The Bombay High Court has instructed the residents of Patra Chawl, located in Goregaon (East), to take possession of their rehabilitation units by April 30. Should they fail to do so, the court has indicated that the unoccupied flats may be repurposed for public use. The court expressed concerns regarding the potential loss of government revenue if illegal transfers of these flats result in third-party rights. This was highlighted by referencing a hotel operating within a slum redevelopment project in Bandra-Kurla Complex (BKC).
A division bench comprising Justices Girish S. Kulkarni and Aarti A. Sathe addressed a petition from the Goregaon Siddharth Nagar Sahakari Griha Nirman Sanstha Limited (Patra Chawl) regarding issues related to the quality of the rehabilitation building, including problems with crumbling plaster and malfunctioning lifts.
Siddharth Nagar, home to approximately 672 families, was vacated, and its residents are entitled to permanent rehousing in the new tenements. Following the failure of the original developer, Guru Ashish Constructions, which faced an Enforcement Directorate investigation, the Maharashtra Housing and Area Development Authority (MHADA) assumed responsibility for completing the project in 2018.
The High Court had previously reiterated that transit rent payments would cease effective April 1. On April 2, residents informed the court of their readiness to occupy the new rehabilitation units. However, during the recent court session, it was revealed that only 39 members had taken possession thus far. Senior advocate Pradeep Sancheti, representing the petitioner society, reported that more members expressed their willingness to occupy the flats, prompting the court to set a deadline for completion of this process by April 30. The court instructed MHADA to assign an officer and a team to be present daily at the site to facilitate the handover.
The court noted that if any resident does not currently require a tenement, MHADA is authorized to allocate those units for suitable public housing projects. Residents wishing to occupy in the future can notify MHADA with a three-month advance notice.
Concerns were also raised regarding the creation of third-party rights by tenants in projects managed by MHADA or the Slum Rehabilitation Authority (SRA). Justice Kulkarni remarked, “There is no documentation explaining how these transactions occur. It is preferable for the government to benefit from stamp duty. If illegal transfers continue, the government is losing out on revenue.”
Advocate Manisha Jagtap, representing MHADA, highlighted a case in which a flat in the BDD Chawl redevelopment was listed on Airbnb, and actions were being taken upon discovery. Justice Kulkarni responded with concern, noting, “Why is it only Airbnb? There was a hotel operating on three floors in an SRA project in Bandra-Kurla Complex. This matter was under our review.”
In concluding the case, the High Court determined that no further intervention was necessary and left the other issues raised by the parties open for consideration before the appropriate forum.
