Bombay High Court Criticizes Maharashtra Government and SRA Over Redevelopment Project Delay

The Bombay High Court has strongly criticized the Maharashtra government and the Slum Rehabilitation Authority (SRA) for their inaction regarding the stalled redevelopment project in Wadala (E). The occupants of the project, who vacated their homes in 2013, have neither received their promised permanent accommodations nor any transit rent, causing significant distress.

Court's Remarks and Orders

In a recent order by Justices Mahesh Sonak and Kamal Khata, the court expressed frustration over the lack of decision-making by the State and SRA. The occupants, part of the Shaikh Misree SRA CHS, had filed a petition against Omkar Realtors and Developers Pvt Ltd, who ceased paying transit rent since 2015/2016 due to financial difficulties. Despite the prolonged delay, the rehabilitation building work has not yet commenced.

During a previous hearing, the court was informed that lender M/s J C Flowers Asset Reconstruction Pvt Ltd had submitted a proposal to take over the project, including Omkar's assets and liabilities. However, the lender’s advocate, Vinod Kothari, clarified that their proposal was solely for changing the developer.

Court's Criticism and Directives

The judges highlighted the plight of the petitioners, who are entitled to transit rent and should not have to struggle to recover their dues. They noted that neither the developer nor the lender is willing to pay the arrears, and the State and SRA have been passive in addressing the issue. The court remarked, "None of the respondents are serious about solving the petitioners’ most genuine problem."

Omkar Realtors had claimed financial incapacity to pay the transit accommodation rent, despite being the appointed developer for the project. The court mandated Omkar to deposit all rent arrears in the High Court by July 24. Failure to comply would result in the personal presence of Omkar's Managing Director in court, along with a detailed affidavit disclosing the company’s assets.

Call for Decisive Action

The judges criticized the SRA and the State government for seeking adjournments and delaying decisions on the proposals by Omkar and the lender, even after six months. They directed both entities to take firm decisions within two weeks to resolve the matter.

The prolonged delay in the redevelopment project has left many occupants in a precarious situation, waiting for their promised accommodations and transit rent. The High Court’s stern directives aim to expedite the decision-making process and provide relief to the affected occupants.