Bombay HC Upholds Removal of Sushanku Builders for Delay in Slum Rehabilitation Project

Bombay HC Upholds Removal of Sushanku Builders for Delay in Slum Rehabilitation Project

Bombay HC Upholds Removal of Sushanku Builders for Delay in Slum Rehabilitation Project

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.

About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

LinkedIn - https://www.linkedin.com/in/sandeepsadhmpe/