Bombay High Court Bars Large Public Land Transfer Under Slum Scheme Guise

The Bombay High Court has ruled that large public lands in Mumbai cannot be transferred to private developers under the guise of a slum rehabilitation scheme, emphasizing the need to prioritize public interest and open spaces.

MumbaiBombay High CourtSlum RehabilitationPublic LandConstitutional PrinciplesReal Estate MumbaiOct 02, 2025

Bombay High Court Bars Large Public Land Transfer Under Slum Scheme Guise
Real Estate Mumbai:The Bombay High Court has issued a strong ruling against the transfer of large public lands to private developers under the guise of a slum rehabilitation scheme. Justices Girish Kulkarni and Aarti Sathe expressed concern over the state's largesse, particularly regarding a 33-acre prime land in the Cuffe Parade/Colaba area of south Mumbai. This land, one and a half times the size of Oval Maidan, is a vital public asset that should not be permanently removed from the public domain for private development.

The High Court observed that slum dwellers' rights cannot outweigh the public interest, and such vast lands must be utilized for public purposes. The court was informed that a slum society, formed by 65,000 encroachers, wants the land to be developed by a private builder, Precaution Properties Pvt Ltd. The bench noted that granting such largesse, especially free of cost, to 65,000 slum dwellers is detrimental to the long-term needs of the city.

The slum society and the builder challenged the denial of a no-objection certificate (NOC) by the defense ministry to proceed with a Slum Rehabilitation Authority (SRA) project. The HC observed that with the city already suffering from unbridled construction and a lack of open spaces, the SRA's eagerness to permit such vast government land to be extinguished from the public pool is concerning. The Slum Act, the court emphasized, cannot override constitutional principles and strict adherence to these principles by authorities is mandatory. Any other interpretation would be a fraud on the Constitution.

The court noted that the land in south Mumbai was initially allowed to be encroached upon and is now sought to be privately developed under the guise of a slum scheme, a common modus operandi to siphon off valuable public lands. Mumbai, being an island city, has limited government land available for public purposes. The judges highlighted that prime sea-facing land in south Mumbai is invaluable for various public needs.

The HC directed the Maharashtra government to file an affidavit and state if the Cabinet took any well-considered decision to allocate such a large land area for slum redevelopment. The state must also inform if the collector made efforts to obtain a decision from the highest level of the State. The court stated that if no such decision was taken, it has serious doubts about whether any slum redevelopment could be permitted on such a prime plot, given the scarcity of space for vital public amenities.

The HC also directed the defense ministry, state revenue and urban development departments, and the chief executive officer of the SRA to file affidavits in response within ten days. The next hearing is scheduled for October 15. The court sought the assistance of the state advocate general in the matter.

The petitioners argued that 65,000 slum dwellers have been languishing for over two decades, and no builder has been able to implement a scheme. When Precaution Properties' proposal was finally accepted, it faced litigation for over a decade. The last opposition came from the defense authorities, which was the only remaining challenge before the court. Further delays or derailment of the project, they argued, would not be in the public interest and would be detrimental to the residents of the locality in Cuffe Parade.

Frequently Asked Questions

What is the main issue addressed by the Bombay High Court?

The main issue addressed by the Bombay High Court is the transfer of large public lands to private developers under the guise of a slum rehabilitation scheme, which the court ruled is against public interest.

Why is the 33-acre land in Cuffe Parade/Colaba area significant?

The 33-acre land in Cuffe Parade/Colaba is significant because it is prime sea-facing land in south Mumbai, one and a half times the size of Oval Maidan, and is invaluable for public purposes such as gardens and open spaces.

What did the slum society and builder want to do with the land?

The slum society, formed by 65,000 encroachers, and the builder, Precaution Properties Pvt Ltd, wanted to develop the land for private use, which the court deemed detrimental to public interest.

What did the Bombay High Court direct the Maharashtra government to do?

The Bombay High Court directed the Maharashtra government to file an affidavit stating if the Cabinet took a well-considered decision to allocate the large land area for slum redevelopment and if the collector made efforts to obtain a decision from the highest level of the State.

What is the next step in the legal process?

The next step in the legal process is for the defense ministry, state revenue and urban development departments, and the chief executive officer of the SRA to file affidavits in response within ten days, with the next hearing scheduled for October 15.

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