The Bombay High Court (HC) has imposed a fine of INR 5 lakh on the developer for "deliberately" postponing the implementation of a slum redevelopment program for over five decades (56 years). The developer, Lashkaria Housing & Infrastructure, was removed, and the high court ruled that the company must reimburse Tata Memorial Hospital for the expenses within eight weeks.
The developer attempted to portray himself as appointed to implement the Slum Rehabilitation Scheme (SRS) on three adjacent plots for 432 hutments, but in reality, the developer was only chosen to reconstruct one plot of land that housed 120 hutments. This was something the court had an issue with. The court's time was wasted since it had to perform a "microscopic inquiry" to ascertain which plot was given to the developer for reconstruction.
While hearing the case on May 10, Justice Sandeep Marne said that the court has conducted an inquiry and found that the petitioner's representation before it that it has been assigned a slum scheme for the rehabilitation of all three portions of land comprising 432 structures is false, in addition to the petitioner's conduct in failing to make any progress in the implementation of the slum scheme for five or six years. As a result, a significant amount of priceless court time was wasted.
The court was considering a petition submitted by Lakharia, which contested the April 8 ruling of the Apex Grievance Redressal Committee, which upheld the CEO of SRA's order terminating its appointment. The August 2023 order came from the CEO.
The 120 structures of Sarvodaya Residence SRA CHS (planned) were to be redeveloped by Lashkaria, following the departure of the previous developer, Hridaya Construction, in a proposal submitted in June 2018. But when the developer refused to go forward, Sarvodaya went to the CRO, SRA, in August 2022, asking for Lashkaria to be removed.
Hridaya was awarded the project, which at first covered 6,300 square metres and entailed the reconstruction of 432 buildings.
Mayur Khandeparkar, the Lashkaria lawyer, denied that the project was being delayed, noting that the reconstruction plan for 432 buildings was authorised in July 2021. The developer was unable to move forward with renovation due to MHADA's delay in determining the eligibility of those living in poverty.
SRA counsel Jagdish Reddy, however, contended that just 120 structures could be redeveloped in Lashkariya. Reddy's allegations were also supported by society advocate Cherag Balsara, who said that the developer was purposefully holding up the SRS until he received permission to redevelop the other two properties.
Judge Marne pointed out that while Lashkaria was only appointed to redevelop 120 structures, the original developer, Hridaya, was appointed to redevelop a larger section of three plots containing 432 structures.
Judge Marne dismissed the petition by saying that it appears to be more interested in broadening the scope of its appointment by gaining rights in relation to the first and third portions of the land than in focusing on completing the slum scheme of 120 slum structures for which the petitioner is appointed as developer.
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