Bombay HC Backs Housing Society, Allows New Builder After 13-Year Delay

The Bombay High Court has dismissed a builder's plea to stop a Wadala housing society from appointing a new developer for redeveloping 46 buildings with 900 tenants.
Bombay HC Backs Housing Society, Allows New Builder After 13-Year Delay

Mumbai, April 27: Justice Sandeep Marne observed that the builder was appointed in 2013 to carry out redevelopment and the tenants cannot wait indefinitely.

Key Observations

  • The stakes of the housing members "are way higher" than those of the developer

  • Granting interim relief would lead to the project being "delayed indefinitely"

  • "This would endanger the lives of the 826 members, who are residing in the buildings constructed in the year 1957"

  • "The members are waiting for safer, bigger and better homes for the last 13 years and their wait cannot continue indefinitely"

Background

  • Builder: Pioneer Constructions (appointed 2013)

  • Society: Sahakar Nagar CHS, Wadala

  • Scope: 46 buildings with 900 tenants

  • Buildings constructed: 1957

  • New developer: Sugee Avenue Pvt Ltd (approved by society on Jan 10)

Builder's Arguments

  • DCR changes, members' litigation, and Covid-19 caused delays

  • No termination clause in development deals

Society's Response

The builder did "absolutely nothing" for 13 years beyond spending ₹1 crore towards EMD, leaving tenants in despair.