December 5, 2025: In a significant ruling delivered on 2 December 2025, the Supreme Court declined to issue a mandamus directing the Maharashtra Government to acquire land under Section 14 of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. The Court underscored that acquisition powers cannot be exercised in a manner that overrides the legal rights of the landowner.
A Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan reiterated the settled position that “Any process to acquire the land shall have to be kept in abeyance till such time as the owner’s preferential right to develop it stands extinguished.” The case concerned a 2005 sq. m. plot in Malad, declared a slum in 1987 and later earmarked as a Recreational Ground (RG) in the 1991 Development Plan. Over time, multiple developers attempted rehabilitation on the larger project area, including Jyoti Builders, who entered the scheme after acquiring rights from Vikas Housing.
The SRA deemed 34 slum dwellers on the plot as eligible and allowed their relocation, enabling Jyoti Builders to secure FSI benefits and raise rehabilitation buildings between 2005 and 2011. A 2015 order from the CEO-SRA recommended land acquisition to complete the project and compensate the original owner, Phuldai Yadav. However, acquisition stalled due to a Bombay High Court ban on slum schemes on RG plots, which lasted until March 2022. After the ban was lifted, the land was sold to Alchemi Developers, who submitted a new redevelopment proposal as lawful owners.
When Jyoti Builders moved the High Court to enforce the 2015 order, their plea was rejected—a decision now upheld by the Supreme Court. Citing precedents such as Tarabai Nagar Co-op. Housing Society v. State of Maharashtra and Saldanha Real Estate Pvt. Ltd. v. Bishop John Rodrigues, the Court held that acquisition cannot proceed while the owner’s preferential redevelopment right remains intact.
The Bench also criticised Jyoti Builders for approaching courts after an “inexplicable delay” and clarified that merely shifting slum dwellers does not establish property rights. It emphasised that “the appellant has been fully compensated by granting adequate area/FSI for sale,” rejecting claims for additional benefits.
Regarding the Occupation Certificate (OC), the Court ruled that Jyoti Builders will receive it only upon handing over the 2700 sq. m. RG plot—“Dark Green Portion”—as originally required. Crucially, the Court held that the disputed 2005 sq. m. plot must remain an RG area, declaring: “We make it abundantly clear that no construction shall be made on the subject property… and the same shall be utilized only as a Recreational Ground (RG).”
The appeal was dismissed, with the Court observing it was “too late in the day” to direct acquisition when the developer had already received benefits, the land had been lawfully sold, and statutory preferential rights favoured the new owner.
Source: Law Chakra
