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The Bombay High Court has ordered Neelkamal Realtors Suburban Pvt Ltd to complete and hand over eight buildings to MMRDA in Mahajanwadi under the defunct Rental Housing Scheme (RHS). The buildings-comprising around 3,000 residential and commercial units-were to be built on 25% of the plot using 1 FSI, in exchange for 3 FSI for free-sale buildings. While the developer built and sold 26 buildings, it failed to deliver the MMRDA units. The court rejected Neelkamal's plea to shift to a newer housing policy, reinforcing that public welfare obligations under RHS must be honoured despite scheme discontinuation.
?The Bombay High Court has directed Neelkamal Realtors Suburban Pvt Ltd to complete and hand over eight buildings to the Mumbai Metropolitan Region Development Authority (MMRDA) under the erstwhile Rental Housing Scheme (RHS). These buildings, located in Mahajanwadi within the Mira Bhayandar Municipal Corporation (MBMC) jurisdiction, are expected to comprise nearly 3,000 residential and commercial units. Advertisement
In 2008, Neelkamal Realtors undertook a development project under the RHS, which allowed the builder a Floor Space Index (FSI) of 4. The terms required the developer to construct eight buildings on 25% of the plot and hand them over to MMRDA free of cost, utilizing 1 FSI. The remaining 75% of the plot could be used for free-sale construction with the remaining 3 FSI.
However, the developer completed and sold 26 buildings using the 3 FSI allocated for free-sale projects but failed to fulfill the obligation of completing and handing over the eight buildings designated for MMRDA. The court emphasized that the RHS was designed to benefit the public by providing affordable housing, and the developer's failure to comply resulted in a loss to the public exchequer.
Neelkamal Realtors contended that the eight buildings were constructed, but the scheme was scrapped in 2014 and converted into an affordable housing scheme. The MBMC countered that while the developer completed the free-sale buildings, the buildings meant for MMRDA remained incomplete.
The High Court dismissed the developer's plea to switch to a new scheme under the Unified Development Control and Promotion Regulations, reinforcing the importance of adhering to original commitments made under public welfare schemes.
This ruling underscores the judiciary's commitment to ensuring that developers honor agreements made under schemes intended for public benefit, particularly in the realm of affordable housing.
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