The Bombay High Court has directed the Enforcement Directorate (ED) to issue a no-objection certificate (NOC) within six weeks for the redevelopment of a 44-year-old cooperative housing society in Mumbai, despite one of its flats being attached in a money laundering investigation.
A bench led by Justice Bharati Dangre passed the order on October 13, hearing a petition filed by Antaral Cooperative Housing Society, which comprises 10 flats and 12 members. The court declined to require the society to provide a bank guarantee, observing that doing so would create an unnecessary financial burden before a developer and redevelopment terms had been finalised.
The ED had attached Flat No. 4 in 2013 over allegations that it was purchased using proceeds of money laundering. The attachment was subsequently confirmed under the Prevention of Money Laundering Act (PMLA) and remains in force. Proceedings concerning the property are pending before a special PMLA court in Ranchi.
The society approached the High Court after the ED rejected its NOC application in September 2025, citing the attachment and the flat’s custody under the special court.
According to the society, the building has deteriorated significantly and lacks essential modern safety facilities and a lift. Several residents are senior citizens, making the redevelopment increasingly urgent. The society clarified that it was not challenging the attachment or the ED’s rights, but wanted to proceed with redevelopment while preserving the agency’s interests.
Under the proposed safeguards, the replacement flat allotted for the attached property will remain attached and be handed over to the ED after the project is completed. Any financial benefits linked to the flat, including transit rent, compensation and other payments, will be deposited into a separate account designated by the agency.
The bench observed that the society’s undertakings “sufficiently protects the interest of ED”.
The court also directed the society and the developer to involve the ED in preparing the development agreement and permanent alternate accommodation agreement. The documents must be vetted by the agency concerning the attached flat.
Rejecting the bank-guarantee demand, the court noted that only one flat was attached and said it did not intend to impose additional financial pressure on the society.
The ED must issue the NOC within six weeks, subject to compliance with the safeguards. The agency has also been directed to submit the affidavit and court order before the special PMLA court in Ranchi.
Source: The Free Press Journal
