Supreme Court clarifies "weaker sections" definition, mandates guidelines for identification & monitoring housing schemes

The Supreme Court upheld the High Court's dismissal of the writ petition due to changed government policy. The Court emphasized the importance of clear definitions for "weaker sections of society" and directed the Central Government to prescribe guidelines for their identification. It also proposed the formation of committees to monitor housing schemes and ensure compliance with exemption order conditions. The Court's directions were initially limited to Maharashtra but could be extended to other states.

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Issues Involved:
1. Legality of the High Court's dismissal of the writ petition.
2. Legality of the High Court's directions for future monitoring of the scheme.
3. Compliance with the conditions imposed in the order of exemption.
4. Legitimacy of the escalation of construction costs.
5. Definition and identification of "weaker sections of the society."
6. Implementation and monitoring of housing schemes for weaker sections.

Summary:

1. Legality of the High Court's Dismissal of the Writ Petition:
The High Court dismissed the writ petition as infructuous due to changed government policy and resolutions. The respondents' application for amendment was also rejected by the High Court.

2. Legality of the High Court's Directions for Future Monitoring of the Scheme:
The High Court proposed directions for future monitoring of the scheme, which were challenged by the builder in this appeal by special leave. The Supreme Court noted that the High Court did not examine the factual aspects involved in the dispute but proceeded to lay down guidelines.

3. Compliance with the Conditions Imposed in the Order of Exemption:
The respondents contended that the builder violated the conditions imposed in the exemption order, particularly concerning the needs of the weaker sections of society. They alleged that the legislative purpose of the exemption was not being met and that a racket had formed to eliminate economically weaker sections and make unauthorized profits.

4. Legitimacy of the Escalation of Construction Costs:
The respondents challenged the sanction of escalation following the builder's demand, alleging that the escalation was excessive and not warranted. The Supreme Court noted that the High Court did not examine these factual disputes.

5. Definition and Identification of "Weaker Sections of the Society":
The Supreme Court emphasized the need for a clear definition of "weaker sections of the society" to ensure proper implementation of the Act. It noted that members of Scheduled Castes and Scheduled Tribes are generally accepted as belonging to weaker sections but acknowledged the need for a broader guideline.

6. Implementation and Monitoring of Housing Schemes for Weaker Sections:
The Supreme Court directed that allotment should be on the basis of "one family - one flat" and that the family should include husband, wife, and dependent children. It also emphasized the need for a means test to identify weaker sections, suggesting an income limit of Rs. 18,000 per annum. The Court proposed the formation of a committee in every urban agglomeration to oversee the implementation of schemes, consisting of a competent authority, a judicial officer, and a government engineer.

Conclusion:
The Supreme Court directed the Central Government to prescribe guidelines for identifying weaker sections of society and emphasized the need for effective monitoring of housing schemes. The Court also proposed the formation of committees to ensure proper implementation and compliance with the conditions of exemption orders. The directions were initially confined to the State of Maharashtra, with liberty given to extend the Code to other states.

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