The Bombay High Court has instructed the Enforcement Directorate (ED) to issue a no-objection certificate (NOC) within six weeks for the redevelopment of a 44-year-old housing society in Mumbai, after the agency’s attachment of one flat had held up the project.
In its October 13, 2026 order, the court observed that the ED’s interests could be secured through conditions covering the replacement flat and any monetary benefits arising from its redevelopment.
The matter involves Antaral Co-operative Housing Society, comprising 10 flats and 12 members. The society informed the court that its building lacked essential safety facilities and a lift, making it unsuitable for continued occupation. Several residents are senior citizens affected by the deteriorating condition of the structure.
The ED had attached Flat No. 4 in connection with an alleged money-laundering case under the Prevention of Money Laundering Act (PMLA). When the society sought permission to proceed with redevelopment, the agency rejected its request on September 2, 2025, citing the attachment and the flat’s custody with the Special Court.
The society subsequently approached the High Court, clarifying that it did not intend to challenge or remove the attachment, but wanted it transferred to the replacement flat.
To address the agency’s concerns, the society undertook to ensure that the new flat would remain attached, with the relevant details recorded in the Development Agreement and Permanent Alternate Accommodation Agreement (PAAA). It also agreed to hand over the replacement property to the ED after construction and receipt of the occupation certificate.
Additionally, transit rent, corpus payments, hardship compensation and other financial benefits linked to the flat would be deposited into a separate account designated by the agency.
The ED sought a bank guarantee to safeguard its interests. However, the court rejected this demand, stating:
“We do not agree to the suggestion that a Bank guarantee shall be furnished by the Petitioner-society, as we must note that it is only one flat in the society which is under attachment and we do not intent to put the society under a financial pressure and particularly when the Developer and the terms of development are not yet finalised,”
The court also directed the society and its appointed developer to involve the ED while preparing the redevelopment agreements and ordered the agency to issue the NOC within six weeks, subject to compliance with the society’s undertakings.
Source: Hindustan Times
