The Bombay High Court has upheld the removal of Sushanku Builders Ltd from a slum rehabilitation project in Bandra due to significant delays in its completion. The Court dismissed the builder’s plea against a January 2024 order by the apex grievance redressal committee under the Slum Act, which ordered the builder’s removal.
The Court emphasized that while the builder had been exonerated of delay accusations up until August 2021, their actions after that point were deemed unacceptable. The builder, appointed by the slum dwellers' society, was seen as a mere licensee tasked with executing the project and profiting from it, with the ultimate goal of rehabilitating the slum dwellers. However, the failure to complete the project on time warranted their termination.
Sushanku Builders had challenged the committee's decision to replace them with a new developer for the Slum Rehabilitation Scheme (SRS) involving 220 slum dwellers. The builder argued that the delays were caused by disputes with disgruntled slum dwellers, who had hindered the project’s progress since 2012. Despite this, the High Court noted that the builder’s failure to meet deadlines after 2021 warranted their removal.
The Court further clarified that under the Slum Act, developers can be removed if there are delays or violations, as the primary aim is to clear the slum and rehabilitate its residents in authorized structures. The builder’s request to appoint a third-party developer was also seen as a key factor in the decision. The Court ruled that the grievance redressal committee’s decision to replace the builder was not an overstep of its powers, and its purpose was to expedite the slum rehabilitation project.
The new developer has been given a two-week period to issue a notice for a meeting with the slum society before proceeding with the project, with the builder still having the option to appeal to the Supreme Court.