Private agreements cannot be enforced over public policy in slum rehabilitation schemes: Supreme Court

February 16, 2024by Primelegal Team0

Case title: Sayunkta Sangarsh Samiti & Anr. Vs The State Of Maharashtra & Ors.

Case no.: Civil Appeal No. 1359 Of 2023

Decided on: 15.12.2023

Quorum: Hon’ble Justice Abhay S. Oka, Hon’ble Justice Pankaj Mithal

 

FACTS OF THE CASE:

The dispute arose when a developer attempted to avoid legal requirements by excluding the SRA from a lawsuit and entering into a private agreement with a minority resident group for specific towers. This private agreement, deemed invalid by the SRA, attempted to circumvent the established lottery-based system for flat allocation.

The appellants before this Court have challenged the High Court of Judicature, Bombay’s order dated 22.10.2021, which dismissed the appellants’ Writ Petition. The petition sought to overturn respondent No. 2’s order, issued by the Slum Rehabilitation Authority.

APPELLANTS CONTENTION:

The appellant’s argued that once the Developer and the appellant society reached an agreement under the MOU, allotments of flats in towers D, E, and F should have been made accordingly, with only appellant society members receiving these flats.

COURT ANALYSIS AND JUDGEMENT:

The Court noted that the Lower Parel project was hampered by an internal conflict between the majority Federation in charge of it and a dissenting minority group, Sayunkta Sangharsh Samiti. It was determined that the developer had broken the law when they entered into a private agreement with SSS for a specific tower development and excluded the SRA from a lawsuit. This private agreement went against the SRA’s established lottery-based allocation system, which Circular mandated. In the end, the Court affirmed the SRA’s determination to equitably distribute apartments to all qualified inhabitants, stressing the importance of openness, due process, and broad agreement in slum rehabilitation initiatives.

It held that SRA must operate in accordance with its own policies and guidelines, refraining from granting contractual or private interests the upper hand over public policy, particularly when it comes to welfare-based policies.

 

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Written by – Surya Venkata Sujith

Click here to read the judgement

Primelegal Team

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