Mumbai: The Bombay High Court has restrained Lakdawala Developers Pvt Ltd from creating third-party rights in two redeveloped buildings in Nagpada, after a group of tenants alleged that the developer had sold the tenements meant for them and stopped paying rent since January 2023.
A bench of Justices Girish Kulkarni and Aarti Sathe passed the order on October 1, while hearing a petition filed by tenant Shobha Shantaram Sonawanekar and others.
Petition Filed by Tenants
The petitioners sought directions to the State government and the Mumbai Building Repairs and Reconstruction Board (MBRRB) of MHADA to implement action under Section 91A of the Maharashtra Housing and Area Development (MHAD) Act, 1976 and to cancel the developer’s NOC.
Legal Provisions Invoked
Section 91(A) of the MHAD Act, as amended, empowers the MHADA to acquire and complete the redevelopment of old and dilapidated cessed buildings that have been stalled for more than three years by their owners or developers.
The petition named the State of Maharashtra, the Chief Officer of MBRRB–MHADA, and Lakdawala Developers Pvt Ltd as respondents.
NOC Cancellation Highlighted
Advocates Asim Naphade, Sahil Salvi and Omar Shaikh, representing the petitioners, brought to the court’s notice that the NOC granted to Lakdawala Developers had already been cancelled by MHADA on December 12, 2024.
Court Observations
The bench noted that the cancellation order had not been challenged in any substantive proceedings. “In this view of the matter, respondent no.3 (developer) is precluded from creating any third-party rights whatsoever. Accordingly, respondent no.3 shall not create any third party rights as respondent no.3 is no more the NOC holder,” the bench said.
Developer’s Representation
Advocates Nadim M. and Rajendra Rathod, who appeared for the developer, informed the bench that they have no instructions from their client.
State Government Direction
The bench clarified that if the developer was aggrieved by the cancellation of the NOC, it was free to pursue appropriate legal remedies. The judges further directed the State government to decide, within two months, MHADA’s pending proposal under Section 91(A) of the MHAD Act for acquisition of the project. The petition was accordingly disposed of, with the court refraining from commenting on the project’s current status or stage of completion.
Tenant Allegations
According to the tenants, the two redeveloped buildings—Devji Dharshi Building and Zohra Mansion—located at 4th Peer Khan Street, Nagpada, were demolished in 2010 for redevelopment under DCR 33(7). The tenants were promised ownership flats in the new building, Lakdawala Garden.
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Developer’s Breach of Promise
Advocate Shaikh contended that the developer stopped paying rent from January 2023. It was only then the tenants discovered that the developer had allegedly altered the sanctioned plans and sold their allotted flats to third parties, including one flat sold for Rs 2.67 crore despite the building lacking an occupation certificate. Advocates Sayali Apte and P.G. Lad represented MHADA.
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