Residents of an SRA property in Cuffe Parade’s Backbay Reclamation have approached the Bombay High Court, expressing concern that the redevelopment project could once again be burdened with large borrowings, similar to what they allege happened under an earlier developer.
The residents claim Wizard Infocom Pvt Ltd, appointed for the project in 2015, had raised loans of around ₹600 crore against the property, while redevelopment and rehabilitation remained incomplete. They now fear that Vensco Estates Pvt Ltd, the proposed new developer, could raise nearly ₹1,000 crore against the same land.
One resident alleged that Wizard representatives had collected documents from occupants in 2015 and promised alternate homes in Wadala. “The developer came to us in 2015 and took all our documents, telling us that within two months he would allot alternate houses in Wadala. He offered 2BHK flats and ₹20 lakh to eligible families, while those staying there but not eligible were promised 1BHK flats and ₹7 lakh. But he did not return,” the resident alleged.
The residents later claimed they learnt that the property had been pledged as security for substantial borrowings.
“Later, we came to know through a bank official that we could not do anything with our houses because the developer had already taken a loan against the land and that the property could be seized,” the resident alleged.
The project was also linked to financial proceedings involving Radius Group and businessman Sanjay Chhabria. In 2020, IDBI Trusteeship Services Ltd had initiated proceedings over unpaid debenture dues of about ₹942.5 crore. The dispute was later settled for ₹750 crore.
Vensco Estates subsequently emerged as the proposed developer, with the SRA passing an order on February 16, 2026. Residents have challenged the decision, alleging that they were not given adequate opportunity to present their objections.
They also claim Vensco is seeking financing of nearly ₹1,000 crore against the property. The residents have sought protection against any fresh mortgage or financial charge until their concerns are addressed.
The Bombay High Court has directed the Apex Grievance Redressal Committee to decide the residents’ pending appeal within 12 weeks and instructed the SRA CEO to consider their representation within eight weeks.
The dispute relates to a roughly 8,952-sq-metre property containing around 351 structures and hundreds of occupants awaiting rehabilitation.
Source: Mumbai Mirror
