Supreme Court Upholds Tenants’ Rights: Mumbai Municipal Corporation Ordered to Provide Alternative Housing

The case of Municipal Commissioner, Municipal Corporation of Greater Mumbai vs. Panna Mahesh Chandra Dave & Others revolved around the forced demolition of tenant structures by the Municipal Corporation of Mumbai. The Supreme Court had to decide whether the tenants were entitled to alternative accommodation or compensation, given that their properties were demolished without due process.

Background of the Case

The case involved a dispute between the Municipal Corporation of Greater Mumbai and tenants residing in structures located at CTS Nos. 4009/1 to 4009/7, Village Dahisar, Taluka Borivali, Mumbai. The respondents (tenants and property owners) approached the Bombay High Court after the municipal authorities demolished their buildings without following legal procedures.

Demolition and Dispute

The tenants had been residing in the buildings since at least 1961, and the structures had been legally assessed by the Municipal Corporation for tax purposes. Despite this, the corporation demolished the buildings on October 26, 2017, citing road widening as the reason. The tenants argued that they were forcibly evicted without being allowed to remove their belongings.

Arguments by the Petitioner

The Municipal Corporation presented the following arguments:

• The structures were obstructing the widening of Padmakar Javle Road, an essential public access road to Dahisar Railway Station.
• A road-widening plan had been approved as far back as 1974, expanding the road width from 5 meters to 13.4 meters.
• Some tenants were offered alternative housing, but they refused to take possession.
• Only four out of eleven tenants were found eligible for alternative accommodation under municipal policies.

Arguments by the Respondent

The tenants and property owners countered with these arguments:

• The demolition was carried out unlawfully, without following the due process of law.
• Their structures were legally assessed by the municipal corporation, which had been collecting property taxes since 1961.
• The municipal corporation had previously agreed to grant Transferable Development Rights (TDR) to compensate property owners.
• Tenants were entitled to alternative housing as per municipal policies for displaced occupants.

Bombay High Court Ruling

The Bombay High Court ruled in favor of the tenants and owners, holding that the demolition was conducted in a high-handed manner without following legal procedures. However, instead of ordering restitution, the court directed the Municipal Corporation to:

• Consider the application of property owners for Transferable Development Rights (TDR) or Development Right Certificates (DRC) within 60 days.
• Provide alternative housing to all affected tenants in the vicinity of the demolished structures.
• Ensure that the allotted premises had proper road access and commercial viability.
• Allot these premises free of cost but impose reasonable terms and conditions.

Supreme Court Judgment

The Supreme Court upheld the High Court’s decision, rejecting the Municipal Corporation’s challenge. The Court ruled:

“The High Court found that the municipal corporation’s actions were high-handed and in violation of due process. Given that a public road had already been constructed on the land, restitution was not practical, but the tenants were rightfully entitled to alternative housing.”

The Supreme Court emphasized the following points:

• Municipal authorities must follow proper legal procedures before demolishing structures.
• Even if road widening is a public necessity, affected occupants must be given alternative accommodation or compensation.
• Transferable Development Rights (TDR) should be granted to property owners as previously promised.
• Tenants had lived in the structures for decades and had a legitimate expectation of being accommodated elsewhere.

Legal Precedents Considered

The Supreme Court referred to several landmark rulings reinforcing property rights and due process in demolitions:

• Olga Tellis vs. Bombay Municipal Corporation – Holding that even unauthorized occupants have the right to fair notice and alternative arrangements.
• Chameli Singh vs. State of Uttar Pradesh – Recognizing the right to housing as part of the fundamental right to life.
• Shantistar Builders vs. Narayan Khimalal Totame – Establishing that eviction must be accompanied by resettlement options.

Final Outcome

The Supreme Court dismissed the municipal corporation’s appeal and upheld the High Court’s ruling:

• Alternative housing must be provided to tenants within the same locality.
• The municipal corporation must decide on the TDR application within 60 days.
• The allotment of new premises should be completed by June 30, 2020.
• All affected tenants must receive housing free of cost.

This judgment reaffirmed the rights of tenants and property owners against arbitrary demolitions and ensured fair compensation for those displaced by municipal projects.

Petitioner Name: Municipal Commissioner, Municipal Corporation of Greater Mumbai.
Respondent Name: Panna Mahesh Chandra Dave & Others.
Judgment By: Justice N.V. Ramana, Justice Vineet Saran, Justice V. Ramasubramanian.
Place Of Incident: Mumbai.
Judgment Date: 31-01-2020.

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