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The Bombay High Court recently annulled the Slum Rehabilitation Authority's (SRA) acquisition of NESCO Limited's land in Goregaon (East) for a slum redevelopment project. The court determined that the acquisition violated due process under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. NESCO had contested the acquisition, asserting its right to redevelop its land and challenging the legality of the proceedings. In a surprising turn, slum dwellers supported NESCO's stance, citing issues with the previous developer.
The Bombay High Court recently set aside the Slum Rehabilitation Authority's (SRA) acquisition of land owned by NESCO Limited in Goregaon (East). The court found that the state and SRA had failed to adhere to the prescribed procedures under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971. Advertisement
The division bench, comprising Justices G S Kulkarni and Aarti A Sathe, emphasized that the authorities had overlooked NESCO's "preferential right" to redevelop its own land, a right safeguarded under Article 300A of the Constitution. The court noted that the acquisition process was initiated without offering NESCO an opportunity to propose a redevelopment scheme, thereby disregarding the legal rights of the private landowner.
The case traces back to April 2016 when the SRA issued a notification to acquire two adjoining plots owned by NESCO at Ram Nagar, Goregaon (East), which were occupied by slum dwellers. NESCO challenged the acquisition, arguing that the land was private property and that, under the law, it should have been granted the first opportunity to redevelop it. The company contended that the show-cause notices preceding the acquisition were not properly served, hearings were denied, and the SRA's compensation offer of 12 lakh was insufficient.
In an unexpected development during the litigation, the slum dwellers themselves supported NESCO's case. They informed the court that their previous builder, N Rose Developers, had misled them and failed to implement the rehabilitation project. Consequently, their society passed a resolution in April 2025 to terminate the developer's appointment and collaborate with NESCO and its proposed associate, Gyan Buildtech Pvt Ltd.
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