HC Slams Maharashtra Government for “Gross Abuse of Power” in Borivali Slum Rehabilitation Case

Introduction

In a strong indictment of executive overreach, the Bombay High Court has stayed the Maharashtra Housing Department’s decision appointing a new developer for a long-stalled slum rehabilitation project in Borivali East, terming the move a “gross abuse of power” and a clear violation of binding judicial orders. The Court warned that such actions undermine the authority of constitutional courts and render judicial pronouncements meaningless.

The ruling raises serious concerns about rule of law, administrative arbitrariness, and the erosion of housing rights of slum dwellers.

Background of the Borivali Slum Rehabilitation Project

The dispute relates to the redevelopment of slum land occupied by members of Haribar Krupa Co-operative Housing Society Ltd., Borivali East.

Key facts include:

• In 2003, Yash Developers was appointed as the project developer through a development agreement dated 20 August 2003
• Despite nearly 18 years, the project failed to commence
• The land involved is public land owned by the Municipal Corporation, not private property

The prolonged delay left slum residents living in deplorable and unhygienic conditions, contrary to the objectives of slum rehabilitation schemes under Maharashtra law.

Role of Slum Rehabilitation Authority and Grievance Redressal

After repeated complaints by the society:

• The Slum Rehabilitation Authority (SRA) issued a show-cause notice to Yash Developers
• However, proceedings were abruptly dropped on 16 March 2021
• The society challenged this before the Apex Grievance Redressal Committee (AGRC)

On 4 August 2021, the AGRC permitted the society to appoint a new developer, recognising the prolonged failure of Yash Developers.

Subsequently, Opal Builders was appointed, and the Assistant Registrar of Co-operative Societies was duly informed.

Judicial History: High Court and Supreme Court Intervention

Yash Developers challenged the AGRC decision before the Bombay High Court, which dismissed the petition.

The developer then approached the Supreme Court, which on 25 November 2022, directed the parties to maintain status quo.

Despite this clear judicial direction, the State government proceeded with administrative actions that directly impacted the subject matter of the litigation.

State Policy and the Controversial Appointment of Veena Developers

While litigation was pending:

• The Maharashtra Government issued a Resolution dated 25 May 2022 aimed at reviving stalled slum rehabilitation projects
• Thar Commercial Finance Pvt. Ltd. proposed Veena Developers as the new developer
• It was revealed that Yash Developers and Veena Developers had a prior joint venture, including a 2019 mortgage deed

Despite these red flags, the Housing Department, on 14 March 2024, approved Veena Developers for the project.

The society alleged that this move was a deliberate attempt to bypass court orders and reinstate Yash Developers through a proxy.

Observations of the Bombay High Court

A Division Bench comprising Justice G.S. Kulkarni and Justice Aarti Sathe delivered scathing observations.

The Court held that:

• The decision “very seriously shocked the conscience of the Court”
• The case exemplified how judicial orders are “systematically defeated or rendered meaningless”
• The appointment of Veena Developers amounted to a “backdoor entry”, executed in a “clandestine and well-planned manner”

The Bench noted that earlier observations of both the High Court and the Supreme Court had already recorded the complete incapacity of Yash Developers to execute the project.

Abuse of Power and Lack of Jurisdiction

Prima facie, the Court found that:

• The Housing Department had no jurisdiction to appoint or recognise a developer in a manner that circumvented statutory mechanisms
• The order dated 14 March 2024 amounted to a gross abuse of authority
• Administrative action could not override binding judicial orders

The Court stayed the Housing Department’s decision pending final disposal of the petition.

Impact on Slum Dwellers and Right to Shelter

The judgment strongly emphasised the plight of slum residents, observing:

• Developers and financiers had taken slum dwellers to ransom
• Residents were sandwiched between corporate disputes
• Slum dwellers were deprived of their right to dignified shelter for over two decades

The Court underscored that the ultimate victims of bureaucratic apathy and developer collusion were the slum residents themselves.

Role of Municipal Corporation and Public Land

The Court also criticised the Municipal Corporation, noting that:

• The land involved was public land
• Authorities appeared “mute spectators” to the suffering of residents
• There was a complete lack of concern for ground realities

This failure raised questions about public trust doctrine and the obligations of state authorities over public resources.

Statutory Framework Involved

Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971

Governs slum rehabilitation schemes and vests powers in statutory authorities, not executive fiat.

Development Control and Promotion Regulations (DCPR), Mumbai

Prescribes procedures for appointment and replacement of developers in SRA projects.

Co-operative Societies Act, 1960

Recognises the autonomy of housing societies in redevelopment decisions.

Constitutional Provisions Implicated

Article 14 – Equality Before Law

Arbitrary administrative action violating judicial orders offends Article 14.

Article 21 – Right to Life and Dignified Shelter

Judicially expanded to include the right to adequate housing and humane living conditions.

Article 226 – Power of Judicial Review

Empowers High Courts to strike down executive actions that abuse power or violate the law.

Relevant Judicial Precedents

• Manohar Lal Sharma v. Principal Secretary (2014) – Executive actions cannot override judicial directions
• State of Punjab v. Gurdev Singh (1991) – Orders passed without jurisdiction are nullities
• Chameli Singh v. State of UP (1996) – Right to shelter forms part of Article 21
• K.K. Baskaran v. State (2011) – Courts must protect slum dwellers from exploitative redevelopment practices

Interim Relief and Future Proceedings

The Bombay High Court:

• Stayed the March 2024 Housing Department order
• Fixed the matter for final hearing on 24 February

The case will likely serve as a critical test of executive accountability in urban redevelopment governance.

Conclusion

The Borivali slum rehabilitation case exposes a troubling pattern of bureaucratic defiance of judicial authority, prolonged developer non-performance, and institutional apathy toward slum dwellers.

The Bombay High Court’s intervention reasserts a foundational constitutional principle:
Executive convenience cannot trump judicial supremacy or the basic rights of citizens.

Location: Pune, Maharashtra, India

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