Mumbai Court Nullifies SRA Acquisition of NESCO Goregaon Land for Slums
The Bombay High Court has delivered a landmark ruling that invalidates the acquisition of land owned by NESCO Limited in Goregaon East by the Maharashtra Slum Rehabilitation Authority (SRA). The decision underscores the necessity of protecting private property rights under the Constitution and highlights significant procedural lapses in the SRA’s actions.
The division bench of the High Court ruled that the SRA and state authorities failed to respect NESCO’s “preferential right” to redevelop its own property, as enshrined under Article 300A. The court criticized the authorities for invoking Section 14 of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, without providing the landowner an opportunity to propose a redevelopment plan. The court described such actions as “mechanical and at the behest of unscrupulous elements.”
The case traces back to April 2016 when the SRA notified its intention to acquire two plots at Ram Nagar, Goregaon East, which were then occupied by slum dwellers. NESCO challenged the move, contending that the acquisition ignored legal processes, denied proper hearings, and offered compensation of just ₹12 lakh, which it deemed inadequate. Interestingly, the slum dwellers themselves supported NESCO’s petition. During hearings, residents revealed that their previous builder had failed to implement rehabilitation projects as promised, passing a resolution in 2025 to work with NESCO and its associate for the redevelopment initiative.
This unusual alignment underscores the complex dynamics between private developers, civic authorities, and community stakeholders in urban redevelopment projects. The High Court criticized the bureaucratic misuse of slum redevelopment laws, echoing concerns raised by the Supreme Court over private gain under the guise of public welfare. “Such powers can never be exercised at the behest of unscrupulous elements while discarding legal rights of private landlords,” the bench observed, highlighting a recurring governance gap in slum rehabilitation practices.
By setting aside the 2016 acquisition notice, the 2017 compensation award, and subsequent SRA notifications, the court has reinforced the principle that private ownership rights must be balanced with social objectives. Experts note that this ruling could set a precedent for future redevelopment projects, signaling to authorities the importance of due process, transparent procedures, and equitable engagement with both landowners and slum communities. Officials from urban development and housing departments indicated that the SRA will need to revisit procedural norms and ensure robust legal compliance before initiating any acquisitions.
This case also emphasizes the need for sustainable urban planning practices that protect the rights of stakeholders while pursuing inclusive city development. As Mumbai continues to expand, balancing land acquisition for social housing with respect for private property remains a delicate task. The High Court ruling reinforces that urban redevelopment must uphold constitutional rights, maintain transparency, and foster trust between authorities, developers, and citizens.
