Mumbai: The Bombay High Court on Tuesday set aside the Maharashtra government’s decision to acquire private land owned by NESCO Limited in Goregaon (East), holding that the move under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, was arbitrary and illegal.
Authorities Ignored Landowner’s Redevelopment Right
A bench of Justices Girish Kulkarni and Aarti Sathe passed the order observing that the authorities had failed to recognise the preferential right of the landowner to redevelop the slum on its own land before proceeding with acquisition under Section 14(1) of the Slum Act.
NESCO Challenged 2016 State Notification
NESCO had challenged the 2016 state notification acquiring its properties measuring about 1,500 sq. metres on the ground that it violated its constitutional right to property under Article 300A.
The company contended that despite being the rightful owner, its proposal to redevelop the slum was ignored, while a society of slum dwellers and a developer (N. Rose Developer) pushed for acquisition without proper notice or hearing.
Improper Service of Notices, Meagre Compensation
According to the petition, the authorities issued show-cause notices in 2009 and 2013 but never served them properly. The land was later declared a slum area and acquired by the state in 2016, following which compensation of only Rs 12 lakh was awarded.
Supreme Court Precedents Cited
During the hearing, senior advocate Aspi Chinoy, appearing for NESCO, cited recent Supreme Court rulings which upheld the principle that a private landowner has a preferential right to redevelop slum land before any acquisition can be undertaken.
Slum Society Withdraws Support for Developer
In a significant turn, the proposed slum society, Shivshardha Co-operative Housing Society, filed an affidavit admitting that its earlier acquisition request was made under the influence of the developer and that it had now resolved to support NESCO in redeveloping the property.
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Court Warns Against Misuse of Powers
Allowing the petition, the bench quashed the acquisition and strongly reminded state officials of their “responsibility before exercising the draconian powers under Section 14 (of the Slum Act),” cautioning that such powers must not be misused “at the behest of unscrupulous elements” or to discard the rights of private landowners.
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