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

The Supreme Court has ruled that a slum rehabilitation scheme cannot be viewed as a real estate development project, as it involves a public purpose connected to the right to life of citizens living in pathetic conditions.

Slum Rehabilitation SchemeReal Estate Development ProjectSupreme CourtMaharashtra Slum Areas ActSlum Rehabilitation AuthorityReal Estate MaharashtraAug 01, 2024

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

Frequently Asked Questions

What is the main purpose of the Slum Rehabilitation Scheme?

The main purpose of the Slum Rehabilitation Scheme is to improve the living conditions of slum dwellers and provide them with better housing facilities.

Can a slum rehabilitation scheme be treated as a real estate development project?

No, according to the Supreme Court, a slum rehabilitation scheme cannot be treated as a real estate development project, as it involves a public purpose connected to the right to life of citizens living in pathetic conditions.

What is the role of the Slum Rehabilitation Authority (SRA) in implementing the Slum Rehabilitation Scheme?

The SRA is responsible for implementing the provisions of the Maharashtra Slum Areas Act and ensuring that slum rehabilitation projects are completed within the stipulated time.

What happens if a slum rehabilitation project is delayed?

If a slum rehabilitation project is delayed, the SRA can take action and hand over the project to another agency, as empowered by Section 13(2) of the Maharashtra Slum Areas Act.

What is the significance of the Supreme Court judgment in this case?

The Supreme Court judgment emphasizes the importance of timely completion of slum rehabilitation projects and holds the SRA and CEO responsible for ensuring that such projects are completed within the stipulated time.

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