Supreme Court reiterates that a landowner’s preferential right under the Slum Act overrides State acquisition powers, ensuring redevelopment control remains with the lawful property owner.
Case in NewsSupreme Court reaffirms Preferential Right Of Landowner Under Slum Act in Maharashtra redevelopment dispute . |
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Case Overview
Case Name: Jyoti Builders vs. Chief Executive Officer & Ors.
A Bench of the supreme court comprising Justice JB Pardiwala and Justice KV Viswanathan dismissed a plea seeking compulsory acquisition of a 2,005 sq. m plot in Malad, Mumbai reserved as a Recreational Ground . The appellant, Jyoti Builders, sought acquisition under Section 14 of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 based on a 2015 SRA order . However, the land was sold in 2022 to Alchemi Developers, who then submitted their own slum rehabilitation proposal . The central issue concerned the preferential right of landowner to redevelop slum-affected land before the State invokes acquisition powers .
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Key Aspects
Before examining the legal questions, it is essential to understand the dispute’s foundation—two competing rehabilitation proposals and the owner’s statutory priority under the Slum Act :
- Jyoti Builders relied on a 2015 SRA acquisition order for its slum rehab scheme .
- Landowner sold the plot to Alchemi Developers in 2022, who filed a fresh SR Scheme .
- Appellant argued the 2015 order was final and the new sale illegal .
- Core issue: Can State be compelled to acquire land despite the preferential right of landowner?
Legal Insights
The Court clarified the statutory limits of compulsory acquisition under the Slum Act :
- Section 14, Slum Act, 1971: State’s acquisition power subject to owner’s preferential right .
- Section 3D(c)(i), Slum Act: Owner’s priority in redevelopment must be respected .
- Court relied on Tarabai Nagar Co-op Housing Society vs. State of Maharashtra affirming owner’s primacy .
Court’s Verdict
The supreme court upheld the High Court’s dismissal, ruling that acquisition cannot proceed while the preferential right of landowner remains active . It prohibited any construction on the plot, directing that the land be used solely as a Recreational Ground .
Source – Supreme Court of India
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