In a major relief for housing society members in Mumbai, the Bombay High Court has directed a defaulting developer to hand over a stalled redevelopment project back to the society. The ruling strengthens the rights of residents stuck in delayed redevelopment projects and sends a strong message to errant builders.
🏛️ High Court Comes Down Heavily on Developer
The Bombay High Court ordered M/s Alag Property and Constructions Pvt Ltd to hand over peaceful possession of the incomplete project to the society.
The court observed that the developer had failed to fulfill contractual obligations and had significantly delayed construction work, despite multiple opportunities and extended deadlines.
👉 This ruling makes it clear that developers cannot indefinitely delay projects without consequences.
🏢 Big Relief For The Mulund Endeavour CHS Ltd
The project involves The Mulund Endeavour CHS Ltd located in Mulund.
Society members had vacated their old homes years ago with the expectation of receiving new flats within the promised timeline. Instead, they were forced to stay in rented accommodations for an extended period.
✔️ The court’s decision now gives them control over their own redevelopment destiny.
⏳ Agreement Signed in 2016, Project Still Incomplete
The redevelopment agreement was executed in 2016, with deadlines revised multiple times — even extended till January 2025.
However, construction reportedly remained only 30–45% complete, highlighting severe delays and lack of progress.
📌 The court noted that such prolonged delays defeat the very purpose of redevelopment meant to improve living conditions.
💰 Crores in Unpaid Transit Rent & Dues
One of the most serious allegations was non-payment of transit rent and other financial commitments.
Members claimed that from 2023 onwards, payments such as:
- Transit rent
- Brokerage
- Transportation charges
- Hardship compensation
were not cleared.
The outstanding dues reportedly ran into several crores of rupees, putting tremendous financial strain on families already displaced from their homes.
⚠️ For many residents, this wasn’t just a delay — it was a financial crisis.
🧾 Court Appoints Receiver To Take Charge
Recognizing the seriousness of the situation, the High Court appointed a Court Receiver to take possession of the project site and ensure smooth transfer back to the society.
This step was crucial to:
✔️ Prevent further misuse of the property
✔️ Protect society members’ interests
✔️ Ensure legal compliance during the transition
🦠 Developer’s COVID & Regulatory Excuses Rejected
The developer argued that delays were caused by COVID-19 disruptions, regulatory hurdles, and other external challenges.
However, the court found these explanations insufficient and ruled that the developer had defaulted on its obligations.
📢 The judgment reinforces that unforeseen events cannot justify years of stalled development without accountability.
🔄 Society Now Free To Appoint New Developer
With possession restored, the society now has the authority to:
- Appoint a new developer, or
- Opt for self-redevelopment
This is a significant empowerment for cooperative housing societies across Mumbai, where redevelopment disputes are common.
✨ The ruling sets an important precedent — housing societies are not helpless if developers fail to deliver.
⚖️ Bombay HC Orders Defaulting Developer To Hand Over Mulund Redevelopment Project To Society 🏗️