Mumbai: In a major legal development highlighting prolonged inaction and alleged violations in a 14-year-old housing redevelopment project, senior citizens and original tenants of Parvati Building, Thakurdwar, have moved the Supreme Court of India by filing a Special Leave Petition (SLP) against the Maharashtra Housing and Area Development Authority (MHADA) and the project developer.
The SLP challenges the Bombay High Court’s order dated September 9, 2024, which disposed of a contempt petition filed in connection with Writ Petition No. 27 of 2022. The petitioners alleged willful disobedience of a previous High Court directive dated August 11, 2023, which had directed MHADA to firstly appoint a new developer if necessary; and certify and disburse dues to tenants within 30 days, with a 6% annual interest on delayed payments.
The petitioners argue that MHADA’s compliance was selective and incomplete. While MHADA claimed it had certified the payment dues via an order dated April 16, 2024, the certification covered only 20 out of 114 tenants. Notably, the petitioners—despite being original litigants—were excluded from this list, and their pending dues amounting to Rs. 22,13,459 remain unpaid.
“The exclusion of the petitioners and non-payment despite clear directions constitutes a willful breach of the court’s order,” the SLP states, citing Dinesh Kumar Gupta vs. United India Insurance Co. (2010), a landmark case defining civil contempt prerequisites.
The developer, Parekh Construction is under increased scrutiny. The petitioners highlighted that despite giving undertakings in other cases and paying arrears in parallel projects, the same has not been done in their case. Further, the developer is reportedly facing an FIR and a demand notice for dues amounting to over Rs. 9 crore under the Maharashtra Land Revenue Code, issued by the Mumbai City Tahsildar.
Alleging that the redevelopment has seen no progress beyond excavation despite 14 years, the petition notes that not even a plinth has been erected. “The developer has used the project to acquire land without fulfilling its redevelopment obligations,” the petitioners advocate Nilesh Gala argued.
Under the terms of the No Objection Certificate (NOC), redevelopment was to be completed in 24–30 months, with tenants receiving transit rent for the duration. However, the petitioners claim they have not received any rent since November 2018, and arrears have reached over Rs. 22 lakh per family in some cases.
The High Court had earlier observed the project caused severe hardship, especially to senior citizens who have been displaced for more than a decade. The Court had remarked that developers should not be allowed to abandon such projects without consequence.
The Supreme Court has acknowledged the gravity of the issue. After reviewing an affidavit filed by MHADA’s Chief Officer—who appeared personally—the Court noted that there was no solution in sight and arrears exceeded Rs. 10 crore.
MHADA assured the Court it would not issue a fresh NOC to the developer unless a satisfactory plan was submitted. This judgment is not only going to benefit the two petitioner’s who had filed a complaint against the developers, but it is also going to benefit the total 114 residents who were in contract with the developer.
The Supreme Court has also granted time for the developer to provide instructions and listed the matter for April 21, 2025. MHADA’s Chief Officer has been directed to remain present via video conference on the next date of hearing. The Court also instructed tenants to cooperate with MHADA officials to determine the accurate amount of arrears due.
