Cracking the whip on non-payment of transit rent to eligible slum dwellers by developers, the Bombay High Court on Wednesday directed the nodal officers of the Slum Rehabilitation Authority (SRA) to take prompt action within 30 days on complaints related to non-payment of transit rent by such persons.
A division bench of Chief Justice DK Upadhyaya and Justice Arif Doctor also directed the slum authority to inform on the next date of hearing the number of complaints received by the nodal officers, number of complaints disposed of and action taken on them.
The HC was hearing two public interest litigations (PILs) filed by advocate Vijendra Rai highlighting the issue of non-payment of transit rent by developers to eligible persons / slum dwellers. The PILs pointed out 17 projects of Omkar Realtors and Developers Pvt Ltd.
Following the PIL, the HC on July 19 had directed SRA to set up a nodal officer to address complaints from slum-dwellers. SRA, on August 7, informed the HC that nodal officers are appointed in civic wards across Mumbai.
A note was submitted by advocate Rebecca Gonsalves, amicus curiae (friend of the court), based on the affidavits of SRA and developer, pointing out that a stop work notice was issued to projects of Onkar Realtors at seven places – Parel, Mahalaxmi, Bandra, Andheri, Goregaon and Malad – with regard to the sale component buildings.
However, Rai contended that the developer had stopped work only on the rehab buildings and continued work on the sale component buildings.
The HC then directed that two advocates be appointed as court commissioners to inspect the construct sites at these seven places in the city to verify if work on sale buildings has actually “stopped” pursuant to SRA notice.
Gonsalves also said that as per the SRA and developer, only Rs 74 crore transit rent was outstanding.
When the advocate for the developer said that they are paying the rent, the judges said it was their duty to pay the rent regularly.
“We are making it very clear, you are primarily responsible to pay rent… If you are found deficient, rest assured, if they (SRA) don’t take action, we’ll take action,” the CJ said.
Senior advocate Anil Sakhare pointed out a circular issued by the SRA CEO on August 1 which indicated steps to be taken to prevent such incidents of non-payment of transit rent by developers. According to the circular, the developer was asked to deposit advance rent of two years and post-dated cheques for the remaining period.
Sakhare clarified that this would be applicable to new and revised schemes.
The judges pointed out that the circular refers to the two PILs and also the court’s July 19 order. Hence, the same should apply to the ongoing schemes as well. The court then asked Sakhare to file an affidavit in this regard.
On a court query on action taken in case of non-payment of transit rent, Sakhare said that a notice was issued in case of default. If the developer fails, stop-work is issued for the sale component building. “In case of delay, we take action for removal of the developer and in his place another developer can be appointed,” said Sakhare.
