HC slams state for ‘gross abuse of power’ in Borivali slum scheme

A division bench of justices G.S. Kulkarni and Aarti Sathe said the manner in which the authorities acted had “very seriously shocked the conscience of the court”, observing that the “ghost of the litigation continues to haunt the court” and demonstrates how judgments of constitutional courts can be “systematically defeated or rendered meaningless”

MUMBAI: The Bombay High Court on Thursday came down heavily on the Maharashtra government and slum rehabilitation authorities, terming their decision to appoint a new developer for a long-stalled slum rehabilitation project in Borivali East a “gross abuse of power” and violation of the orders passed by the Supreme Court and the high Court.

Bombay High Court at Fort (Anshuman Poyrekar/HT PHOTO)

A division bench of justices G.S. Kulkarni and Aarti Sathe said the manner in which the authorities acted had “very seriously shocked the conscience of the court”, observing that the “ghost of the litigation continues to haunt the court” and demonstrates how judgments of constitutional courts can be “systematically defeated or rendered meaningless”.

The court was hearing a petition filed by Jitendra Rambadai Gupta, 43, representing members of Haribar Krupa Co-operative Housing Society Ltd., Borivali East. Gupta stated that Yash Developers was appointed as the project developer through a development agreement dated August 20, 2003. However, the construction had not commenced even in June 2021.

After repeated complaints by the society, the Slum Rehabilitation Authority (SRA) issued a show-cause notice to Yash Developers, but later dropped the proceedings on March 16, 2021. Challenging this, the society approached the Apex Grievance Redressal Committee, which, on August 4, 2021, permitted the society to appoint a new developer.

Subsequently, Opal Builders was appointed and the assistant registrar of co-operative societies was informed.

Following this, Yash Developers challenged the committee’s decision before the Bombay High Court in 2021. After the petition was dismissed, the developer moved the Supreme Court, which, on November 25, 2022, directed the parties to maintain status quo.

Meanwhile, Gupta pointed out that the State government issued a resolution on May 25, 2022, aimed at reviving stalled slum rehabilitation schemes. Under this policy, Thar Commercial Finance Pvt. Ltd. proposed the appointment of Veena Developers as the new developer. Gupta alleged that Yash Developers had earlier entered into a joint venture with Veena Developers and executed a deed of mortgage in 2019.

Despite this, the Housing Department, on March 14, 2024, approved the proposal and appointed Veena Developers to implement the project. Terming this a clear attempt to bypass court orders, the society sought a stay on the operation and execution of the Housing Department’s decision.

During the hearing on Thursday, the bench noted that earlier observations of both the High Court and the Supreme Court “speak volumes about the complete incapacity of Yash Developers to execute the project” and the inordinate delay of nearly 18 years. The court described the appointment of Veena Developers as a “backdoor entry” that was “astonishing” and “well planned in a clandestine manner”.

Prima facie, the bench held that the March 14, 2024, order amounted to a “gross abuse of powers and authority” and said the Housing Department had no jurisdiction to appoint or recognise a developer in a manner that completely circumvents statutory provisions governing slum rehabilitation schemes.

“What is evident is a pattern where developers and financiers have taken the slum dwellers to a ransom. The ultimate victims being the slum dwellers. They are wholly sandwiched in the fight/proceedings between Yash and its associates and in these circumstances, they continue to be deprived of their basic right to decent shelter for more than two decades and face a daily ordeal of residing in unhygienic slum conditions,” the bench observed.

The court also noted that the land in question is not a private land, but a public land belonging to the Municipal Corporation, and stated that the corporation appears “not even remotely concerned” with the ground realities. “It is clear that the authority has remained mute spectators to the ordeal and the plight of the slum dwellers”, it said. Accordingly, the court stayed the March 2024 order passed by the Housing Department till the final disposal of the petition and postponed the matter for final hearing on February 24.