The Bombay High Court has issued directives to newly appointed Slum Rehabilitation Authority (SRA) nodal officers to ensure prompt action on complaints related to the non-payment of transit rent during the redevelopment process. These directives come in response to Public Interest Litigations (PILs) filed in 2019 regarding the non-payment of transit rent to eligible slum-dwellers, particularly in projects by Omkar Realtors and Developers Pvt Ltd. The court has mandated transparency, requiring the SRA to report on the number of complaints received and resolved. The court's intervention aims to expedite the resolution of transit rent disputes and hold relevant parties accountable, including developers and the SRA.
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The Bombay High Court, in a recent ruling, has issued directives to newly appointed Slum Rehabilitation Authority (SRA) nodal officers, emphasizing the need for prompt action within a 30-day window when handling complaints related to the non-payment of transit rent to eligible individuals and slum-dwellers during the redevelopment process. The Honorable Chief Justice Devendra Kumar Upadhyaya and Justice Arif Doctor presided over this significant legal development, with a focus on ensuring the timely resolution of transit rent issues.
The court's directives extend beyond merely addressing the complaints. The SRA has been mandated to provide a detailed account of the actions taken to resolve unpaid transit rent disputes. Specifically, the court has requested information on the number of complaints received by the nodal officers and the number of cases successfully resolved. This transparency measure aims to ensure accountability and oversight in the SRA's operations.
This legal intervention stems from two Public Interest Litigations (PILs) filed in 2019 by Vijendra Rai, a lawyer who raised concerns regarding the non-payment of transit rent to eligible slum-dwellers. Rai's primary focus was on 17 projects undertaken by Omkar Realtors and Developers Pvt Ltd, where transit rent issues had been persistent.
The court's involvement in this matter began in July 2023 when it directed the SRA to appoint nodal officers and actively seek representations and complaints from slum-dwellers affected by transit rent disputes. Subsequently, in August, the SRA informed the court that nodal officers had been appointed in Mumbai. However, Advocate Inamul Khan, representing a slum-dweller, pointed out that it typically took a year for the SRA to decide on complaints, highlighting the urgency of addressing the issue.
During the proceedings, Advocate Rebecca Gonsalves, appointed as amicus curiae, presented evidence from the SRA and the developer indicating that work had been ordered to stop at seven construction sites due to issues related to the sale component. Despite these orders, construction activities appeared to continue. In response, the judges took the unusual step of appointing two advocates as court commissioners to physically verify whether work on sale component buildings had genuinely ceased.
Additionally, the court took note of an August 1 circular issued by the CEO of SRA, which outlined measures to prevent incidents of non-payment of rent. The circular stipulated that developers should deposit advance rent for two years and provide post-dated cheques for the remaining rent period. While senior advocate Anil Sakhare, representing the SRA, argued that these measures would apply to future and revised schemes, the judges pointed out that the circular explicitly referenced the two PILs and the court's July 19 order. Therefore, they ruled that the circular should apply to ongoing schemes, and they instructed Sakhare to file an affidavit regarding this matter.
Addressing the outstanding rent issue, Sakhare explained that notices were issued in cases of default, and if developers failed to comply, stop-work notices were issued for the sale component of the projects. However, the judges expressed concern about the adequacy of these measures and reminded all parties involved, including the developers, that they were bound by statutory regulations to ensure the timely payment of rent.
In conclusion, the Bombay High Court's recent directives and interventions seek to expedite the resolution of transit rent disputes for eligible slum-dwellers and hold the SRA and developers accountable for their actions. The court will continue to monitor the progress of this matter, with the next hearing scheduled for September 26, 2023.
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