02 April 2024 Property/Real Estate Law >> Property & Real Estate  

A redevelopment project in Mumbai has hit a roadblock after the Apex Grievance Redressal Committee (AGRC) challenged the appointment of a chosen developer. M/s. Sateri Builders and Developers LLP (Developer) along with Shree Gurukrupa (SRA) Co-operative Housing Society (Society) have filed a writ petition against the AGRC order.

The dispute centers around two adjacent plots of land owned by the Municipal Corporation of Greater Mumbai (MCGM). One plot is occupied by the Society (Final Plot No. 187), while the other is occupied by slum dwellers on a designated DP Road area. Both groups are seeking redevelopment under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971.

The Society appointed the Developer for its redevelopment scheme. However, the AGRC allowed an application filed by the occupants on the DP Road area, who objected to being included in the Society's scheme and challenged the appointment of the Developer.

The Developer and Society argue that the AGRC order is flawed. They claim the slum dwellers lack the legal standing (locus standi) to challenge the decision as they would ultimately benefit from the scheme by receiving rehabilitation tenements. Additionally, they assert the Society's right to choose its developer and maintain that the Developer followed all SRA procedures and approvals.

The petition suggests a possible conflict with another developer attempting to take over the project.

The AGRC further cited the Atesham Ahmed Khan Case as a precedent, emphasizing the importance of complete SR scheme applications with proper consent. Consequently, they nullified the appointment of the developer.

Unhappy with this decision, Shree Gurukrupa CHS and the developer are challenging the AGRC's verdict in court. Key points of contention include the validity of the revised proposal encompassing the D.P. Road area and the feasibility of including additional residents while ensuring their consent and financial viability within the project.

This case highlights the complexities involved in slum rehabilitation projects in Mumbai. Balancing the needs of developers, existing residents, and those seeking inclusion requires careful planning, adherence to regulations, and ensuring everyone has a voice in the process.

Unresolved Issues Await Court Decision:

The crux of the dispute revolves around three key issues. First, whether the DP Road area was rightfully included in the revised scheme. Second, whether the developer obtained the required consent from slum dwellers. Finally, the court must determine whether the opposing society has a legitimate claim to challenge the scheme.

Court's Focus and Concerns:

The court is tasked with ensuring the SR Scheme adheres to the objectives of the Slum Areas (Improvement, Clearance and Redevelopment) Act, which prioritizes slum rehabilitation and public interest. Additionally, the court seems wary of the motives behind the opposing society's intervention.

Uncertainties Remain:

A critical, yet unresolved point, is the eligibility of some DP Road residents, particularly those appearing to be family members with multiple structures. The court's decision on these issues will determine the fate of this SR Scheme and the living conditions of the affected slum dwellers.