Bombay HC Asks MHADA To Pay ₹36 Lakh For Acquiring Dharavi Land In 1988, Not Paying Compensation

Bombay HC Asks MHADA To Pay ₹36 Lakh For Acquiring Dharavi Land In 1988, Not Paying Compensation

The court, noting the government's "callousness," decided not to reverse the 1989 acquisition or restore the property but mandated compensation due to the delay.

Urvi MahajaniUpdated: Sunday, August 04, 2024, 02:59 AM IST
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MHADA | File Photo

Coming down heavily on the MHADA for its “callous and insensitive” approach towards awarding compensation to a man whose  979 sq mt of land in Dharavi was acquired 36 years back, the Bombay High COurt has directed the housing authority to pay Rs 31 lakh towards as interim compensation and costs. Interestingly, the authorities gave an excuse of “misplaced case papers” for failing to decide the compensation amount. 

The court has determined interim compensation towards land acquisition at Rs25 lakh, till the time the Land Acquisition Officer (LAO) determines the total amount. The LAO has been directed to complete the exercise in six months. The amount has to be paid within 15 days by Bombay Housing And Area Development Authority, Maharashtra Housing And Area Development Authority (MHADA), Special Land Acquisition Officer (SLAO) and Maharashtra Housing And Area Development Board. 

In addition, the HC has directed the authorities to pay Rs5 lakh, within 15 days, for violating the petitioner's Constitutional and Human rights. Also, MHADA has been directed to pay Rs1 lakh cost within 15 days. 

The court has directed the SLAO to hold an inquiry and determine compensation amount within six months, in accordance with law. In case an appeal is filed against the award, then the appellate authority has been directed to decide the same within four months. 

The HC disposed of the petition filed by Yusuf Kantharia seeking direction to the authorities to award compensation for acquiring his land in 1988. In the alternative, he had sought restoration of possession of his land. 

According to Kantharia, MHADA acquired his land by an order dated July 14, 1988 and the physical possession was taken in 1989. Hence he approached the HC in 2003.

However, till date he has not been paid any compensation, said his advocate Omprakash Pandey. 

The HC, in August 2003, expressed distress over the MHADA’s approach noting there was no justification in its submission that the “original records of the acquisition are not traceable”. MHADA had then assured the HC that SLAO that it will decide on the compensation as per law within six weeks. 

When the petition came up for final hearing two weeks back, the HC noted that unfortunately, though 36 years have passed since Kanthaira’s land was acquired, neither have the records been traced, nor is the exercise of determining and paying compensation completed. 

“This is quite callous and insensitive, apart from the same violating Articles 14, 21 and 300-A of the Constitution… There is not even a shred of justification for this inordinate and unexplained delay in paying compensation to the Petitioner for the past 36 years,” a bench of Justices MS Sonak and Kamal Khata observed on August 1. 

“Such conduct on the Respondent’s part amounts to virtual expropriation of a citizen’s property without the authority of law and without paying any compensation,” the bench added. 

MHADA’s advocate PG Lad submitted that it will determine the award in a time-bound manner. 

The court said thought this is a case of “callousness” on the part of the Government and MHADA, “considering the larger public interest involved, we are not inclined to interfere with the acquisition finalised in 1989 or direct the restoration of possession of the acquired property to the Petitioner”. Further, it is not feasible to direct restore land’s possession as it would have been utilised for the purpose for which it was acquired. 

“The right to receive compensation towards the compulsory acquisition of the Petitioner’s property cannot be defeated based on the insensitive excuse about misplaced case papers,” the court emphasised. Despite MHADA being given more than sufficient time, it has not bothered to trace the records. 

Hence, the court directed the authorities to pay compensation and cost to Kantharia till the time the award is determined observing that there has been “gross, inordinate, and unexplained delay”. 

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