Builder to gain as Mhada junks prime SoBo chawl acquisition

Mumbai: For the first time ever, the Maharashtra government has cancelled the land acquisition of a residential chawl in south Mumbai, paving the way for the property to be taken over by a builder. The nearly 2-acre plot, which holds seven buildings and 297 tenements, behind Bhatia Hospital at Grant Road has a development potential in excess of Rs 1,200 crore, real estate experts said. 

    Alarmed at the cancellation, a section of the chawl's 1,500 residents slapped a legal notice last week against Mhada, the state agency entrusted with low cost housing, terming the move "illegal" and "without authority of law". 
    The early 20th century Dattatray chawl was among 320 properties approved for acquisition in island city by Mhada. 'No rule in Mhada Act to cancel land acquisition' 
Mumbai:The Dattatray chawl in south Mumbai was acquired about two decades ago under the contentious chapter 8A of the Mhada Act. The scheme provides for a one-time compensation of 100 months' rent from each tenant to the landlord in return for ownership rights; this clears the way for Mhada to acquire the property. 
    Landlords opposed the acquisition, however, and the case wound up before a ninejudge bench in the Supreme Court, where it has been pending for some years. All this while, local builders have been salivating at the development potential of the seven ageing buildings on the sprawling chawl complex. 
    Last year, Mhada's chief officer (Mumbai repair and reconstruction board) placed a proposal before the state government to cancel the land acquisition, even though the Mhada Act does not allow such acquired properties to be "deacquired". In August this year, a housing department official, SL Pulkundwar, wrote to Mhada, cancelling the acquisition and granting permission for the redevelopment of the property by a private builder. 
    Early this month, B B Nagvekar, chief promoter of the proposed Shree Dattaprasad Cooperative Housing Society, sent a legal notice to the state housing department and Mhada against the government's move. "There is no provision in the Mhada Act and its chapter 8A, which gives powers to either Mhada or the state government to cancel the process of acquisition," said the society's advocate Mihir Desai. 
    Requesting the withdrawal of the letter, the notice said, "It is against the interest of the occupants even on merits and my clients apprehend that this has been done at the instance of certain vested interests." 
    In 1994, as many as 254 tenants had approved Mhada's acquisition process. The chawl landlord's application in court later stated that 130 of them had died over the years. Nagvekar wrote to Mhada that almost 80 tenements had changed hands illegally, although chapter 8A did not allow such tenancy transfers. 
    "It is likely that these illegal tenants and their agents are trying to put pressure on the government to de-acquire the land. The government can do it, provided it amends the act," said housing activist and former Mhada president Chandrashekhar Prabhu. 
    Prabhu recently wrote to the CM, asking for filing of FIR against those involved in transfer of tenancies in a property belonging to Mhada; "I also request you to immediately withdraw the housing department letter as it is not only illegal, but also not in public interest." 
CHANGE OF HEART 
KEY FIGURES 
1994 | Mhada acquires Dattatray chawl, one of the oldest in the island city 
7,000 sq m | Plot size 
    1,200cr | Current development potential of the land 
Aug '13 | Govt permits the land's de-acquisition 
    WHAT IS MHADA? 
    Formed in 1976, it is the apex housing authority in the state. Its main task is to build houses for economically weaker sections of the society and the middle class 
    Over 16,000 buildings in the island city pay a cess to Mhada. Most of these were built before 1940. The cess is disbursed whenever these tenanted properties require repairs and reconstruction 
GENESIS OF CONFLICT 
    At the heart of the conflict is a little-known provision of the Mhada Act (chapter 8A). It allows tenants of pre-1940 cessed properties to become owners by paying the landlord 100 months' rent and pave the way for Mhada to acquire the entire property 
    The scheme has to be initiated by at least 70% tenants, who must form a cooperative society, collect money and redevelop the property 
    But its implementation was stayed by the Supreme Court over a decade ago after city landlords challenged the scheme 
    The case was first heard by a division bench in the apex court. It was subsequently referred to a five-judge constitutional bench, which in turn passed it on to a seven-judge bench. The matter was then referred to a nine-judge bench, which is yet to decide on the case

The two-acre Dattatray chawl at Grant Road has a 1,200cr potential