Supreme Court reiterates that a landowner's preferential right under the Slum Act overrides State acquisition powers, ensuring redevelopment control remains with the lawful property owner.

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Case Overview

Case Name: Jyoti Builders vs. Chief Executive Officer & Ors.

A Bench of the supreme court comprising Justice JB Pardiwala and Justice KV Viswanathan dismissed a plea seeking compulsory acquisition of a 2,005 sq. m plot in Malad, Mumbai reserved as a Recreational Ground . The appellant, Jyoti Builders, sought acquisition under Section 14 of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 based on a 2015 SRA order . However, the land was sold in 2022 to Alchemi Developers, who then submitted their own slum rehabilitation proposal . The central issue concerned the preferential right of landowner to redevelop slum-affected land before the State invokes acquisition powers .

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Key Aspects

Before examining the legal questions, it is essential to understand the dispute's foundation-two competing rehabilitation proposals and the owner's statutory priority under the Slum Act :

• Jyoti Builders relied on a 2015 SRA acquisition order for its slum rehab scheme .
• Landowner sold the plot to Alchemi Developers in 2022, who filed a fresh SR Scheme .
• Appellant argued the 2015 order was final and the new sale illegal .
• Core issue: Can State be compelled to acquire land despite the preferential right of landowner?

Legal Insights

The Court clarified the statutory limits of compulsory acquisition under the Slum Act :

• Section 14, Slum Act, 1971: State's acquisition power subject to owner's preferential right .
• Section 3D(c)(i), Slum Act:Owner's priority in redevelopment must be respected .
• Court relied on Tarabai Nagar Co-op Housing Society vs. State of Maharashtra affirming owner's primacy .