The Bombay High Court has upheld the decision of the Brihanmumbai Municipal Corporation (BMC) to cancel a No Objection Certificate (NOC) issued for a slum rehabilitation project in Malad East, ruling that the civic body, as the landowner, holds preferential rights in redevelopment matters.
In 2016, the Slum Rehabilitation Authority (SRA) awarded the redevelopment contract to Okhawala Shelter, Builders and Developers. The land earmarked for the project belonged to the BMC and was reportedly reserved for a municipal ward office, disaster management facilities, and a municipal chowky. The SRA required the developer to obtain an NOC from the BMC before proceeding.
On December 31, 2021, the BMC granted conditional approval, requiring the developer to construct and hand over civic amenities, including a municipal office, disaster management facility, municipal chowky, and a 4,705 sq.m building. Following approval of the plans, the rehabilitation scheme commenced. By February 2022, 79 slum residents were declared eligible for rehabilitation, while 34 were deemed ineligible.
However, when revised building plans were submitted in January 2023, the BMC found that its stipulated conditions had not been met. Despite multiple meetings, the civic body stated that no satisfactory revised proposal was submitted for over a year. The developer approached the High Court, which in 2023 sought an explanation as to why the NOC should not be withdrawn. Subsequently, the BMC cancelled the NOC, stating it would undertake the construction itself and refund premiums and costs paid by the developer.
A division bench of Justices GS Kulkarni and Aarti Sathe found the cancellation justified. “This, to our mind, shows the lackadaisical attitude on the part of the developer and therefore it would not lie in their mouth now to contend that they have complied with all the conditions of the NOC”, the court said.
The bench further observed, “We have no hesitation in holding that the developer had miserably failed to comply with the conditions of the NOC and the Letter of Intent (LOI). The cancellation is based on the correct findings, which are borne out by the record”, affirming there was no reason to interfere with the BMC’s order.
Source: Hindustan Times
