Supreme Court Holds Slum Rehabilitation Scheme Not a Real Estate Development Project
The Supreme Court has ruled that a slum rehabilitation scheme cannot be viewed as a real estate development project, as it serves a public purpose and is connected to the right to life of citizens living in poor conditions.
Slum RehabilitationReal Estate DevelopmentSupreme CourtPublic PurposeRight To LifeReal Estate MumbaiAug 01, 2024
In this case, the appellant was appointed as a developer by a cooperative housing society of slum dwellers in Borivali, Mumbai, in 2003. However, the development was unduly prolonged for over two decades. The Apex Grievance Redressal Committee (AGRC) terminated the agreement in 2021, citing the developer's failure to complete the project within the stipulated time.
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 cases, 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), which emphasized the importance of completing slum rehabilitation projects within the stipulated time. Resultantly, the court dismissed the civil appeal and imposed costs of Rs. 1,00,000 payable to the Supreme Court Mediation and Conciliation Project Committee.
Frequently Asked Questions
What was the main issue in the case of Yash Developers v. Harihar Krupa Co-operative Housing Society Limited & Ors?
The main issue was whether a slum rehabilitation scheme can be viewed as a real estate development project.
What was the Supreme Court's ruling on this issue?
The Supreme Court ruled that a slum rehabilitation scheme cannot be viewed as a real estate development project, as it serves a public purpose and is connected to the right to life of citizens living in poor conditions.
What is the role of the Slum Rehabilitation Authority (SRA) in slum rehabilitation projects?
The SRA and its CEO are statutorily bound to ensure that the rehabilitation project is completed within the stipulated time.
What happens if a developer fails to complete a slum rehabilitation project within the stipulated time?
The SRA can terminate the agreement and hand over the project to another agency.
What was the outcome of the case of Yash Developers v. Harihar Krupa Co-operative Housing Society Limited & Ors?
The Supreme Court dismissed the civil appeal and imposed costs of Rs. 1,00,000 payable to the Supreme Court Mediation and Conciliation Project Committee.
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