Real Estate Maharashtra

Slum Rehabilitation Scheme: Not a Real Estate Development Project, Says Supreme Court

By GeoSquare News Desk · Published 2024-08-01

A recent judgment by a Supreme Court bench of Justices PS Narasimha and Aravind Kumar has clarified that a slum rehabilitation scheme cannot be treated as a real estate development project. The court held that there is a public purpose involved in such schemes, which is inextricably connected to the right to life of some citizens who are living in pathetic conditions. The case involved a developer who was appointed by a co-operative house society of slum dwellers in Borivali, Mumbai, in 2003.

However, the development was allegedly delayed for over two decades, leading to the termination of the agreement by the Apex Grievance Redressal Committee (AGRC) under the Maharashtra Slum Areas Act. The Supreme Court has held that the Slum Rehabilitation Authority (SRA) and the Chief Executive Officer (CEO) of SRA are statutorily bound to ensure that the rehabilitation project is completed within the stipulated time.

The court rejected the argument of the appellant, stating that the delay of 8 years in resolving disputes with a competing builder cannot be a justification under any circumstance. The court also referred to previous judgments, including Susme Builders Pvt. Ltd. v. CEO, Slum Rehabilitation Authority & Ors (2018) and Tulsiwadi Navnirman Co-op Housing Society Ltd. & Anr. v. State of Maharashtra & Ors. (2008), to emphasize the importance of timely completion of slum rehabilitation projects.