HC warning to Mumbai developer for transit rent: Court says it will look into the issue of eligibility of tenants

The Bombay High Court on Monday gave an ultimatum to a developer to deposit arrears of transit rent of Rs11 crore and warned him that he will be sent straight to jail from the court if he fails to deposit the same. 

“If he (developer) comes to court tomorrow, see that he comes with his toothbrush. From here he will go straight to jail… Taloja… Arthur Road,” said a division bench of Justices Gautam Patel and Neela Gokhale on Wednesday. 

The HC, last month, while directing two developers to pay transit arrears of Rs11 crore to a suburban Slum Rehabilitation Authority (SRA) project, had observed that the city is not for developers and the SRA Act is intended to serve the purpose of public welfare and not the developers. The HC had asked the co-developers, Afcons Developers Ltd and Ameya Housing Private Ltd to clear the transit arrears by March 3.

The HC was hearing a petition filed by Shree Sai Pawan SRA CHS Ltd, claiming that the developers appointed for redevelopment of their society had not paid them transit rent since 2019. 

During the hearing on Wednesday, advocate MM Vashi, appearing for one of the developers, sought some more time to deposit the amount. He then said that Rs4 crore will be deposited on March 10. 

The judges have asked to deposit the amount with the court in view of the issue raised by the developer regarding eligibility of tenants. Asking the developers to deposit the initial amount, justice Patel said: “Everything else will be taken care of… It is the slumlords who are making money and the SRA has very little control.”

To this apprehension, Justice Patel said, “We will get into it, examine it and set up, with the help of an SRA officer, a schedule where every one of these persons will be verified.”

According to the petition filed by the society, Afcons Developers Ltd and Ameya Housing Private Ltd, were appointed as co-developers of the SRA project at Jogeshwari in suburban Mumbai. More than 300 people, who were found to be eligible to get flats in the project, have not been getting any transit rent since 2019. Of these, 17 were not paid transit rent as they were put up in transit accommodations, however, these houses too were in a dilapidated condition.

The court had observed in its February order that the two co-developers are locked in a never-ending arbitration and there is no work being done at the site. It further added that if they were serious about this project, they will bring the entire amount of transit rent due to those entitled to transit rent from 2019.