Mumbai: The Bombay High Court has sharply criticised the state government and the Slum Rehabilitation Authority (SRA) for their prolonged inaction on a decision regarding the change of developer for a stalled redevelopment project in Wadala. The court’s rebuke comes as occupants, displaced since 2013, remain without promised permanent accommodation or transit rent.
Justices Mahesh Sonak and Kamal Khata, in their order on Wednesday, expressed their discontent with the authorities’ lack of urgency in resolving the matter. “State and SRA cannot adopt such an approach when the occupants, who vacated their premises in 2013, are neither close to getting their promised permanent accommodation nor any transit rent,” the judges stated.
The court heard a petition from 20 members of the Shaikh Misree SRA CHS, revealing that Omkar Realtors and Developers Pvt Ltd halted transit rent payments since 2015-16, citing financial difficulties. Despite this, rehabilitation building work has not commenced.
In a previous hearing, the SRA informed the court that lender J C Flowers Asset Reconstruction Pvt Ltd had proposed to take over the project, including Omkar’s assets and liabilities. However, the lender’s advocate, Vinod Kothari, clarified that their proposal was strictly for a change of developer.
The judges underscored the petitioners’ entitlement to transit rent, criticising the bureaucratic hurdles faced in recovering their dues. They noted that “neither the developer nor the lender is willing to pay arrears” and that the state and SRA have been passive regarding the proposals.
“This unfortunate situation cannot continue any longer,” the judges asserted, emphasising that Omkar’s financial incapacity does not absolve it from its duty to pay transit rent. They directed Omkar to deposit all rent arrears in the High Court by July 24, warning that failure to comply would necessitate the presence of Omkar’s managing director in court to disclose the company’s assets.
The judges also expressed frustration over the state and SRA’s lack of action on the proposals submitted by Omkar and the lender, highlighting that nearly six months had passed with no decisive action. The High Court has directed both the state government and the SRA to make firm decisions on the proposals within two weeks, aiming to expedite the resolution of this protracted issue.
This case underscores the critical need for efficient and prompt action by state authorities and regulatory bodies to safeguard the interests of displaced residents and ensure the timely completion of redevelopment projects.
