JYOTI BUILDERS v. CHIEF EXECUTIVE OFFICER

Slum Redevelopment - Preferential Rights of Landowner Prevail Over Mandamus for Acquisition; Occupation Certificate Granted Upon Handing Over Recreational Ground.

Court: Supreme Court of India
Citation: 2025 INSC 1372
Decision Date: 02-12-2025

List of Laws

The Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971; The Maharashtra Regional and Town Planning Act, 1966; Development Control Regulations, 1991; Development Control and Promotion Regulations for Greater Mumbai, 2034; Constitution of India

Case Brief

Facts: Jyoti Builders, the appellant, sought a writ of mandamus to compel the State Government to acquire a specific property (Subject Property) under Section 14 of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. The Subject Property, originally owned by F.E. Dinshaw Trust and later claimed by Phuldai R. Yadav (Respondent No. 5), was part of a larger slum redevelopment scheme initiated by Harishree Enterprises (predecessor of the appellant). The property was reserved for a Recreational Ground (RG) in the Development Plan of 1991. Respondent No. 5 sold the Subject Property to Alchemi Developers (Respondent No. 4) after a prior order (2015 Order) by the CEO-SRA directed its acquisition for the slum scheme. The appellant argued that the SRA's stance changed after Alchemi Developers acquired the property.
Procedural Posture: The appellant challenged orders passed by the CEO-SRA in the High Court, which dismissed their writ petition. This appeal arises from the High Court's judgment.
Issue: (1) Whether a writ of mandamus should be issued to the State Government to acquire the Subject Property under Section 14 of the Slum Act. (2) Whether the appellant is entitled to a full Occupation Certificate for the final sale building in the slum scheme. (3) Whether the appellant has been fully compensated by granting adequate area/FSI for sale.
Holding: (1) No, a writ of mandamus cannot be issued. The power of the State Government under Section 14 of the Slum Act is subject to the preferential right of the owner. (2) Yes, the appellant is entitled to the Occupation Certificate upon handing over the Dark Green Portion (2700 sq. mts.) reserved for Recreational Ground. (3) Yes, the appellant has been fully compensated by granting adequate area/FSI for sale.
Reasoning: The Court reasoned that the power of the State Government to acquire land under Section 14 of the Slum Act is subject to the preferential right of the owner to redevelop the property, as established in Tarabai Nagar Co-Op. Hog. Society v. State of Maharashtra & Ors. and Saldanha Real Estate Pvt. Ltd. v. Bishop John Rodrigues & Ors. The Court found that it was too late to direct acquisition based on the 2015 order. The appellant was entitled to the Occupation Certificate upon handing over the designated Recreational Ground. The Court also directed Alchemi Developers not to construct on the Subject Property, ensuring it remains a Recreational Ground. The court noted that the appellant had already been compensated through FSI.