The Bombay High Court has ordered a developer to hand over a stalled redevelopment site in Mulund to the concerned housing society, offering relief to residents who have been displaced for more than five years. The court also appointed a receiver to take control of the property and permitted the society to appoint a new developer. The builder’s request for a stay on the ruling was declined.
In an order dated February 16, Justice Somasekhar Sundaresan directed M/s Alag Property and Constructions Pvt Ltd to transfer “peaceful possession” of the redevelopment land to The Mulund Endeavour CHS Ltd. The direction was issued while allowing the society’s petition under Section 9 of the Arbitration and Conciliation Act, seeking interim safeguards pending arbitration between the parties.
The dispute relates to redevelopment of a 4,182 sq m plot in Mulund East comprising four residential buildings. The development agreement was signed in July 2016, and residents vacated their flats in January 2020. The society contended that despite nearly nine years since the agreement, only about 30% of construction had been completed, even though the extended deadline expired in January 2025.
It further alleged that transit rent, brokerage, transport charges and hardship compensation had not been paid since January 2023, with outstanding dues amounting to Rs 9.77 crore. Municipal tax arrears exceeding Rs 1.13 crore were also cited.
The developer argued that 40–45% of the work had been executed and attributed delays to Covid, environmental constraints and negotiations. It also claimed third-party rights had been created in respect of sale flats.
After reviewing submissions, the court observed, “In a nutshell, what is writ large on the face of the record is that the developer is seriously in default in the time and cost commitments owed under the development agreement,” and held the project was significantly behind schedule.
The court authorised the receiver to take possession, with police assistance if required, and hand over control to the society, which may now appoint a new developer or pursue self-redevelopment. Interim protections will remain until an arbitral tribunal is constituted.
Source: The Free Press Journal
