Bombay High Court
SHREE SAMARTH SPARK DEVELOPERSversusTHE STATE OF MAHARASHTRA THROUGH THE SECRETARY HOUSING DEPARTMENT
- Decided
- Disposal
- DISPOSED OFF
Holding
The correction order dated 22 June 2026 is quashed as it was passed without affording a hearing, and the writ petition is allowed.
Summary
The petitioners, Shree Samarth Spark Developers, challenged a correction order dated 22 June 2026 issued by the Chairperson of the AGRC, which modified an earlier stay order under Section 13(2) of the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971 by directing the deposit of 50% of the audit amount as transit rent. The petitioners contended that the AGRC passed the correction without affording them a hearing, amounting to a substantive review of the original order. The Court observed that after the original order, the Authority had already accepted a Rs 50 Lakhs deposit on 17 June 2026, but a dispute over the quantum of transit rent remained, necessitating a hearing before any modification. Consequently, the Court held that the AGRC could not have validly issued the impugned order without due process and quashed the communication dated 20 July 2026. The Court directed the AGRC to provide a fresh hearing if it wishes to vary the conditions of the stay. The writ petition was allowed and disposed.
Issues considered
- Whether the AGRC’s correction order of 22 June 2026, directing a revised deposit of transit rent, is valid without granting a hearing to the petitioners.
- Whether the modification of a stay order under Section 13(2) of the Maharashtra Slum Areas Act constitutes a substantive review requiring procedural due‑process.
Legislation cited
Subjects
- Maharashtra Slum Areas Act
- Section 13(2)
- stay order
- transit rent
- due process
- hearing
- writ petition
- AGRC
- civil procedure
Judgment
2026:BHC-OS:19064
23 wp4044 of 2026.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO.4044 OF 2026
Shree Samarth Spark Developers and Anr. ... Petitioners
versus
The State of Maharashtra and Ors. … Respondents
Mr. Mayur Khandeparkar with Mr. Samir Suryawanshi, Ms. Bhakti Wast, Mr.
Malhar Bageshwar, for Petitioners.
Mr. Vishwanath Patil with Mr. Harshwardhan Karande, for AGRC.
Mr. Prakhar Tandon i/by Ms. Ravleen Sabharwal, for SRA.
Mr. Dipesh Siroya, AGP for State.
CORAM: N.J.JAMADAR, J.
DATE : 25 AUGUST 2026
P.C.
1. Heard the learned Counsel for the parties.
2. The challenge in this Petition is to an order dated 22 June 2026,
whereby the Chairperson of the AGRC has corrected the order dated 15 May
2026, whereby the stay was granted to the execution and operation of the
order under Section 13(2) of the Maharashtra Slum Areas (Improvement,
Clearance and Redevelopment) Act, 1971, subject to the deposit of a sum of
Rs.50 Lakhs towards the transit rent with SRA by issuing Corrigendum to the
Roznama. By the impugned order, the Petitioner – developer has been
directed to deposit 50% of the audit amount.
3. The grievance of the Petitioners is that the said order was passed
without providing an opportunity of hearing to the Petitioners and it constitutes
SSP 1/2
23 wp4044 of 2026.doc
a substantive review of the order dated 15 May 2026.
4. The Court finds that, after the order dated 15 June 2026, the Authority
had accepted the deposit of Rs.50 Lakhs vide communication dated 17 June
2026. There is a dispute about the quantum of transit rent, which the
Petitioner is liable to deposit. In these circumstances, the Chairperson –
AGRC could not have passed the impugned order without providing an
opportunity of hearing to the parties. It would have been appropriate for the
AGRC to put the parties to notice and then decide the question as to whether
the terms on which the stay came to be granted were required to be modified.
Thus, the Writ Petition deserves to be allowed.
5. The communication dated 20 July 2026 stands quashed and set aside.
6. If the AGRC is of the view that the conditions, subject to which the stay
to the order impugned in the appeal has been granted, are required to be
varied, the AGRC shall hear the parties and pass a fresh order.
7. The Writ Petition stands disposed.
( N.J.JAMADAR, J. )
SSP 2/2
Signed by: S.S.Phadke
Designation: PS To Honourable Judge
Date: 27/08/2026 15:10:45
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