Appellants vs. Government: Slum Rehabilitation Premium Dispute

The case between Appellants and the Government revolves around a dispute over premium payment in the Slum Rehabilitation Scheme. Appellant No. 2, in association with a society represented by Appellant No. 1, sought to develop a plot under the scheme. Despite a Letter of Intent issued, a demand by the Government led to legal action. The High Court’s decision, followed by a review petition, sets the stage for a complex legal battle over the premium issue.


  • Appellant No. 2 was approached by Appellant No. 1 society to develop a plot and rehabilitate members under Slum Rehabilitation Scheme.
  • A Letter of Intent (LOI) was issued in favor of Appellant No. 2 for the rehabilitation scheme, subject to clearance by Coastal Regulation Zone (CRZ) authorities.
  • Government issued a notification demanding Rs. 8,47,69,029.69 towards premium, leading appellants to approach High Court through a writ petition.
  • The High Court dismissed the writ petition challenging the demand and subsequent review petition.
  • Directives by the Government required a 25% premium payment for the Slum Rehabilitation Scheme.
  • Appellants sought directions for the issuance of Commencement Certificate from SRA.
  • Civil appeals were filed by the original petitioners in response to the High Court’s orders.
  • HPC rejected the appellants’ claim of not needing to pay the premium due to the LOI issued earlier.
  • The writ petition filed by the appellants was dismissed by the High Court of Judicature at Bombay on 03.05.2012.
  • The review petition filed by the appellants was also dismissed on 01.07.2015.

Also Read: Interpretation of Will Clauses in Property Dispute


  • The title of regulation No. 1.11 of Appendix IV of Regulation 33(10) is to be changed as “Premium for ownership and terms of lease”.
  • A new provision is added stating that Developers/Co-op. Housing Society shall pay a premium of twenty-five percent in terms of Ready Reckoner for Slum Rehabilitation Schemes on lands owned by Government, Semi-Government Undertakings, and Local Bodies.
  • The appellants cannot be prejudiced by the delay in clearance by the Coastal Zone Management Authority for payment of premium as per directions issued on 16th April 2008.

Also Read: Preservation of Open Spaces in Development Plans


  • The Letter of Intent dated 05.01.2005 was issued to the appellants under Development Control Regulation 33(10) for the scheme.
  • The LOI is valid until completion of the estimated project period if obtained for any one building of the project.
  • Confirmation from the Government regarding the imaginary line from CRZ point of view must be obtained before seeking approval of plans.
  • If required, the scheme shall be revised accordingly based on the confirmation from the Government.
  • The Letter of Intent was issued on 05.01.2005 and was valid for three months only.
  • The validity of the Letter of Intent was not extended, and no representation was filed to keep it alive.
  • Conditions notified in the GR dated 16.04.2008 will apply for the scheme.
  • The delay in obtaining clearance from the Coastal Zone Management Authority does not excuse the appellants from keeping the Letter of Intent alive.
  • The appellants could have made appropriate representations to maintain the validity of the Letter of Intent.

Also Read: Jurisdictional Limits and Statutory Compliance in Development Planning


  • Developer/co-operative society required to pay premium @ 25% in terms of Ready Reckoner for Slum Rehabilitation Schemes on government-owned lands
  • No illegality found in the demand made by the respondents
  • Civil appeals dismissed due to lack of merit
  • No order as to costs given


Case Number: C.A. No.-000887-000888 / 2020

Click here to read/download original judgement

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