Bombay HC Invalidates Government’s Cancelation Order on Chembur Slum Rehabilitation
The Maharashtra government had recently ordered the cancelation of permission granted for an integrated development scheme for redeveloping a slum in Chembur. However, the Bombay High Court has now quashed the government order.
Background
The Chembur slum redevelopment project involves rehabilitating approximately 7,000 slum dwellers. The slum is spread over an area of 1.9 lakh sq.mt (20.45 lakh sq.ft). The go-ahead for redeveloping the slum was given during the previous chief minister’s tenure in November 2010. The Slum Rehabilitation Authority (SRA) also had given a nod immediately. Sterling Buildcon Private Ltd had taken up the slum redevelopment project.
The standard norm for slum redevelopment is that the developer must obtain consent from at least 70% of the slum dwellers for redeveloping the slum. However in this case, the then government used the 3K clause of the SRA Act. According to this clause, the developer can bypass the 70% consent norm during the initial stages of development. SRA can also be directed by the government to hand over slum land to a developer without issuing tenders.
SRA had directed the developer to obtain consent within a year of certifying the list of eligible slum dwellers. This population owns over 54% of the land under redevelopment.
Reasons for cancelation order
The current government reviewed the project and contended that the order from the SRA to the developer had diluted consent condition. It said that the SRA had allowed the developer to commence the redevelopment work after submitting consent of 70% slum dwellers from only one of the four sectors. The current government also raised objections to the condition that sector-wise consent could be submitted in an year of certifying the slum dwellers.
Following this, the Maharashtra government ordered the cancelation of the SRA order and the letter of intent (LoI) issued to the developer claiming that the SRA order would allow the developer to block the land for an unlimited time period.
Court hearing
The developer, Sterling Buildcon Private Ltd challenged this decision by the Maharashtra government in the Bombay High Court. The developer stated that it had already spent time and money on the project. The Bombay High Court invalidated the cancelation order by the government saying that the arguments made by the government-lacked substance.
