Mumbai, October 15, 2026: The Bombay High Court has directed the Enforcement Directorate (ED) to issue a no-objection certificate (NOC) for the redevelopment of a 44-year-old cooperative housing society in Mumbai, despite one of its flats being attached in a money laundering case.
The court refused to direct the society to furnish a bank guarantee, observing that such a requirement would impose an unnecessary financial burden when the developer and redevelopment terms were yet to be finalised.
A bench headed by Justice Bharati Dangre passed the order on October 13 on a petition filed by Antaral Cooperative Housing Society, which has 10 flats and 12 members.
ED Had Attached Flat In 2013
ED advocate Ashish Mehta said that Flat No. 4 was attached by the ED in 2013 on the allegation that it had been purchased using the proceeds of money laundering.
The attachment was subsequently confirmed under the Prevention of Money Laundering Act (PMLA) and remains in force. Proceedings are pending before a special PMLA court in Ranchi, Mehta added.
The society approached the High Court after the ED rejected its request for an NOC in September 2025, stating that the flat was attached and in the custody of the special court.
The society submitted that its building had become unsafe and unsuitable for occupation due to its deteriorating condition and lack of modern safety facilities and a lift. Several members are senior citizens. It argued that redevelopment could not proceed if the attached flat had to remain intact.
The society clarified that it was not challenging the attachment or the ED’s possession but was only seeking permission to redevelop the building while preserving the agency’s rights over the replacement flat.
Replacement Flat And Monetary Benefits To Remain Protected
Under the safeguards offered, the new flat allotted in place of Flat No. 4 will remain attached and be handed over to the ED after redevelopment. All monetary benefits, including transit rent, compensation and other payments arising from the flat, will be deposited in a separate account designated by the agency.
The bench said the society’s undertakings “sufficiently protects the interest of ED”. It directed the society and the developer to involve the agency in drafting the development agreement and permanent alternate accommodation agreement, with the documents to be vetted by the ED in relation to the attached flat.
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Court Rejects Demand For Bank Guarantee
Rejecting the demand for a bank guarantee, the court noted that only one flat was attached and said it did not intend to put the society under financial pressure.
The court directed the ED to issue the NOC within six weeks, subject to compliance with the society’s undertakings. It also directed the agency to place the affidavit and order before the special PMLA court in Ranchi.
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