In a major development in Mumbai’s Slum Rehabilitation landscape, an arbitral tribunal has delivered a decisive ruling in the long-pending Sai Nagar SRA redevelopment dispute in Bhandup. The verdict not only directs the housing society to hand over the land to the developer but also grants significant financial compensation for prolonged delays.
Here’s a detailed breakdown of what happened and why this ruling matters. 👇
🏛️ Tribunal Rules In Favour Of Developer
The arbitral tribunal headed by former judge Justice A B Chaudhari ruled against Sai Nagar SRA Co-operative Housing Society and directed it to hand over redevelopment land to Chourangi Developers Pvt Ltd.
The tribunal observed that the redevelopment project had been stalled for far too long and that contractual obligations must be honoured.
📍 Project Stuck For Over 10 Years In Bhandup
The redevelopment project in Bhandup (East) involved around 660 hutment dwellers under the Slum Rehabilitation Scheme. Although the development agreement was signed in 2008, the project failed to move forward for over a decade due to disputes and non-delivery of vacant possession.
Such prolonged delays significantly impacted both the developer and the intended beneficiaries of the scheme.
📝 Agreement Signed, But Possession Not Given
After the land was declared a slum and approvals were obtained from the Slum Rehabilitation Authority (SRA), a formal development agreement and consent terms were executed in 2008.
However, despite these approvals and legal agreements, the society did not provide vacant and peaceful possession of the land — a key requirement for redevelopment to begin.
⚔️ Opposition From Dissenting Members
A faction of residents formed an unregistered body called Sai Nagar Bachao Samiti and filed multiple legal proceedings challenging the redevelopment.
Although there was no official stay order, the continuous litigation created hurdles and contributed heavily to the delay of the project.
🚫 Tribunal Rejects Society’s Defence
The society argued that delays were beyond its control and were caused by dissenting members.
However, the tribunal clearly stated that it is the society’s responsibility to ensure delivery of possession. Internal disputes and objections cannot justify indefinite postponement of a legally binding redevelopment agreement.
This observation became a crucial turning point in the case.
💰 ₹50.79 Crore Compensation Awarded
In a significant financial blow to the society, the tribunal awarded ₹50.79 crore to the developer for escalation costs and losses caused by the prolonged delay.
Additionally, the tribunal granted 10% annual interest from August 31, 2025, further strengthening the developer’s claim for compensation.
This highlights how costly redevelopment delays can become when contractual timelines are not respected.
⏳ Six-Week Deadline & Police Assistance Allowed
The tribunal directed the society and dissenting members to hand over peaceful possession within six weeks.
Importantly, the developer has been granted the right to seek police assistance if required to enforce the order — signaling the seriousness of the ruling and its enforceability.
⚖️ Arbitral Tribunal Orders Sai Nagar SRA Society To Hand Over Land, Awards ₹50.79 Crore Over Project Delays 🏗️