The Bombay High Court has backed the Brihanmumbai Municipal Corporation’s (BMC) decision to terminate a developer’s appointment over an unfinished housing redevelopment project in Kalachowki, Chinchpokli, where 181 residents have been waiting for their homes for nearly 18 years.
The civic body issued a Letter of Intent (LOI) to the developer in April 2008, but cancelled it in February 2025 after prolonged delays. Om Shanti Properties challenged the termination, but the High Court dismissed its plea on October 26.
A bench comprising Chief Justice Mahesh Chandra Tripathi and Justice Advait Sethna stressed that developers have a “huge responsibility cast upon them in law to ensure that their obligation in terms of handing over possession of the flats through redevelopment scheme is done in a timely manner”.
The court warned that prolonged delays worsen the difficulties faced by residents and undermine the purpose of redevelopment legislation. It observed that such situations often lead to extended legal disputes over housing rights.
Justice Sethna also highlighted the emotional and financial importance of owning a home in Mumbai. “We are reminded of the famous adage, ‘Home is where the Heart is.’ Mumbaikars, in their dream city of Mumbai, have immense hope and aspirations in regard to their dwelling house, which may manifest itself by way of a flat, apartment, etc. Besides the hard earned money that is put in for a house in Mumbai, there is an investment of emotions, feelings and sentiments attached to having a home in their city of dreams, which cannot be procrastinated,” he observed.
The redevelopment was initially awarded in 2008. After an earlier termination in 2018, the present developers were reinstated. However, no substantial progress followed a development agreement signed in June 2024. The BMC subsequently issued a termination notice in February 2025, and the society decided in September 2026 to appoint a new developer.
The court rejected allegations of delays by the civic body and society, stating that the residents “cannot be compelled to continue with the petitioner as a developer”. It added that “the redevelopment ought to be completed within time, which is of essence and this ought not to be procrastinated indefinitely, on some pretext or the other”.
The ruling follows other interventions protecting homebuyers. On October 23, the High Court directed Victoria Enterprises to pay interest on Rs 5.51 crore for delayed possession of units in Bandra-Kurla Complex, rejecting its force majeure argument.
In June, the court also upheld homebuyers’ entitlement to monthly delay interest under RERA in the Runwal Infinity project in Mulund, directing payment at 10.05% from February 2014 until possession.
In another case, Darshan Developers proprietor Pravin Vikkram Satra received a three-month prison sentence in September 2023 for contempt after failing to honour construction and possession commitments.
Source: The Indian Express
