Mumbai Slum Rehabilitation Delays Under Scrutiny: Supreme Court Emphasizes Accountability & Calls for Statutory Review.

The Supreme Court of India, in the case of Yash Developers v. Harihar Krupa Co-operative Housing Society Limited & Ors., addressed the issue of prolonged delays in slum rehabilitation projects in Mumbai under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. The court emphasized the statutory duty of authorities to ensure timely project completion and the accountability of officials for delays.

The Apex court, reflecting upon the pervasive issue of delays in slum rehabilitation projects, highlighted the exasperation of the Bombay High Court in M/s. Galaxy Enterprises v. State of Maharashtra stating, "…Nonetheless, considering the volumes of disputes still reaching the Courts, it can certainly be said that time is ripe, if not too late, to ponder, whether things are realistically working in the right direction, to eradicate slums and rehabilitate the slum dwellers, with the desired efficacy and expedition…"

Scope of Judicial Review against an order under Section 13 of the Act:
While determining the scope of judicial review the Court has stated that the Bombay High Court consistently rules that developers must complete projects on time and that the Slum Rehabilitation Authority (SRA) has a duty to ensure timely completion. Despite these rulings, compliance is lacking as neither developers nor the authority face consequences for delays. Judicial review remains ineffective without accountability.

Accountability of officers exercising power coupled with duty under Section 13:
Section 13(2) of the Act grants the SRA the power and duty to ensure timely project completion. The court has relied on the position held in Vijay Rajmohan v. CBI (2023) 1 SCC 329 whereby, the court has held that accountability is a key principle of administrative law and human rights, ensuring duty bearers are responsible, answerable, and enforceable for their actions. It enables corrective and preventive measures against dereliction of duty, promoting transparency and improvement in governance.

The court upheld the termination of the development agreement with Yash Developers, citing their failure to fulfill their obligations within a reasonable timeframe. It underscored the inadequacy of merely recognizing the statutory duty of authorities like the Slum Rehabilitation Authority (SRA) to ensure timely project completion. The court stressed the need for accountability, stating that: "Until and unless duty is identified with accountability, judicial review is ineffective."

While upholding the termination, the Supreme Court expressed concerns over the SRA's inaction in ensuring the project's timely execution, highlighting the plight of slum dwellers awaiting rehabilitation. The court also noted that Yash Developer's reliance on agreements with third parties for financial and technical assistance raised serious doubts about their capacity to execute the project effectively. The court quoted the High Court's observation: "…The present case is a classic case of how the petitioner is running helter-skelter to secure finance, that too without taking the society into confidence much less the authorities. This on the basis of a solitary clause in the Development Agreement which is being discussed hereafter.”

Recognizing the systemic issues plaguing the implementation of the Maharashtra Slum Areas Act 1971, the court highlighted the need for a thorough review of the legislation. Drawing upon its observations of numerous cases and the Bombay High Court's concerns, the Supreme Court identified several problematic aspects, including: the process of declaring an area as a slum, the identification of eligible slum dwellers, the selection of developers, the allocation of land for redevelopment and sale, the provision of transit accommodation, and the effectiveness of statutory remedies.

In response to these concerns, the court, exercising its facilitative role in ensuring access to justice, requested the Chief Justice of the Bombay High Court to initiate a review of the Maharashtra Slum Areas Act, 1971. The court urged a comprehensive examination of the Act's functioning, involving all stakeholders, including the government, statutory authorities, slum dwellers, and legal experts.

Between: Yash Developers V. Harihar Krupa Co-Operative Housing Society Limited & Ors.
Coram: Justice Pamidighantam Sri Narasimha
DOJ: 30.07.2024