.
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33. The AGRC has in its impugned Order also referred to the decision of
this Court in Awdesh Tiwari & Ors. (supra) wherein it is held that, "there is nothing in
the Scheme of D.C. Regulation 33 (10) that an individual slum dweller get a right to decide
which Society or which Developer should implement the Scheme." As correctly submitted
by the Advocate for the Petitioner Society the said Judgement renders no assistance to
the Developers in the present case. In the present case an individual slum dweller is
not claiming any right to decide as to which Society, or which Developer should
implement the Scheme. In fact, in the present case only since the Developers as set
out hereinabove, have miserably failed to implement the Scheme, the Petitioner
Society is compelled to seek change of developers. The decision of Awdesh Tiwari &
Ors. (supra) does not hold that even if a Developer fails to implement the Scheme to
the satisfaction of the SRA and lets down the members of the slum society, as in the
present case, the members of the Society cannot approach the SRA to change the
Developer/s. In fact, we would like to make it clear that in the circumstances, as in the
present case, the SRA and / or the members of the slum society are certainly not
expected to be helpless spectators / victims of the unfair and unjust behavior on the
part of the Developer/s, but have every right to change / seek change of the erring
developer/s.
34. It is pertinent to note that in the case of Omkar Realtors & Developers
Pvt. Ltd. vs. Slum Rehabilitation Authority & Ors. 2, the Division Bench of this Court
2 2010 SCC Online Bom 1650
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(Coram: Mohit S. Shah, C.J. and D. Y. Chandrachud (DR.) J. as they then were), have
whilst dealing with an identical submission held as under :
"17. It is true that as per the aforesaid judgment of this Court, the individ- ual slum dweller may not have a right to decide which society or devel- oper should implement the scheme, but when the society itself has lost confdence in the developer whose acts of omission and commission have already been taken into consideration by the Slum Rehabilitation Author- ity and the Slum Rehabilitation Authority found substance in the griev- ances of the society, it is not possible to say that the views of the entire co
-operative society become irrelevant. The very fact that the scheme of the Slum Rehabilitation Authority provides that the developer should obtain consent of 70% of the members of the society goes to show that the devel- oper should have confdence of the society. May be after the LOI is issued in favour of the developer, if for some extraneous reasons the society passes a resolution for removing the developer without any justifcation, the views of the society may not be acted upon by Slum Rehabilitation Authority."
35. The impugned Order passed by the AGRC on the grounds set out
therein is therefore totally incorrect and exhibits lack of application of mind. Though
the AGRC has stated that the impugned Order is passed by them "in larger interest of
slum dwellers and to enable speedier implementation of subject SRA Scheme" they are
proved completely wrong, since as stated hereinabove the impugned Order which has
been breached by the Developers in its entirety, and the period of two years granted,
without the progress of work being monitored, has not only delayed the
implementation of the Scheme by two years, but the Developers have by their brazen
conduct of not making any payments since January 2019 towards transit
accommodation to the members of the Petitioner Society which as on 30 th September,
2020 has mounted to a whopping sum of Rs. 2,89,75,500/-, has almost brought the
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members of the Petitioner Society on the streets, since they are unable to pay the
license fee to their licensors.
36. The Learned Advocate appearing for the Developers has submitted that
since the Developers are now required to provide permanent accommodation to each
of the members of the Petitioner Society admeasuring 300 sq.ft., instead of the earlier
requirement of providing an area of 269 sq.ft., he will now have to submit fresh plans
seeking approval / sanction. The Developers as well as his Advocate are required to be
reminded that the said requirement is in force with efect from 24 th October, 2018. In
any event, the Developers admit that till date, i.e. even now when the matter is being
heard by the Court, they have not made any application seeking necessary permissions
and nor have they submitted any plans seeking approval / sanction. Again, though the
Developers have failed to pay the compensation in lieu of temporary alternate
accommodation to the members of the Petitioner Society since the last two years
aggregating to approximately Rs. 3 Crores, even at this stage the Developers have
informed this Court that they are not in a position to clear a substantial part / portion
of the arrears, but can only deposit Rs. 10 lakhs and that too after two weeks and Rs.
20 Lakhs two weeks thereafter. We are therefore convinced that the Developers do not
have the requisite fnancial capacity even at this stage to pay to the members of the
Petitioner Society their dues, which are pending since January 2019 and aggregates to
much more than Rs. 3 Crores as on date. We are also convinced that the modus
operandi adopted by the Developers is that it is only when they (Developers) are
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compelled to appear before the Court / authorities and they realize that adverse
Orders will be passed against them, that they agree to pay a fraction of the huge arrears
to the members of the Petitioner Society, and thereby seek and obtain an extension of
time to complete the project, only to once again let down the members by not making
any payments towards transit accommodation and also not take any steps to redevelop
the Subject Plot. This is more clearly established from the fact that despite the AGRC
having passed the impugned Order on 27th September, 2018, the condition of the
Subject Plot even on 23rd August, 2020 and 9th December, 2020, as can be seen from
the photographs produced in paragraph 6 of this Order, wherein even the plinth which
was admittedly constructed in the year 2014 - 15 is destroyed. The Learned Advocate
appearing for the Petitioner Society has informed us that about 17 members after a
long wait, and with the hope to see the light of the day when the new tenements would
be allotted to them, have passed away. We cannot be a party to such misery faced by
the members of the Petitioner Society at the hands of the Developers, who as stated by
the AGRC have "taken steps for redevelopment" in the year 2006, and have till date
left the Subject Plot in the condition shown in the photographs at paragraph 6
hereinabove. We therefore set aside the Order passed by the AGRC dated 27 th
September, 2018. The Writ Petition is accordingly disposed of.
37. Before parting with this Order, we would like to record that even in
matters where the authorities like the CEO - SRA and / or AGRC are of the view that
the time to complete the slum redevelopment projects should be granted to the
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defaulting / erring developers, instead of granting unconditional / blanket extension/s
of time to them, should frst verify whether the concerned developer/s is / are
fnancially and/or otherwise equipped to complete such projects within the extended
time lines. In addition thereto, the authorities should also take a bar chart from the
Developer/s showing how the work would progress during the extended period
alongwith the necessary undertakings from the Developers with regard to completion
of the project within such extended time line and also call for compliance reports from
time to time from the concerned developer/s showing as to whether the work has
progressed as per the bar chart submitted. Such vigilance and meaningful monitoring
by the authorities like the CEO - SRA and / or AGRC alone will ensure that the
orders passed by them do not merely remain paper orders incapable of providing the
requisite relief to the slum dwellers.
(RIYAZ I. CHAGLA, J. ) ( S.J.KATHAWALLA, J. )
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