'Homebuyers' Wait Cannot Be Indefinite': Bombay HC Flags Developers' Delays In Redevelopment Projects

Mumbai, November 3, 2026: The Bombay High Court has stressed that developers cannot delay housing redevelopment projects indefinitely, saying they have a legal responsibility to hand over homes to residents within a reasonable time.

The observation came while dismissing a writ petition filed by Om Shanti Properties and its partners challenging the Brihanmumbai Municipal Corporation’s (BMC) decision to terminate its Letter of Intent (LOI) as developer for a housing society in Kalachowki, Chinchpokli, where 181 members have been waiting for redeveloped homes for nearly 18 years.

A bench of Chief Justice MC Tripathi and Justice Advait Sethna, in an order pronounced on October 26, 2026, held that builders have a “huge responsibility cast upon them in law” to ensure the timely delivery of flats under redevelopment schemes.

Court Flags Impact Of Prolonged Delays

The court observed that prolonged delays worsen the plight of residents and defeat the intent of municipal regulations.

“Inordinate delays in this regard, does not only augment the plight of the tenants/flat owners/occupiers/beneficiaries of a redevelopment scheme, but also defeats the purpose which the statute/law in this regard intends to achieve,” the bench noted, adding that such inaction invariably leads to a slugfest of prolonged litigation.

Highlighting the emotional weight of homeownership in the city, the court cited the saying, “Home is where the Heart is,” observing that a house in Mumbai represents not just hard-earned money but also the hopes, feelings, and sentiments of residents in their "dream city".

Redevelopment Project Dating Back To 2008

The subject property—bearing CS No. 761 in Mazgaon Division (Sanaswadi, Kalachowki)—comprises the Sanas Building, two joint buildings ('A' and 'B'), a chawl, garages, and religious structures governed under Regulation 33(7) of the Development Control Regulations (DCR), 1991.

The BMC had initially issued an LOI on April 10, 2008, to the erstwhile partners of Om Shanti Properties. Following years of inaction, the BMC issued a show-cause notice in 2017 and terminated the LOI in July 2018.

Developer Failed To Meet Project Commitments

In late 2018, new partners (Bharat Chhaganlal Jain and Kishore Chhaganlal Jain) took over the firm, paid Rs 27.68 crore in capital value, and obtained a revalidated LOI.

On December 3, 2020, the petitioners submitted a formal undertaking stipulating that failure to complete the project within the revalidated period (up to April 9, 2022) would lead to automatic termination.

Despite obtaining an Intimation of Disapproval (IOD) in April 2021, the developer failed to secure a Commencement Certificate (CC), provide transit rent, or execute physical work on site.

The BMC issued a fresh show-cause notice on April 27, 2023, culminating in the final termination notice on February 11, 2025.

Court Allows Residents To Change Developer

Dismissing arguments alleging a breach of natural justice, the bench noted that the developer suppressed their binding 2020 undertaking and ongoing arbitration proceedings.

Also Watch:

The court further noted that the Parijat Co-operative Housing Society had terminated its agreement with the petitioner on December 30, 2025, and appointed a new developer, Tribecca Creators LLP, on September 8, 2026.

The bench ruled that residents “cannot be compelled to continue” with an erring developer indefinitely.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/