Harihar Krupa Co-Operative Housing ... vs Yash Developers And Ors on 14 October, 2022
41. It is important to note that even in a case where the
developer is not facing insolvency, the Supreme Court in Yash
Developers v. Harihar Krupa Coop. Housing Society Ltd., (2024) 9
SCC 606 has clearly held that if there is undue delay in
implementing a slum rehabilitation scheme, such delay cannot be
permitted to continue indefinitely. In such cases, the removal of
the developer is justified. This ruling highlights a very important
principle: that the rights of the slum dwellers and their society to
seek replacement of the developer are not merely contractual in
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nature but are statutory safeguards rooted in public interest. The
statutory framework governing slum redevelopment is designed
not merely to protect private rights but to ensure that the larger
public purpose -- namely, the rehabilitation of slum dwellers -- is
not frustrated due to inefficiency or inaction of the developer.
Therefore, the power of the Slum Rehabilitation Authority (SRA)
under Section 13(2) to remove a non-performing developer is a
critical tool to prevent development projects from getting stuck
indefinitely.