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Bombay High Court calls for stringent action against illegal transfers of SRA flats

Synopsis

The Bombay High Court has called for granting the Slum Rehabilitation Authority (SRA) and the state government broad powers to evict unauthorized occupants from SRA flats due to concerns about illegal transfers and profiteering. The court highlights the need to protect the 10-year ownership restriction on these flats and the importance of preventing the trafficking of rehab tenements to address Mumbai's affordable housing crisis. It's also examining a case in Malad (E) where allottees are seeking rental dues, shedding light on a wider issue of unauthorised transfers and subletting.

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The Bombay High Court (HC), in a recent ruling, has expressed the need for empowering the Slum Rehabilitation Authority (SRA) and the state government with broad and potentially stringent powers to expeditiously evict unauthorized occupants from SRA flats. The court's concern primarily revolves around the prevalence of illegal transfers and what they describe as "trafficking in rehab tenements."

In the context of the SRA's rehabilitation flats, which are allocated at no cost to project-affected individuals, the court has highlighted the restriction that disallows the transfer of ownership within a 10-year timeframe, except to heirs. Notably, the court's observations indicate a sense of alarm at what they perceive as a "wholesale racketeering" occurring in Mumbai. 

The act of illegally transferring these rehabilitation flats, often referred to as "trafficking," results in a substantial loss not only to the SRA but also to the state and all law-abiding citizens. The court has taken a stance that is resolute in its determination to rectify this situation.

The court's primary concern is the dire shortage of affordable housing in a city as densely populated as Mumbai. Allowing individuals to profit from these flats at the public's expense is seen as a fundamentally unbalanced practice. In light of these concerns, the court has requested the assistance of the advocate general, Birendra Saraf, to address these issues and potentially introduce stringent measures to uphold the 10-year restriction on transfers.

While the court does not intend to formulate a specific policy or direct the drafting of one concerning the eviction of illegal occupants, it is resolute in its commitment to identify the areas that need to be addressed by the state to ensure the integrity of the 10-year transfer restriction. The court is prepared to issue orders for the removal of unauthorized occupants to safeguard the purpose of these rehabilitation flats. It has noted that the SRA currently lacks an effective mechanism to control these unauthorized transfers, or if such a mechanism exists, it is not functioning properly, as evidenced by the cases before the court.

The HC's deliberations on this matter have far-reaching implications, as it has recognized the need to address a broader issue. In the specific case before it, involving 90-odd allottees of an SRA project in Malad (E), the court is faced with the task of ensuring that rental dues are recovered from a Rs 1.5-crore deposit made by a builder following a court order in December 2021. This issue, however, is emblematic of a much wider concern, as there are instances where original allottees have left their tenements for various reasons, and in some cases, their children have illegally sub-let these flats.

Previously, the HC had called for an inspection by the SRA to identify these illegal occupants in the Malad building. Anoop Patil, representing the SRA, has reported that a new inspection report has been submitted. The HC has granted Anuj Narula, counsel for the builder, time to file an affidavit in response to the situation. Narula has previously indicated that there are at least 20 other similar cases of tenants who have transferred ownership of their flats and 84 others who have rented them out before the expiration of the 10-year period.

In summary, the Bombay High Court has expressed the need for stringent measures to combat the illegal transfer of SRA rehabilitation flats, emphasizing the significant loss this practice incurs for the public and underscoring the chronic housing shortage in Mumbai. The court's commitment to addressing this issue is evident, and it is poised to take action to ensure that these flats serve their intended purpose for project-affected individuals.

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