KAMLAKAR R. SHENOY Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The petitioner alleges the unholy nexus, between the defaulting Developers and the Officials of the Maharashtra Housing and Area Development Authority ("MHADA" for short), which caused and resulted in unlawful losses to the States' exchequer to the tune of Rs.40 thousand crores by virtue of defaulting builders not surrendering surplus area of approximately 1.37 lakh sq.mtrs (30 lakhs sq.ft saleable area) which otherwise is exclusive property of the State in terms of the Scheme, floated by the State Government under the Development Control Regulation 33(7)("DCR" for short). The petitioner alleged, though this fact was well within the knowledge of officials of MHADA, as could be discerned from the correspondence, yet despite repeated reminders to take steps for effecting recovery of property which belongs to the State, nothing has been done and no action has been taken against the defaulting developers by such Public Officials (Public Servants) knowingly and/or intentionally who are duty bound not only to protect the interest of the State but also to discharge their duty honestly. The petitioner thus alleged that, willful acts of omission and commission on the part of the officials of the MHADA not only caused wrongful loss to the State but wrongful gain to the developers. On these broad allegations, the petitioner is seeking following reliefs :

(2.) Before adverting to the facts of the case, it may be stated that, the respondents no.2, 3 and 4 are the State Agencies and fifth respondent is Authority (Executive Officer) of MHADA established under Section 3 of the MHADA Act, 1976. Chapter- VIII of the MHADA Act contains provisions relating to repairs and reconstruction of dilapidated buildings. Under Section 18 of the Act, the State of Maharashtra has established the Mumbai Housing and Area Development Board (hereinafter called "the Board") which also contemplates and outline duties of the Board relating to the repairs and reconstruction of the dilapidated buildings.

(3.) In the year 1969, as per the suggestions of the Bedekar Committee, the Government of Maharashtra had resolved to, undertake the repair and reconstruction/redevelopment, of number of dilapidated buildings and thus enacted the Mumbai Repair and Reconstruction Board Act, 1969 which came into force in 1971. In 1976, the Maharashtra Housing and Area Development Act came into force and in terms of its Chapter-VIII, work of repair and reconstruction of old cess buildings is continued to be carried out. The State having found the slow progress in redevelopment scheme of the dilapidated buildings amended the Development Control Regulations ("DCR" for short), 1991 to encourage the redevelopment of the CESS buildings through private developer/owner/ landlord, with the participation of tenants/occupants under DCR-33(7).