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SC upholds preferential right of landowner to slum redevelopment

August 24, 2025 legaldeli

Slum Act – SRA – Acquisition & Preferential Right of landowner for redevelopment

When Process Fails, Rights Prevail – SC Backs Landowner’s primary right to slum redevelopment in Slum Act dispute

The land at Bandra is owned by the Church Trust. An area of 1,3334 sq.m was declared as Slum Area in 1978 and area extended to 1,532 in 2002. The slum dwellers formed the Society. The said Society initially appointed the developer and notified the owner, entered into development agreements, individual agreements and tripartite agreements.

In 2017, after termination of the agreements with earlier developer, new Developer was appointed.

However, the owner intended to redevelop its land with rest of the land and adjoining plots.

In this background, in 2021, SRA issued the public notice for acquisition.

The High Court held that the owner had preferential right to develop the slum land, quashed the notice of acquisition and allowed the owner to proceed with the development of the subject land.

HELD that there is no statutory requirement to issue a separate notice for initiation of proceedings under Section 13 of the Slums Act as a consequence of the 2018 Amendment and as notice was already effected on the land owner under Section 3C.

SRA cannot proceed for acquisition of the land unless (i) a notice cum invitation is extended and (ii) thereafter, the right of the owner is extinguished if it fails to submit a redevelopment scheme within the prescribed period of 120 days.

The inevitable consequence of the SRA’s omission to issue separate notice under Section 13 is that the owner’s preferential right to develop the land remains intact. In the absence of a valid notice or opportunity, there existed no legal basis to extinguish this right. The acquisition was, therefore, vitiated in law, falling afoul of the prescribed procedure.

The Maharashtra Slum Areas (Improvement, Clearance and Development) (Amendment) Act, 2017.

Judgment dated 22.8.2025 of the Supreme Court in SLP (Civil) No.15454 of 2024 of Saldanha Real Estate Private Limited Vs. Bishop John Rodrigues and others with connected matters

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