Supreme Court Upholds Landowner's Right to Redevelop Slum Area.


22-August-2025 Civil Appeals >> Civil & Consumer Law  

In a significant ruling the Supreme Court of India has affirmed the preferential right of a private landowner to redevelop a property declared as a "Slum Rehabilitation Area" (SR Area), dismissing appeals filed by a proposed housing society of slum dwellers, a private developer, and the Slum Rehabilitation Authority (SRA). The case,

Saldanha Real Estate Private Limited & Others v/s Bishop John Rodrigues & Others, centered on the acquisition of a portion of land in Mumbai's Bandra neighborhood. The Court upheld the Bombay High Court's decision to void the land acquisition and allow the landowner, the Church Trust, to proceed with its own redevelopment proposal.


 

 

The dispute involved a plot of land owned by the Basilica of Our Lady of the Mount (Church Trust), part of which had been declared a slum since 1978. The slum dwellers' proposed society, Kadeshwari Society, entered into an agreement with a developer, Saldanha Real Estates Pvt. Ltd. (Saldanha), to redevelop the area. The society and Saldanha then sought to have the Church Trust's land acquired by the SRA, claiming the Trust had failed to come forward with its own redevelopment plan.

The Supreme Court's decision relied on its previous rulings, including Indian Cork Mills (P) Ltd. vs. State of Maharashtra and a judgment of the same date, Tarabai Nagar Co-Op. Hog. Society (Proposed) vs. The State of Maharashtra and others. These precedents established that a private owner has a preferential right to develop an SR Area and must be given proper notice and a reasonable time to do so before the land can be acquired.

Key Findings and Rationale:

The Court's judgment addressed several key issues, beginning with a preliminary objection from the appellants that the High Court's intervention was premature. The Court rejected this, stating that the notice and order for acquisition were administrative actions subject to judicial review, and the High Court was justified in intervening to prevent the creation of third-party rights and subsequent litigation.

The Court further clarified that the 2018 amendment to the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, did not eliminate the need for a specific notice to the landowner. While the amendment introduced a 120-day time limit for landowners to submit a redevelopment scheme after being invited to do so, this limit only becomes applicable after the notice is issued. The Court found that the SRA's failure to issue this notice to the Church Trust was a critical procedural error.

The Court also found no evidence that the Church Trust had waived its preferential right to develop the land. It noted that the Trust had consistently and actively tried to redevelop the property, including by submitting its own comprehensive proposal to the SRA.

Questionable Conduct and Safeguards:

A significant part of the judgment focused on the "disconcerting conduct" of the appellants throughout the process. The Court found that Saldanha was "orchestrating the Society’s actions from behind the scenes," citing its perplexing allegiance to the developer despite an offer from the Church Trust that would have provided larger units to the slum dwellers. The Court also highlighted a letter from Saldanha to the Church Trust that contained a "veiled threat" to acquire the land if the Trust did not sell it.

The Court was equally critical of the SRA's behavior, noting its "singular focus towards opposing the Church Trust's attempts to redevelop". The SRA failed to issue the mandatory notice, processed Saldanha's proposal while the Trust's was pending, and acted with "uncharacteristic urgency" to recommend acquisition despite a pending appeal challenging the land's status as a slum area. The judgment concluded that the SRA had "abandoned their public duty to uphold the Rule of Law and protect the rights of the landowner".

Court's Final Order:

In its conclusion, the Supreme Court dismissed all appeals and upheld the High Court’s judgment. It granted the Church Trust 120 days to submit a new slum rehabilitation scheme, strictly in accordance with applicable laws. The SRA and the state were directed to provide full support to the Trust and process its proposal "as expeditiously as possible" within 60 days of its submission.



MAHARASHTRA SLUM AREAS (IMPROVEMENT, CLEARANCE AND REDEVELOPMENT) ACT, 1971