At least 47 residents of Kailash Prabhat Cooperative Housing Society in Santacruz East have approached the Bombay High Court and the City Civil Court, alleging that they have been left without transit rent and permanent rehabilitation agreements following the demolition of their buildings for redevelopment. The residents are seeking recovery of Rs 4.76 crore in outstanding payments from the developer.
The dispute comes nearly three years after the Brihanmumbai Municipal Corporation (BMC) declared the society’s buildings dangerous and dilapidated, and more than two years after all seven buildings were demolished. The society comprises 122 residential flats and ten shops.
According to petitioner Moiz Shaikh, the BMC classified the buildings under the C-1 category in February 2023. Subsequently, around 45 residents vacated their homes in May 2023, trusting the appointed developer, Galaxy Developers, and the society’s managing committee.
However, Shaikh alleged that the developer initially provided rent only to committee members and their relatives, leaving several other residents without financial support. He also questioned the developer’s financial preparedness and its decision to involve another development partner.
The residents have challenged the BMC’s approval of the redevelopment under Regulation 33(7)(B) of the Development Control and Promotion Regulations (DCPR), 2034. They argue that the project should have been processed under Regulation 33(7)(A), considering the buildings’ C-1 classification.
Parvez Abdul Majeed, another petitioner who relocated to Panvel after demolition, said, “A second builder was brought in through a partnership, but he too did not pay us the rent or corpus. The building was forcibly declared C-1 and there is no Permanent Alternate Accommodation Agreement either. At least 47 residents like me are stranded without rent or a development agreement.”
The petitioners estimate unpaid transit rent at Rs 2.71 crore, with total outstanding dues, including corpus, shifting expenses, brokerage and interest, reaching Rs 4.76 crore up to July 2026.
They have sought payment with 18% annual interest, continued monthly rent until rehabilitation and registered Permanent Alternate Accommodation Agreements. They have also urged the court to restrain the BMC from granting further redevelopment permissions until the dues are cleared. Galaxy Developers was unavailable for comment.
Source: Hindustan Times
