Introduction
The Bombay High Court recently initiated a comprehensive review of the Maharashtra Slum Areas (Improvement, Clearance, and Redevelopment) Act, 1971. Unlike traditional judicial reviews that primarily focus on constitutional validity, this review aims to identify gaps and inefficiencies within the Act.
The review was directed by a Supreme Court Bench consisting of Justices P.S. Narasimha and Aravind Kumar in July 2023. This examination seeks to address long-standing concerns related to delays, inefficiencies, and fundamental rights violations of slum dwellers under the Act.
Why in News?
- The Bombay High Court is conducting a first-of-its-kind review of the Maharashtra Slum Areas Act, 1971, aimed at identifying gaps rather than just assessing its constitutional validity.
- The Supreme Court has emphasized the public interest aspect of slum rehabilitation and the need for transparency in redevelopment projects.
- The review stems from concerns over “unconscionable delays” in slum redevelopment projects, affecting slum dwellers’ right to housing and dignity.
- A Supreme Court ruling highlighted 1,612 pending cases related to slum redevelopment before the Bombay HC, including 135 cases that have been unresolved for over a decade.
Key Provisions of the Maharashtra Slum Areas Act, 1971
- The Act allows the Maharashtra government to declare certain lands as “slum areas” and acquire them if needed for redevelopment.
- The Slum Rehabilitation Authority (SRA) is responsible for overseeing slum redevelopment, ensuring that projects are executed fairly and efficiently.
- The Slum Rehabilitation Scheme (SRS) was introduced in 1995 to involve private developers in providing permanent housing for slum dwellers.
- Developers receive incentives, such as increased Floor Space Index (FSI) and other benefits, for undertaking slum redevelopment.
The Yash Developers’ Case: Triggering Judicial Review
- The case involves a 2003 slum redevelopment project in Borivali, initially allotted to Yash Developers.
- In 2021, the Apex Grievance Redressal Committee (AGRC) of the SRA terminated Yash Developers’ contract and reassigned the project to another developer.
- Yash Developers challenged this decision in the Bombay High Court, arguing that slum dwellers had been waiting for years without receiving proper housing.
- The Bombay HC ruled against Yash Developers in 2022, stating that the project delays violated the fundamental rights of slum dwellers.
- The case was then escalated to the Supreme Court, where it was highlighted that judicial interventions had failed to resolve inefficiencies within the SRA and developer system.
- This led the SC to order a systematic review of the Maharashtra Slums Act to assess its implementation flaws.
Supreme Court’s Landmark Observations on Slum Redevelopment
- Slum rehabilitation cannot be treated as a profit-driven real estate project but must prioritize public interest and social welfare.
- The judiciary can now review laws without a specific legal dispute, setting a precedent for proactive judicial oversight.
- The Supreme Court directed the Bombay HC to analyze the performance of the Maharashtra Slum Areas Act, 1971, and suggest improvements.
Six Key Areas Identified for Review
1. Identification and Declaration of Land as Slum
- The SC highlighted concerns over arbitrary interference by developers and builders in the designation of slum areas.
- There is a lack of transparency in how certain lands are declared slums, impacting residents’ rights.
2. Identification of Slum Dwellers
- Determining who qualifies as a legitimate slum dweller has been a complex and controversial process.
- Fraudulent claims and exclusion of genuine slum residents have led to multiple legal battles.
3. Selection of a Developer
- The law allows slum dwellers’ cooperative societies to select developers, but this process is often manipulated by rival developers.
- The SC observed that lack of transparency in the selection process leads to corruption and delays.
4. Apportionment of Land for Redevelopment and Sale
- Developers aim to maximize the saleable portion of redeveloped land, which is owned by slum dwellers.
- The SC raised concerns over whether slum dwellers receive a fair share of land after redevelopment.
5. Obligation to Provide Transit Accommodation
- Slum dwellers are often reluctant to vacate their homes due to the unreliable nature of transit accommodations provided by developers.
- The SC noted instances where transit housing was never built or was of unlivable quality, forcing residents to remain in limbo.
6. Lack of Independence in Decision-Making
- The SC found that the Slum Rehabilitation Authority (SRA) lacked autonomy and was influenced by external factors, such as political and business interests.
- There is a need for independent oversight to ensure fair decision-making.
Supreme Court’s Directives for Future Action
- The Bombay High Court Chief Justice has been directed to set up a special Bench to initiate suo motu proceedings for reviewing the Act.
- The State Government may be directed to constitute a committee for a performance audit of the Maharashtra Slums Act.
- The next hearing on this issue is scheduled for March 18, 2025.
Key Legal and Economic Terms Explained
Judicial Review
The power of the judiciary to assess laws, regulations, or government actions for constitutional validity and fairness.
Slum Rehabilitation Authority (SRA)
A government body responsible for overseeing slum redevelopment projects, ensuring legal compliance, transparency, and fair treatment of slum dwellers.
Transit Accommodation
Temporary housing provided to slum dwellers while redevelopment projects are being completed. Poor implementation often leads to slum dwellers being stranded in transit housing indefinitely.
Floor Space Index (FSI)
A metric that determines the maximum allowable construction on a piece of land. Developers receive higher FSI as incentives for undertaking slum redevelopment projects.
Suo Motu Proceedings
Legal action initiated by a court on its own motion without any party filing a petition. Used when the court identifies a matter of public interest requiring judicial intervention.
Conclusion
The Supreme Court’s intervention in the Maharashtra Slum Areas Act, 1971 is an unprecedented move in Indian legal history. By ordering a performance review of the Act, the judiciary aims to rectify inefficiencies and ensure the protection of slum dwellers’ rights.
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