Mumbai, Jan 24: The Bombay High Court has refused to stall the redevelopment of municipal tenanted land in Lower Parel, observing that residents living in dilapidated, 75-year-old structures cannot be made to wait indefinitely while a developer “uses the project only for the purpose of securing profits”.
Petition by developer dismissed
Justice Sandeep Marne, on January 23, dismissed a petition filed by ISON Builders LLP seeking interim relief against the termination of its development agreement by Om Sai Ram Cooperative Housing Society (Proposed).
Background of the dispute
The case concerns land owned by the Brihanmumbai Municipal Corporation (BMC) at Lower Parel (West), on which 28 municipal tenants have been residing in ageing structures since the early 1950s.
In 2014, the tenants formed a proposed cooperative housing society and appointed ISON Builders as the developer to redevelop the property under Regulation 33(7) of the Development Control Regulations.
More than a decade later, redevelopment has not even commenced. In September 2025, the society terminated the developer’s appointment, citing prolonged delays, and appointed a new developer.
ISON Builders challenged the termination, blaming the BMC and tenants for delays in inventory, tenancy and consent verification, and alleged malafides behind the society’s decision.
Court finds delays attributable to developer
Rejecting these claims, the court held that key delays were attributable to the developer itself. It noted that although tenancy verification was completed by March 2021, the developer failed for nearly two years to submit documents demonstrating its financial capacity, forcing the BMC to close and later revive the proposal.
“What could have been done within a matter of a few months has not been done for over four and a half years,” the court observed.
Tenants’ rights outweigh commercial interests
Justice Marne emphasised that the tenants’ right to redevelopment outweighed the developer’s commercial interests. “Respondent No. 1 (proposed society) and its members cannot be made to wait endlessly for the petitioner to take necessary steps in the redevelopment process,” the court said.
The court also took note of minutes showing that the developer had been negotiating to transfer the project to another developer, holding that this indicated an intent to “profiteer at the cost of the members of the society”.
Arbitration to decide claims
“In my view, no interim measures deserve to be granted in its favour,” the court held, allowing the society and the BMC to proceed with redevelopment through another developer.
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However, since both sides agreed to arbitration, the court appointed Justice Anuja Prabhudesai as the sole arbitrator, clarifying that its observations were only prima facie and would not affect the final adjudication of claims.
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