HC Takes BMC, Mhada to Task Over 25-Year Delay

The Bombay High Court has sternly reprimanded the Brihanmumbai Municipal Corporation (BMC) and the Maharashtra Housing and Area Development Authority (Mhada) for their prolonged failure to issue an Occupation Certificate (OC) for a redeveloped property in Mahim (West).

Despite the project being initiated over 25 years ago, the tenants of the shops within the redeveloped site have been left in limbo, unable to secure basic amenities such as water and electricity due to the lack of an OC. The Bench, comprising Justices Mahesh S. Sonak and Kamal R. Khata, has issued clear directives to both Mhada and BMC, signalling an end to the long-standing ordeal faced by the tenants. The court ordered Mhada to issue a No Objection Certificate (NOC) to the petitioners by August 30, 2024, and directed the BMC to provide the long-awaited OC by September 20, 2024.

The redevelopment project, undertaken in 1986 by developer Raj Mahal, involved the reconstruction of a property consisting of three chawls, housing nine shops and nine residential units. These structures, originally built in 1946, were slated for a modernisation that included the construction of a front wing for shops and a rear wing for residential units and free-sale flats. However, the project soon became mired in complications. The tenants were handed possession of their shops with the assurance that an OC would Be granted once the residential units were completed. Decades later, that promise remains unfulfilled.

The absence of an OC h”s had severe repercussions. The BMC has withheld essential services, and the tenants have been subjected to punitive measures, including a 150% property tax imposed due to the building’s unregularised status. The developer’s failure to surrender 1,986 square feet of land, as per the Floor Space Index (FSI) of 2 granted to him, exacerbated the situation. This non-compliance led to the front wing being auctioned in January 2000, compelling the tenants to seek redress in the courts.

The High Court has ordered Mhada to reclaim the unsurrendered land from the developer or to extract its current market value. Additionally, any excess taxes collected from the petitioners due to the lack of an OC must be refunded, providing some financial relief to the long-suffering tenants. The directives from the High Court not only aim to resolve the immediate issues but also set a precedent for future cases involving bureaucratic delays and developer malpractices.