Mumbai: More than 250 families who have paid the entire cost of their homes in the Vijayadurga Vista housing project in Taloja have been waiting for possession for nearly a year, following an interim stay order issued by the court in a case involving alleged incorrect implementation of income eligibility criteria under the Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0). The distressed homebuyers have warned of an intense agitation if the issue is not resolved soon.
PMAY Eligibility Criteria Challenged
Under the ‘My Preferred CIDCO Home’ scheme announced by CIDCO in October 2024, beneficiaries were expected to be selected in accordance with the eligibility criteria prescribed under the Pradhan Mantri Awas Yojana. However, some citizens approached the Bombay High Court, alleging that the annual income ceiling of Rs 6 lakh had not been properly implemented and that ineligible applicants had also been allowed to participate in the scheme.
The court's interim stay has left more than 250 families unable to take possession of their homes despite having paid lakhs of rupees towards their purchase.
Bombay HC Restricts Allotments
On March 25, 2026, a division bench of Justice Ravindra V. Ghuge and Justice Abhay Mantri took serious note of the matter and made strong observations regarding CIDCO's actions. While granting an interim stay on the sale of homes under the scheme, the court directed that only eligible citizens with an annual income below Rs 6 lakh be considered and strictly prohibited the handing over of possession to ineligible beneficiaries. Consequently, CIDCO halted the allotment process for 250 families in the Vijayadurga Vista housing project in Sector 37 of the Taloja node.
The beneficiaries were allotted homes in the October 2024 lottery and paid approximately Rs 33 lakh each to CIDCO. Notably, the buildings concerned received their full occupancy certificates in November 2025. However, the dispute over income limits and eligibility criteria has left the possession process entangled in litigation, forcing more than 250 beneficiaries to wait for their homes.
Homebuyers Face Double Financial Burden
The homebuyers have questioned why ordinary families should suffer despite having no role in the dispute over eligibility criteria. Many beneficiaries who took home loans are required to pay thousands of rupees in monthly instalments while continuing to pay rent for their existing accommodation, resulting in a double financial burden.
“The financial calculations of these families have been thrown into disarray, as they have to pay both loan instalments and house rent,” said homebuyers Abhijit Hande.
The Vijayadurga Vista Distressed Beneficiaries Committee has urged CIDCO to obtain clarity from the court on the income ceiling and eligibility criteria at the earliest and hand over possession to eligible beneficiaries without further delay. The committee has warned of an intense agitation if the matter remains unresolved.
When contacted, CIDCO officials said the allotment of the homes had been halted in compliance with the court's interim stay order. CIDCO has placed the facts of the matter before the court through an affidavit. The officials added that the next hearing in the case is scheduled for October 16 before the Bombay High Court.
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