August 23, 2025: The Supreme Court on Friday upheld a 2018 Bombay High Court ruling that struck down the Maharashtra government’s acquisition of land in Kurla for a slum rehabilitation project. A bench of Justices Surya Kant and N. K. Singh ruled that landowners have a preferential right to redevelop their property under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971.
With this decision, the top court dismissed appeals filed by the state government, the Slum Rehabilitation Authority (SRA), and the Tarabai Nagar Co-operative Housing Society. “The impugned judgement of the high court stands upheld,” the bench stated, adding, “The status quo directed vide order dated 27.01.2017 is, consequently, vacated.”
The bench permitted landowner Indian Cork Mills Pvt. Ltd. (ICM) to submit a fresh slum redevelopment scheme within 120 days, factoring in amendments made to the regulations while the matter was under litigation. The SRA and state authorities were directed to process ICM’s proposal “as expeditiously” as possible, and no later than 60 days from submission.
The case pertains to a 9,054 sq. m. plot in Kurla’s Tungwa village, portions of which were declared slum areas in 1979. Over time, residents formed the Tarabai Nagar Co-operative Housing Society, seeking state acquisition of the land for rehabilitation. However, in 2018, the Bombay High Court ruled that ICM retained the first right to redevelop its land.
“We are pained to observe that the Slum Act’s framework for rehabilitation is poorly structured,” the verdict noted, pointing to legislative ambiguities. Still, it clarified that the state could not proceed with the acquisition if the landowner was willing to redevelop. “Any process to acquire the land shall have to be kept in abeyance till the owner’s preferential right to develop it stands extinguished,” the court held.
Source: The Week
