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

A slum rehabilitation project in Mumbai has hit a roadblock as the developer challenges the termination of his contract by the Slum Rehabilitation Authority (SRA). The dispute centers on delays in completing the project and alleged irregularities by the developer.

The developer, identified only as the petitioner in court documents, claims he has substantially completed the project by constructing the new housing units for slum dwellers. He argues that delays in obtaining the occupancy certificate, a crucial document for residents to move in, are beyond his control.

However, the SRA and societies representing the slum dwellers (Respondents 2 & 3) paint a different picture. They allege the developer has taken over 20 years to complete the project and point to irregularities like exceeding sanctioned floors and inducting unauthorized occupants. They also claim the developer attempted to trade project rights with another builder (Respondent 4) before completing his obligations.

Termination and Appeal

Citing the developer's failure to adhere to plans and timelines, the SRA terminated his contract under Section 13(2) of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. The developer contested this decision, arguing Section 13(2) is not meant for disputes regarding developer selection but for genuine breaches of contract.

The developer further challenged the order of the Apex Grievance Redressal Committee (AGRC) which upheld the termination. He claims the AGRC did not properly consider his arguments before its decision.

Court to Decide Developer's Fate

The court will now weigh the arguments and evidence presented by all parties. Key points to consider include:

• Did the developer's delays breach the contract, justifying termination?
• Were the alleged irregularities significant enough to warrant such action?
• Did the SRA and AGRC follow proper procedures in terminating the contract?

Termination Upheld by Court:

· The court, after reviewing the evidence, found the developer's actions to be a clear breach of contract. The delays, unauthorized construction, and failure to fulfill obligations towards the slum dwellers justified the termination of the contract under Section 13(2) of the Slum Act. The court also rejected the developer's claims that the termination was due to a dispute with another developer.

New Hope for Slum Residents:

· With the court's decision, the termination of the developer's contract stands. This paves the way for the SRA to appoint a new developer who can finally complete the long-awaited project. The residents, who have been waiting for proper housing for over 20 years, can now hope for a swift conclusion.

  SLUM AREAS (IMPROVEMENT AND CLEARANCE) ACT, 1956