LAWS(BOM)-2012-3-107

ADVANI BUILDERS PVT LTD Vs. SLUM REHABILITATION AUTHORITY

Decided On March 30, 2012
ADVANI BUILDERS PVT. LTD. Appellant
V/S
STATE OF MAHARASHTRA Respondents

JUDGEMENT

(1.) Rule, returnable forthwith. Respondents waive service, Heard finally by consent of parties.

(2.) The Petitioner has challenged the order dated 20.10.2011 of the High Power Committee functioning as an appellate authority in respect of matters under the Slum Rehabilitation Act. The High Power Committee has confirmed the order of the Chief Executive Officer, Slum Rehabilitation Authority/ Respondent No.2 terminating the Petitioners appointment as a Developer of a part of land under a Slum Rehabilitation Scheme at Dindoshi, Goregaon (East), Mumbai. The petitioner had been appointed as a developer for the Trimurti SRA Co operative Housing Society i.e. Respondent No.3 which was formed by the occupants of a piece of land owned by the Government of Maharashtra and the Bombay Municipal Corporation, in accordance with the resolution of the said Co operative Housing Society.

(3.) A Letter of Intent, (hereinafter referred to as LOI ), was issued in favour of the Petitioners on 5 th November, 2007 by the Deputy Chief Engineer, Slum Rehabilitation Authority, approving the Petitioners proposal for developing a slum as a Slum Rehabilitation Scheme on the said plot (hereinafter referred to as the said plot ). The LOI, vide Clause 46, was valid for a period of three months from the date of the issue unless an intimation of approval as a commencement certificate was obtained for any one building. In June, 2008, there was a change in the policy whereby the area of the flats to be constructed was increased from 225 sq.ft. to 269 sq.ft. Apparently, work was not commenced by the Petitioners for a period of about four years. Having waited long for the work to commence, the Respondent No.3 Trimurti SRA Co operative Housing Society passed a resolution on 8 th November, 2009 in its General Meeting to terminate the appointment of the Petitioners as a Developer. On 23 rd March, 2010, the Slum Rehabilitation Authority issued a notice to the Petitioners referring to Condition No.46 and stating that the validity of the LOI has already expired on 4 th February, 2008 and since the Petitioners have not obtained any intimation of approval and Commencement Certificate, the Petitioners have committed a breach of terms and conditions of the sanctioned SRA Scheme. The Petitioners were called upon to show cause why an order should not be passed in exercise of powers under Section 13(2) of the Maharashtra Slum Areas Act, 1971 (hereinafter referred to as the Act). The said provision empowers the Slum Rehabilitation Authority, where work of redevelopment has not been commenced by the owners, to pass an order determining the redevelopment of the land at its own costs after giving the owners a reasonable opportunity of showing cause. After considering the Petitioners reply, the Slum Rehabilitation Authority, having regard to the decision to terminate the Petitioners appointment as a Developer for SRA Scheme in exercise of the powers under Section 13(2) of the Act by letter dated 16 th November, 2010, took cognizance of the resolution passed in the Special General Body Meeting of the Trimurti SRA Co operative Housing Society. This order of termination was signed by the Deputy Chief Engineer, Slum Rehabilitation Authority, as directed by the Chief Executive Officer, Slum Rehabilitation Authority/Respondent No.2, who had heard the Petitioners. On the same day, the Slum Rehabilitation Authority, in accordance with the resolution of the General Body of the Trimurti SRA Co operative Housing Society Ltd. passed on 27 th September, 2010, appointed M/s. Sunshine Housing & Infrastructure Private Limited, the respondent No.4 as a Developer.