Educated Risk Investments 165 (Pty) Ltd and Others v Ekurhuleni Metropolitan Municipality and Others

An informal settlement (Payneville Extension 3) near Springs was located in hazardous conditions. The Ekurhuleni Metropolitan Municipality, in fulfilment of its constitutional and statutory housing obligations, planned to relocate residents temporarily to Payneville Extension 1, an approved township zoned Residential 1, by allowing families to erect informal dwellings on subdivided erven. The appellants, property developers owning neighbouring land, objected and sought to interdict the municipality, arguing that the subdivision and proposed informal housing were unlawful, inconsistent with the zoning scheme, amounted to rezoning by stealth, and that occupation was impermissible until all township establishment and subdivision conditions were fulfilled.

The appeal was dismissed with costs. The High Court’s dismissal of the application was upheld, and Ekurhuleni was entitled to proceed with its planned relocation and development.

The case is significant for affirming a constitutionally informed approach to the interpretation of town planning schemes, recognising informal housing as legitimate 'dwelling houses'. It supports incremental housing development by municipalities and balances land-use regulation with socio-economic rights, particularly the right of access to adequate housing.