October 15, 2025: The Bombay High Court has set aside the acquisition of land owned by NESCO Limited in Goregaon (East) by the Slum Rehabilitation Authority (SRA), ruling that the process violated due procedure under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971.
A division bench of Justices G.S. Kulkarni and Aarti A. Sathe observed that the SRA had taken over the land in 2016 without allowing NESCO to propose a redevelopment scheme. The judges held that the authorities failed to acknowledge the “preferential right” of the landowner to redevelop their own property — a right protected under Article 300A of the Constitution.
The court noted that the state and SRA had “discarded the legal rights of a private landlord” and invoked the “draconian powers” of Section 14 of the Slum Act “mechanically and at the behest of unscrupulous elements.”
The dispute dates back to April 2016, when the SRA issued a notification to acquire two adjoining NESCO plots in Ram Nagar, Goregaon (East), which were occupied by slum dwellers. NESCO challenged the move, stating that it was denied proper hearings, was not served with show cause notices, and was offered inadequate compensation of Rs 12 lakh.
In a rare development, the slum dwellers’ society supported NESCO’s stand, accusing their previous developer, N Rose Developers, of misleading them. In April 2025, they resolved to terminate the developer and collaborate with NESCO and its associate, Gyan Buildtech Pvt. Ltd.
Citing misuse of authority, the bench quashed the 2016 acquisition notification, the 2017 compensation award, and all related notices, warning that “such powers can never be exercised at the behest of unscrupulous elements and discarding the legal rights of private landlords.”
Source: Hindustan Times
