Slum Redevelopment – SRA – Pre-emptive or preferential right of Public Sector Undertaking over Private Developer – Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971

The petitioner – Corporation is the owner of the property. The petitioner was not given opportunity to redevelop the slum on the said property.   On 19.9.2014 it was informed to get its name on the property card in two months.  However, at that time, Slum Act did not provide for specific time limit for an owner to submit a redevelopment proposal.  The amendment now says that the owner’s proposal for self-redevelopment must come in 120 days.

However, no opportunity was given to the petitioner.   But by the orders dated 15.2.2017 and 17.5.2017 of the Slum Rehabilitation Authority was to permit the respondent no.14 private developer for slum redevelopment on the land of the Petitioner – Public Sector Undertaking.

This is a unique case where a State-owned Corporation is deprived of its property rights by another State instrumentality.

HELD that  if a preemptive right is afforded to a private owner of the land, then there is no reason why same right should not be given to the State-owned Corporation which also owns the land.   The State Corporation and owner has pre-emptive and preferential rights over the private developer.   There is no valid reason for the SRA to favour a private developer over State Corporation which has ownership of the land and capable of executing the redevelopment similar to any private developer.   Moreover, the financial benefits of the project will go to the public exchequer.

Maharashtra State Textile Corporation Ltd Vs. The State of Maharashtra and others in Writ Petition NO.1453 of 2017 with Chamber Summons No.343 of 2018 in W.P.No.1453 of 2017