The Bombay High Court has refused to relax the interim stay on the allotment of nearly 25,000 CIDCO flats in Navi Mumbai under the Pradhan Mantri Awas Yojana (Urban) 2.0, or PMAY-U 2.0.

Court raises concerns:

A Division Bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad said it had serious concerns about the way the housing scheme was designed. The Court said the main question was whether a welfare scheme meant to help economically weaker people, was being implemented in its true spirit.

Why the case began:

The case concerns about 25,000 flats built by CIDCO under PMAY-U 2.0. In March this year, the High Court stayed the allotment process. It had objected to the eligibility rules, especially because people earning more than ₹6 lakh a year could apply for flats meant for the Lower Income Group (LIG). At that time, the Court called this a “mockery of the poor” and said it was like making “a bicycle owner compete with a Mercedes owner.”

CIDCO explains flats:

The Maharashtra Advocate General (AG) Dr. Milind Sathe, representing CIDCO, said that all 25,000 flats were not meant only for the LIG category. He said around 15,000 flats were reserved for the Economically Weaker Section (EWS), while the remaining 10,000 flats were open to people outside the EWS category.

Who can apply?:

This explanation led to more questions from the Bench. Acting Chief Justice Ghuge asked, “We both (Judges) can also apply?” Dr. Sathe replied yes. The Court then asked, “But these are houses under the Pradhan Mantri Awas Yojana, right?” After receiving another yes, the Acting Chief Justice remarked: “Houses under the PMAY for super rich people? Seriously?”

CIDCO defends scheme:

The Advocate General defended the scheme by saying that the prices and categories of flats were clearly mentioned before people applied. He said applicants had different options for the size and price of flats, so they could not later say that the cost was unexpected.

Lottery questioned:

However, the Court was not satisfied. It asked why CIDCO used a lottery system instead of an auction when there was no effective upper income limit for applicants. Dr. Sathe replied that PMAY flats cannot be auctioned. They must be sold at fixed prices.

Court questions purpose:

The Court then questioned the purpose of the scheme. Acting Chief Justice Ghuge asked, “Then what does the PMAY scheme say?” When Dr. Sathe replied that the scheme required flats to be sold at fixed rates, the Court said:

“Then to whom? To rich people or to poor people? Nowhere we have seen such a scheme except in Navi Mumbai... Do you want us to test if this scheme applies to Navi Mumbai? It shocks our conscience... CIDCO builds houses under PM Awas Yojana which are meant for people not having any shed on their head...as per CIDCO anyone who doesn't have a pucca house in Navi Mumbai and has income over Rs 6 lakh per year can apply which means that even Judges, the AG and anybody can apply.”

Final hearing next:

The Bench also asked Advocate Abhinav Chandrachud, appearing for the petitioner, to file his written submissions before the next hearing date. At the same time, the Advocate General asked the Court to allow CIDCO to continue the allotment process while the case was pending.

Stay will continue:

The Court refused this request. Acting Chief Justice Ghuge said the Court would first hear final arguments and then decide whether the scheme was legal. The Bench said:

“We will now hear the final arguments and decide the matter finally. Till then the stay continues.”

Therefore, the stay on allotment of the CIDCO flats will continue until the Bombay High Court gives its final decision.

Case Details: Abheeshek Shashikant Israji v/s State of Maharashtra