Presidential assent for amendment to Mhada Act for cessed buildings in process: Centre to HC

On its part, the state government informed the bench that it had amended the relevant section of the Mhada Act, which would enable it to take over such projects and complete them at its own cost soon after Presidential assent

The Bombay high court (HC) has asked the Union government to inform it of the status of the President assent to a bill passed by the Maharashtra government enabling it to take over pending projects under the Mumbai Building Repairs and Reconstruction Board (MBRRB) of the Maharashtra Housing and Area Development Authority (Mhada).

While responding to the direction of the bench to place their view on the issue of Presidential assent on the amendment to Mhada Act , additional solicitor general Anil Singh informed the bench of the status of the bill and also informed that the process for obtaining the assent of the President was underway. (Getty Images/iStockphoto)

The directions were issued after petitioners of cessed buildings who are affected by projects pending since 2017, approached the HC seeking directions to the state to take over the projects as the developers had abandoned them. On its part, the state government informed the bench that it had amended the relevant section of the Mhada Act, which would enable it to take over such projects and complete them at its own cost soon after the President assent was granted and the bill became effective.

A division bench of justice Ujjal Bhuyan and justice Madhav Jamdar, while hearing the petition of Navin Gupta, was informed by advocates JM D’Silva and VN Gupta that the petitioner was living in a cessed building- repairs and reconstruction of which came under the purview of the MBRRB. The advocates added that the contractor/developer had defaulted in completing the project as a result of which the petitioner and many others like him living in cessed buildings were left without a roof on their head.

In light of these submissions, the advocates sought directions from the state to acquire the projects and ensure their completion.

While responding to the grievance of the petitioner, additional government pleader Hemant Haryan submitted that the state government had amended the Mhada Act to insert section 91-A which would enable the state government to acquire the projects and complete them. Haryan submitted that the amendment had been passed by both the houses of the state legislature and was now awaiting the assent of the President.

Last September, the state legislature had passed an amendment allowing the Mhada to redevelop or repair dilapidated and cessed buildings to protect the interest of the occupants of such structures. Both the Houses of the legislature had passed an amendment in the Mhada Act, 1976, empowering the authority to take over the cessed buildings, with the consent of 51% occupants, if the owners and housing societies failed to redevelop them within a year of the notification.

Haryan had further submitted that the state could not proceed in the absence of such assent, therefore views from the Central government may be obtained.

While responding to the direction of the bench to place their view on the issue of the assent of the President, additional solicitor general Anil Singh informed the bench of the status of the bill and also informed that the process for obtaining the assent of the President was underway.

The court accepted the report by the ASG and placed the petition for hearing on November 29.

Numerous petitions have been filed in HC by occupants of cessed buildings in the city especially in the south and central Mumbai after the developer/contractor defaulted or abandoned the project which was entrusted to them by the MBRRB. As some of these buildings are in an extremely dilapidated condition but as the Mhada Act did not permit the state government to acquire the projects the petitioners have approached the HC seeking relief. The nod from the President will ensure that the buildings are either repaired or redeveloped by the state to ensure that there is no loss of life or property to occupants in case of any collapse similar to the building in Malwani which collapsed and killed 12 people including eight children.