The Bombay High Court has directed the Mumbai Metropolitan Region Development Authority to refund Rs 646 crore to Reliance Industries Limited in a dispute linked to a large commercial and convention project in Bandra Kurla Complex.
In its ruling, the court set aside two demand notices issued by MMRDA, including the Rs 646 crore recovery and an additional claim of Rs 1,116 crore. It was observed that the recovery process was arbitrary and lacked proper legal justification. The court also noted that the action appeared to have been influenced by the possibility of lease termination, which had implications for the company’s operations.
Reliance Industries had been allotted the plot in 2006 for developing a convention-cum-commercial complex along with supporting infrastructure. Given the scale of the project, construction was planned in phases within a defined timeline. However, delays led to disputes between the developer and the authority, with penalties imposed by MMRDA becoming a point of contention.
The court pointed out that in comparable agreements executed after 2015, MMRDA had provided a six-year extension period for project completion. It held that the same benefit should have been applied consistently, and failure to do so in this case resulted in unequal treatment.
MMRDA defended its actions by citing the original lease conditions and approvals related to the increased built-up area. However, the court rejected these arguments, stating that the additional charges and penalties could not be legally sustained.
The judgment further emphasised that the demand notices and recovery measures did not meet standards of fair administrative practice. As a result, the court ordered MMRDA to refund the Rs 646 crore within 90 days, with interest applicable in case of any delay.
The decision comes amid ongoing legal scrutiny of lease terms, project delays, and extension policies in Mumbai’s infrastructure and real estate sector.
Source: Prop News Time
