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Mumbai: This city is not for developers, and slum rehabilitation act (SRA) aims to serve the purpose of public welfare and not the developers Bombay High Court Said, directed two developers to pay transit dues of Rs 11 crore for a suburban SRA project.
A division bench of Justice Gautam Patel and Justice Neela Gokhale made the observation on Monday while hearing a petition filed by Shree Sai Pawan SRA CHS Ltd, which claimed that the two developers appointed for the redevelopment of their society have denied them transit rights since 2019. Rent was not paid.
Afcons Developers Ltd. and Ameya Awas Private Limited was appointed as the co-developers of the slum rehabilitation project at Jogeshwari in suburban Mumbai.
Over 300 people who are eligible to get flats in the project are not getting any transit fare since 2019. Of the 300, 17 were housed in transit housing and therefore were not receiving transit fare, but these homes were also in a dilapidated condition.
The remaining 230 persons have not received any transit fare since 2019 and have been left to fend for themselves. The court noted that the two co-developers are locked in a never-ending arbitration and no work is being done at the site.
“This city is not for developers. The Slum Rehabilitation Act is not for developers. The purpose of the Act is to serve the public welfare purpose. Developers are a means to that end,” it observed.
The court further said that developers are entitled to a free sale component provided by the incentive floor space index (FSI), but this is a consideration for meeting their obligations under the contract.
“Those obligations include not only the reconstruction or construction of resettlement structures, both commercial and residential, but also the payment of transit fares or providing livable transit housing,” it said.
A developer, who does not pay transit rent, does not provide livable transit accommodation or is otherwise in default of its obligations, all of which have to be done within a time frame and within a time limit, is not entitled to any benefit. Not entitled to slum rehabilitation project, i.e. free sale component, the court said.
Privileges or entitlements can be withdrawn if the developers have demonstrated default.
“The defaulting party cannot be allowed to take advantage of its mistake and failure. This would be profiteering and that too at public expense as many of these slum projects are on public land – like this one – and the developer has not going.” made to pay the cost of the land,” the bench said.
The court also warned against terminating the developers’ contract and appointing a new one, noting that “the developer can always be changed, but not the beneficiaries of the SRA project”.
If the two co-developers are serious about the project and want to continue with their rights, they will have to demonstrate their bona fide and clear the dues of transit rent of about Rs 11 crore to the petitioner society by March 3.
Posting the matter for further hearing on March 3, the court said, “They (developers) must prove their integrity. To seek equity, they must commit equity.”
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