SC stops cos from selling properties in suburbs

NEW DELHI: The Supreme Court on Wednesday restrained real estate developers from selling or mortgaging properties within ‘forest land’ in Mumbai suburbs, a hub of large industrial establishments and residential complexes.

A bench headed by Chief Justice KG Balakrishnan passed the restraint orders against creating third party rights in properties at Bhandup and Mulund. It also directed Bombay High Court to expedite hearing and dispose off the matter by September.

The direction came on a batch of appeals and cross-appeals filed by certain developers, the Maharashtra government and Bombay Environmental Action Group, an NGO, challenging the Maharashtra Private Forests (Acquisition) Act 1975, which provided for vesting of private forests in the state government since August 1975.

Companies such as Oberoi Constructions, Godrej & Boyce Mfg Co, Atul Paints and Chemicals and others had challenged the Maharashtra government’s action to treat an entire belt at Bhandup and Mulund as ‘forest’.

According to them, the entire belt, measuring more than 117.6 acres, have thousands of residential buildings and factories of companies like Hoechst, Schrader Duncan, Rallis Wolf, Rallis Fan, Burroughs Welcome, Johnson & Johnson and a hospital.

The developers argued the land was never forest land but part of an industrial zone as per planning laws enacted in 1950s. They contended that the state government’s circular dated July 14, 2005 to stop mutation entries by the state revenue department in respect of ‘forest’ lands was arbitrary.