Bombay HC Upholds BMC’s Preferential Right Over Its Land, Backs Cancellation Of Malad Slum Redevelopment Project

Mumbai, Feb 13: The Brihanmumbai Municipal Corporation (BMC) has a preferential right to develop its own land, the Bombay High Court held while dismissing a petition challenging the civic body’s decision to cancel a slum rehabilitation project in Malad East after finding non-compliance by the developer.

A bench of Justices Girish Kulkarni and Aarti Sathe, on Wednesday, dismissed a petition filed by Om Vishwashanti CHS (proposed) and developer Okhawala Shelter, Builders & Developers challenging a January 10, 2024 order cancelling a no-objection certificate (NOC) earlier granted for the project. The bench held that the cancellation was lawful and based on clear non-compliance.

Project on BMC-owned reserved land

The redevelopment concerned BMC-owned land, portions of which are reserved for a municipal ward office, disaster management facilities and a municipal chowky. The developer was required to incorporate these amenities into its plan and obtain approvals from civic authorities.

An NOC was issued in December 2021, followed by a Letter of Intent (LOI) from the Slum Rehabilitation Authority (SRA) in November 2022. The BMC later issued a show cause notice alleging that the developer had failed to submit feasible plans or secure departmental clearances despite repeated opportunities. The NOC was subsequently cancelled in January 2024.

Second round of litigation

This is the second round of litigation after the Supreme Court directed the High Court to rehear the matter following an earlier dismissal on technical grounds.

BMC cites non-compliance, public interest

BMC counsels Joel Carlos and Pushpa Yadav argued that as landowner, the corporation retains the authority to grant or revoke permissions when conditions are breached. The NOC and LOI, it said, explicitly required the developer to obtain approvals and provide workable plans for the reserved public facilities.

According to the civic body, the developer took virtually no effective steps for over a year after the LOI was issued, justifying cancellation in public interest.

The SRA, through advocate Jagdish Aradwad (Reddy), supported this position, noting its own decision to cancel the LOI after finding prolonged non-compliance.

Court upholds civic body’s preferential rights

Agreeing with the civic body, the bench said the cancellation order was well reasoned.

“The conduct of the Petitioners… smacks of non-compliant behavior” in meeting the NOC and LOI conditions, the court observed.

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Emphasising ownership rights, the judges held: “It is the MCGM/BMC’s land… therefore the right of the owner… is a preferential right which needs to be of paramount importance, especially in a S.R. Scheme.” A developer’s rights, the court said, are purely contractual.

Petition dismissed

The court dismissed the petition and upheld the cancellation.

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