The judgment, delivered on February 11, 2026, by Justices G.S. Kulkarni and Aarti Sathe in Writ Petition No. 1612 of 2024 (Om Vishwashanti CHS (Proposed) & Okhawala Shelter, Builders & Developers vs. Mumbai Municipal Corporation & Ors.), upholds the Additional Municipal Commissioner’s order dated January 10, 2024. This order cancelled the NOC dated December 31, 2021, originally issued by BMC’s Estate Department to facilitate a Slum Rehabilitation Authority (SRA) scheme on plot bearing CTS No. 558B (and sub-divisions) in Malad East.

Background of the Case

The land in question, owned entirely by the BMC, is reserved under the Development Plan for public purposes: a Municipal Ward Office, Disaster Management Facility, Cyclone Shelter Centre, and an existing Municipal Chowky. It is also affected by road widening setbacks.

Around 134 slum structures exist on the plot. In 2016, the slum dwellers formed the proposed Om Vishwashanti Cooperative Housing Society (through chief promoter Sadhashiv Nanekar) and appointed Okhawala Shelter, Builders & Developers as the implementing agency via a development agreement and power of attorney.

The society, through the developer, proposed a Slum Rehabilitation Scheme under Regulation 33(10) of the Development Control and Promotion Regulations 2034 (DCPR 2034). After obtaining necessary clearances, the SRA issued a Letter of Intent (LOI) on November 11, 2022, conditional on various approvals — including concurrence from BMC departments for the public amenity building (minimum 4,705 sqm built-up area in one structure, floor plate of at least 1,300 sqm per floor, separate from rehab tenements for fire safety and public access reasons).

Despite the LOI, the developer failed to submit feasible or acceptable revised plans for over a year. BMC officials rejected initial proposals in meetings (February and April 2023) for inadequate design: narrow building, single staircase, improper location, insufficient open spaces, parking, ventilation, and security risks for a public administrative building serving ~6 lakh residents in the newly split P/East Ward.

After a show-cause notice and hearing, the Additional Municipal Commissioner cancelled the NOC on January 10, 2024, directing the SRA to record the cancellation and allowing BMC to construct the ward office and rehabilitate eligible slum dwellers directly under its prevailing policy — all at BMC’s expense.

The petitioners challenged this in the High Court. An earlier single-judge bench dismissed the petition in June 2025 on grounds of alternate remedies and disputed facts, but the Supreme Court (November 28, 2025) modified that order and remanded the matter for merits review. The Division Bench, after fresh hearings, found no infirmity in BMC’s decision.

Key Observations by the High Court

• BMC, as the landowner, holds paramount rights over the reserved public plot — superior to those of slum dwellers or private developers.
• The NOC and LOI were conditional; the developer breached key obligations (e.g., conditions 33 and 53 requiring BMC departmental approvals for the public building).
• The developer’s lackadaisical attitude and failure to provide viable plans for over a year justified cancellation.
• Public interest demands urgent construction of the P/East Ward Office near Malad East station — cannot be delayed by developer non-compliance.
• The court cited precedents affirming landowner priority in slum redevelopment on public land (e.g., Indian Cork Mills, Bishop John Rodrigues, Tarabai Nagar, Nesco Ltd.).

The ruling effectively ends the private developer’s role. BMC will now rehabilitate eligible slum dwellers (as per earlier Annexure-II: 79 eligible, 34 ineligible) directly, funding the rehab tenements and public amenities from its own resources — bypassing the usual SRA private-developer model (where sale components subsidize rehab).

This outcome aligns with BMC’s broader efforts to redevelop slums on its land (e.g., recent EOIs for 64 schemes, though most involve appointing developers). While direct municipal execution remains rare — given funding constraints and preference for public-private partnerships — the judgment enables BMC to step in when developers default on reserved amenity obligations.

BMC officials have not yet commented on timelines or exact modalities, but the decision underscores the civic body’s authority to prioritize public infrastructure alongside humane rehabilitation.

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The post BMC Takes Over Slum Rehabilitation Project in Malad East After High Court Upholds Cancellation of Private Developer’s NOC appeared first on Square Feat India.