On May 16, the Supreme Court will have a final hearing in the Special Leave Petition (SLP) filed by the Maharashtra Housing and Area Development Authority (MHADA) to recover ₹40,000 crore from several developers in Mumbai.
MHADA had challenged Bombay HC order
The SLP was filed by MHADA challenging the Bombay High Court’s order in the Public Interest Litigation (PIL) filed by activist Kamlakar Shenoy. The PIL pertains to alleged “unholy nexus between the defaulting developers and the officials of MHADA that caused and resulted in unlawful losses to the state's exchequer to the tune of ₹40,000 crores by virtue of defaulting builders not surrendering surplus area of approximately 1.37 lakh sq. mtrs or 30 lakhs sq. ft saleable area, which otherwise is exclusive property of the state as per the terms laid out in the Development Control Regulation 33(7) Scheme of the Maharashtra government."
Challenging the appeal of Chief Executive Officer of MHADA, activist Shenoy in his reply has argued that though the fact of the loss of ₹40,000 Crore was well within the knowledge of MHADA officials, nothing has been done since the last over 30 years against the defaulting developers intentionally by MHADA officials. MHADA has failed to protect its own interest and that of the state government, he alleged.
Wilful acts of omission and commission by MHADA officials: petitioner
Shenoy has claimed that wilful acts of omission and commission on the part of MHADA officials has not only caused wrongful loss to the state but also wrongful gain to the developers. It is the mandatory duty of MHADA officials to recover the surplus area tenements. However, instead of recovering the surplus area tenements with interest from the developers, all the efforts have been made to shield and protect the developers and MHADA officials since 1991.
As per the submissions that were made to the Bombay High Court, Shenoy had pointed out that the developer while undertaking redevelopment of cessed buildings in Mumbai City should surrender surplus constructed area to Mumbai Buildings Repair and Reconstruction Board, an arm of MHADA, before it gives a no objection certificate to the civic body to issue Occupation Certificate to the rehabilitated building, which shall thereafter be occupied by original occupants of the old building. However, during all these over three decades, this is getting blatantly violated.
ACB had sought permission to probe in 2018
In fact, in 2018, the Anti-Corruption Bureau had sought permission of the home department to conduct a detailed enquiry against the developers in the 272 projects who did not surrender the surplus area and also inquire against against MHADA officials who did not take efforts to recover the same. But, the home department did not give permission.
If such surrender is not done, the rules declare such completed projects to be termed as “illegal”.
