The Bombay High Court has expressed shock and concern over the alarming levels of fraud observed in a slum rehabilitation scheme at Bandra Kurla Complex (BKC). The court criticized the overall state of affairs regarding slum redevelopment and called for a concerted effort to combat trafficking and profiteering. During the proceedings, the developer involved in the BKC project informed the court that tenancy rights for the slum units had been exchanged for exorbitant amounts, reaching up to Rs 2.3 crore.

In light of these revelations, the High Court emphasized the need to revisit the existing policy and reconsider the law governing slum redevelopment. The court pointed out that the current law provides an inherent guarantee of receiving a capital asset for free, despite encroaching on public land. It proposed that instead of granting ownership rights that can be transferred or sold, slum dwellers should be given rights to use the allocated flats.

The court further highlighted the failure of the slum rehabilitation law, enacted in 1971, to make Mumbai slum-free even after five decades. Justices Gautam Patel and Neela Gokhale, presiding over the case, expressed their skepticism regarding the city's current status and suggested that the policy should be reconsidered at the highest level to address the persisting issue.

The High Court was hearing a series of petitions filed by slum dwellers and a new developer, Budhpur Buildcon Pvt Ltd, who had taken over a slum scheme in Kolekalyan within the Bandra Kurla Complex. Previously, the project was being developed by Housing Development and Infrastructure Ltd (HDIL), which is now undergoing insolvency proceedings. The slum dwellers were seeking transit rent arrears and raising concerns about illegal occupants, while the new builder, an Adani group company, argued that the 2019 petition filed by the slum dwellers had suppressed crucial data indicating that a significant number of them had already transferred their tenancy rights for substantial sums.

During the proceedings, the court suggested a long-term measure of "insulating" the Slum Rehabilitation Authority (SRA) from political influences. As a part of its immediate actions, the court appointed a court receiver to take notional possession of the slum rehabilitation project at Kolekalyan. The court also directed the SRA special officer to identify trespassers and transferees. The SRA clarified that the slum scheme has a mandatory 10-year lock-in period, after which allottees can sell or transfer their rights to third parties.

Justice Patel, while dictating the order, stressed the importance of reevaluating the existing policy. He proposed an alternative approach where eligible hutment dwellers would be provided with a place for use and residence without ownership rights. He suggested that a premium be paid to the SRA for each subsequent transfer of such rights.

The developer, Budhpur Buildcon, requested an amendment to a previous court order that exempted the SRA from reassessing the eligibility of slum dwellers whose eligibility had already been accepted. The request was made in response to a petition by 31 slum dwellers seeking transit rent arrears. Budhpur Buildcon presented documents received from the HDIL resolution professional, revealing that a significant number of slum dwellers had transferred their tenements to HDIL in 2006 and 2007, receiving substantial amounts in return.

The court described these numbers as alarming and indicative of an ongoing fraud against the law. Additional groups of slum dwellers from the BKC project also filed petitions, highlighting unpaid transit rents and the inclusion of illegal occupants. In response, the developer's counsel argued that many of the petitioners had already received lump-sum payments for their tenancy rights. Another set of petitioners claimed to have been transferred rights to new rehabilitation homes from the original eligible slum dwellers.

In conclusion, the Bombay High Court emphasized the urgent need for comprehensive reforms in the slum rehabilitation policy to address the rampant fraud and improve the living conditions of slum dwellers. The court's suggestions included revisiting the law, providing usage rights instead of ownership rights, and insulating the Slum Rehabilitation Authority from political interference. These measures aim to rectify the shortcomings of the current system and ensure effective and fair slum redevelopment in Mumbai.