Mumbai, March 12: Observing that nearly Rs 18 crore of public funds have already been spent on transit rent due to delays in the Siddharth Nagar (known as Patra Chawl) redevelopment in Goregaon (East), the Bombay High Court has allowed Maharashtra Housing and Area Development Authority (MHADA) to stop paying transit rent from April 2026. The court also warned that obstruction to officials handing over ready rehabilitation flats could invite criminal action.
Court allows MHADA to stop transit rent
A bench of Justices Girish Kulkarni and Aarti Sathe, on Wednesday, permitted the housing authority to stop payment of transit rent, observing that the rehabilitation buildings are complete and ready for occupation.
The court was hearing a petition filed by Goregaon Siddharth Nagar Sahakari Griha Nirman Sanstha Limited concerning redevelopment of the Siddharth Nagar project.
Resistance faced during possession process
MHADA’s advocate Manisha Jagtap informed the court that despite an earlier order permitting it to proceed with the execution of Permanent Alternate Accommodation Agreements (PAAA) and hand over possession to occupants willing to accept their tenements, officials and the contractor had faced resistance while attempting to access the premises.
Advocate Mahesh Londhe for contractor Relcon Infraproject said a non-cognisable complaint had been lodged with the local police station regarding the alleged obstruction.
Buildings declared structurally sound
Referring to its order dated February 23, 2026, the bench noted that an interim structural report prepared by experts from Veermata Jijabai Technological Institute (VJTI) had already concluded that Buildings 1 to 8, comprising 16 wings, were “structurally sound, stable and fit for habitation”.
The court warned that any attempt by the managing committee or members of the petitioner society to prevent officials or contractors from entering the premises or handing over possession would be treated seriously.
“Any action… preventing entry or remaining on the premises and/or preventing any person to take possession of his/her tenement… would amount to not only an offence but also restraining the MHADA officials from performing their official duties,” the bench said.
Court notes Rs 18 crore spent on transit rent
MHADA submitted that some society members were delaying the process while continuing to receive transit rent, even though the premises were ready for occupation. Accepting the submission, the court said there was “substance” in MHADA’s contention that members could not indefinitely delay taking possession while raising repeated objections.
“There is already a delay of more than one year which has caused the State exchequer an expenditure of Rs 18 crore on account of payment of transit rent,” the court noted.
The bench said society members must adopt a “reasonable and fair approach” and cooperate with authorities to ensure progress.
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Court directs meeting to finalise agreements
It also directed that a meeting to finalise the PAAA agreements be held at MHADA’s office. To oversee the process, the court directed the Registrar (Original Side) to nominate a court officer as an observer who may seek police assistance if required. The matter has been posted for further hearing on March 25.
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