Mumbai, Jan 02: Several homebuyers, led by LIC employee Sheetal Kharat, marched to Azad Maidan on Friday to protest against real estate developer Housing Development and Infrastructure Ltd (HDIL), alleging that they were cheated after investing their life savings in stalled housing projects nearly 17 years ago.
Projects stalled for nearly two decades
The protestors, many of whom are now senior citizens, said they had booked homes in HDIL’s Majestic Tower project at Nahur and Whispering Tower at Mulund West between 2009 and 2010, lured by assurances that possession would be handed over by 2014. However, despite repeated promises and years of follow-up, the projects remain incomplete.
‘Double jeopardy’ for buyers
Homebuyers said they are facing “double jeopardy”—paying EMIs on stalled homes while also paying rent. Many families have reportedly suffered severe mental stress, with some elderly buyers dying while waiting for their dream homes.
“We invested everything we had when we were in our middle age. Today, we are at the fag end of our lives, without our homes and without our dreams,” said Sheetal Kharat (54), an LIC employee and one of the protestors.
Personal stories of prolonged struggle
Another homebuyer, Vasudevan, who booked a flat in Majestic Tower in 2010 soon after his marriage, said he is still paying EMIs on a housing loan without getting possession.
“I had promised my wife a home. Seventeen years later, we are still waiting. I am paying EMIs and struggling every day. We want justice,” he said.
HDIL’s financial collapse and stalled projects
HDIL, once one of India’s largest listed real estate companies, launched large residential projects in Mulund and Nahur during the real estate boom.
Around 400 flat buyers invested in Majestic Tower and nearly 450 in Whispering Tower. However, construction stalled amid financial troubles faced by the company.
Impact of PMC Bank scam
The crisis deepened in September 2019 following the exposure of the Punjab and Maharashtra Cooperative (PMC) Bank scam, where RBI found that nearly 73% of the bank’s loan book—around Rs 6,500 crore—had allegedly been lent to HDIL through regulatory violations and fraudulent accounts. Soon after, HDIL was pushed into the Corporate Insolvency Resolution Process (CIRP) in 2019 on the application of Bank of India.
Limited voting rights for homebuyers
Homebuyers said that while 18 lenders formed the Committee of Creditors (CoC), homebuyers were left with only about 12% voting rights, making it difficult for them to safeguard their interests.
After prolonged litigation before the NCLT, NCLAT and the Supreme Court, homebuyers secured a project-wise resolution order in 2020. Resolution plans submitted by Suraksha Khyati and Dosti were later approved by the CoC with the required majority.
Delays despite statutory timelines
Meanwhile, a resolution plan was placed before the NCLT in 2022, final approval has remained pending. “As per the Insolvency and Bankruptcy Code, the process should have been completed in 330 days. We are now in 2026 and still waiting,” Kharat said.
Allegations of delay and tax burden
Kharat further alleged that former HDIL directors, who are now out on bail, are filing repeated applications in the NCLT to delay the resolution process.
Adding to their woes, the Municipal Corporation of Greater Mumbai (MCGM) has allegedly demanded property tax based on an FSI of 5, even though construction is incomplete, which homebuyers claim is contrary to Supreme Court orders permitting tax assessment only on FSI 1.
Demands raised by protestors
At the protest, homebuyers demanded faster disposal of their case by the NCLT, strict implementation of Supreme Court orders by the MCGM on property tax, filing of chargesheets against HDIL’s former directors, and proactive intervention by elected representatives.
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Warning of intensified agitation
“Our fight of 17 years has become endless,” the protestors said, warning that they would continue to take to the streets until they get possession of their homes. “We shall not stop now. We will reach till Delhi to seek justice. Whether if needed, each of the protestors will not hesitate to go on hunger strike, if we do not get justice,” Kharat said.
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