Bombay High Court Imposes ₹1 Lakh Cost On Slum Developer For Unauthorized Allotment Of Rehab Tenement Bypassing Lottery-Based Allocation Process

Justice Sandeep V Marne directed the allottees Gopal and Shekhar Vanave to vacate the tenement and dismissed their writ petition against SRA's declaration that the allotment of the tenement to them was invalid observing –

“I am aware of the fact that Petitioners will have to suffer on account of mistakes and illegalities committed on the part of Respondent No. 6-developer. However mere allotment and occupation of tenement No. D-1508 by Petitioners for sometime cannot be a ground to legitimate unauthorized allotment. It must be borne in mind that Respondent No. 4 is made to suffer for the last one and half years as she is unable to take possession of the tenement allotted to her…For inconvenience and loss suffered by Petitioners on account of vacation of tenement No. D-1508, Respondent No.6-developer is required to be saddled with exemplary costs for unauthorized allotment made by it to Petitioners.”

The case revolves around a Slum Rehabilitation Scheme undertaken by the SRA in Kurla, Mumbai. After 438 eligible slum dwellers were accommodated in the rehab building, the developer had four vacant rehab tenements, and 21 eligible slum dwellers were waiting for allotment. The petitioner, despite being eligible, was excluded from the allotment process of a rehab tenement.

On July 21, 2021, the developer submitted a proposal to the Assistant Registrar of Co-operative Societies (SRA), stating that rehab tenement no. D-1508 was available for allotment, and the petitioners were eligible for it. The developer requested the Assistant Registrar to appoint an officer for the lottery-based allotment of the tenement. However, no decision was made on this proposal.

During the pendency of the proposal, on March 1, 2022, the developer wrote to the Assistant Registrar, stating that four rehab tenements were reserved for specific eligible slum dwellers, including one Sangita Balu Zimal. The developer assured that after re-verification, the four reserved tenements would be allotted to these individuals. Despite this assurance and with no decision taken by the Assistant Registrar on the earlier proposal, the developer allocated tenement D-1508 to the petitioners, and notified the Assistant Registrar on March 24, 2022.

On March 28, 2022, the Assistant Registrar declared that the developer's allotment of tenement D-1508 to the petitioner was invalid. Subsequently, the Assistant Registrar conducted a lottery on June 24, 2022, and allotted tenement No. D-1508 to Sangita Balu Zimal.

The Tehsildar (SRA) on October 13, 2022, directed the petitioners to vacate the tenement. The Assistant Registrar in an application by the petitioners on November 18, 2022, upheld the allotment of tenement No. D-1508 to Sangita Balu Zimal and declared the developer's allotment to the petitioner as invalid. The petitioner's appeal to the AGRC was rejected on December 19, 2022. Thus, they filed the present writ petition challenging the orders which upheld the validity of allotment to Sangita Balu Zimal, and deemed the direct allotment by the developer to the petitioners as invalid.

The petitioners cited the developer's proposal in July 2021 and the failure of the Assistant Registrar to act on it and contended that they have been residing in the tenement since March 2022, and eviction would be arbitrary.

SRA supported the Assistant Registrar's decision and suggested alternative PAP tenements for the petitioners.

The court noted that the Letter of Intent (LoI) issued to the developer specifies that the allotment of rehab tenements should be conducted through a lottery system in the presence of a representative of the Assistant Registrar. The court opined that the developer's proposal in 2021 seeking lottery-based allotment indicated that it was aware of its lack of authority. The developer, nonetheless, unilaterally granted possession of tenement D-1508 to the petitioners, the court noted.

Sangita Zimal had been included in the reserved list for tenements in the letter dated March 1, 2022, and the developer “clandestinely” allotted tenement No. D-1508 to the petitioners despite this reservation, the court said.

“In my view, such action on the part of Respondent No.6-developer is totally illegal and ab initio void. The Assistant Registrar has rightly treated such allotment to be invalid. It has no existence in the eyes of the law”, the court held.

The court upheld the orders of the Assistant Registrar, Tehsildar, and AGRC, affirming the validity of the allotment to Sangita Zimal and directed the petitioners to vacate the tenement within four weeks and hand over possession to the Estate Officer of SRA. The court also directed the petitioners to choose another PAP tenement offered by the SRA.

Case no. – Writ Petition (L) No. 40285 of 2022

Case Title – Gopal Dinkar Vanave and Anr. v. Apex Grievance Redressal Committee, Slum Rehabilitation Authority and Ors.