The Supreme Court of India recently delivered a significant judgment in the case of Yash Developers v. Harihar Krupa Co-operative Housing Society Limited & Ors., Civil Appeal No. 8127 of 2024, arising out of SLP (C) No. 20844 of 2022. The case revolved around the prolonged delay in the execution of a slum rehabilitation project in Borivali, Mumbai, under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971.
Key Legal Issues
1. Delay in Project Execution: The primary issue was the inordinate delay of over 16 years in completing the slum rehabilitation project.
2. Scope of Judicial Review: The court examined the limited scope of judicial review under Article 226 of the Constitution against the decision of the statutory authority, the Apex Grievance Redressal Committee (AGRC).
3. Accountability of Developers and Authorities: The court scrutinized the responsibilities and accountability of both the developer and the Slum Rehabilitation Authority (SRA) in ensuring timely project completion.
Court’s Decision
The Supreme Court upheld the termination of Yash Developers’ agreement by the AGRC, citing the developer’s failure to complete the project within the stipulated time. The judgment, delivered by Justice Pamidighantam Sri Narasimha and Justice Aravind Kumar, emphasized the public purpose of slum rehabilitation projects and the statutory duty of the SRA to ensure timely completion.
Key Observations
– Public Purpose: The court underscored that slum rehabilitation projects serve a public purpose and are not mere real estate ventures. “Execution of the project under the Slum Rehabilitation Scheme cannot be viewed as a real estate development project. There is a public purpose involved,” the court noted.
– Accountability: The court held that the SRA has a statutory duty to ensure that slum rehabilitation projects are completed within the prescribed time. “We have no hesitation in holding that a writ of mandamus would lie against the concerned authorities if they do not perform the statutory duty of ensuring that the project is completed within the time prescribed,” the court stated.
– Financial and Technical Capacity: The court found that Yash Developers lacked the financial and technical capacity to complete the project, as evidenced by their reliance on third-party financial agreements.
The Supreme Court dismissed the appeal by Yash Developers and imposed costs of Rs. 1,00,000, payable to the Supreme Court Mediation and Conciliation Project Committee. The court also called for a performance audit of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, to address systemic issues in the implementation of slum rehabilitation projects.
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Parties Involved
– Appellant: Yash Developers
– Respondents: Harihar Krupa Co-operative Housing Society Limited and others
– Case Number: Civil Appeal No. 8127 of 2024
Legal Representation
– For the Appellant: Mr. Kapil Sibal, Senior Counsel
– For Respondent No. 6 (Veena Developers): Mr. C A Sundaram, Senior Counsel
– For Respondent Nos. 8-48 (Slum Dwellers): Mr. Huzefa Ahmadi, Senior Counsel
– For the Administrator of Respondent No. 1: Mr. Dhruv Mehta, Senior Counsel
