The Mumbai Repairs and Reconstruction Board (MRRB) has taken action against Satra Property Developers and Firstwave Developers, who are managing the redevelopment of Mahavir Building complex in Matunga. The MRRB issued a stop-work notice after the builders failed to settle outstanding rent payments to original occupants, consisting of more than 200 shopkeepers and tenants, despite a prior order to do so. Consequently, the MRRB revoked the No Objection Certificate (NOC) for the project and halted construction activities related to the property's sale component. The project is one of the largest redevelopment projects in Mumbai and aims to redevelop an area of 5560 sq.m. in Matunga East.
The Mumbai Repairs and Reconstruction Board (MRRB) has issued a stop-work notice to Satra Property Developers Pvt Ltd and Firstwave Developers LLP, who are overseeing the redevelopment of Mahavir Building complex. On October 11, 2023, the board ordered the developer to promptly settle the outstanding rent owed to original occupants, which spans multiple months.
However, the builder failed to adhere to this order. As a result, the board revoked the NOC for the redevelopment project and halted all construction activities related to the “sale component” of the property.
The Mahavir Building complex project focuses on redeveloping a 5,560 square metre area, which includes more than 200 shopkeepers and tenants. This is one of the largest redevelopment projects in Mumbai. It is located next to the Matunga Post Office on Bhandarkar Road in Matunga East. Satra Property obtained the MRRB's No Objection Certificate (NOC) and Firstwave is currently managing the construction.
In response to a show-cause notice issued on February 15, 2023, the board instructed the builder to comply with the Bombay High Court's November 3, 2021 order, which required the execution of permanent alternative accommodation agreements with tenants and the settlement of overdue rent.
In a letter dated August 7, 2023, Firstwave informed the board that they asked Shri Rajan Nambiar and other tenants to sign permanent alternative accommodation agreements and receive checks for overdue rent up to April 2023. However, instead of accepting the checks, the tenants raised complaints with the board.
During a hearing, Advocate N Ramachandran, representing the affected tenants, informed the board that the developer had neither finalised the permanent alternative accommodation agreements nor made rent payments for the past 35 months, leading to financial hardships for the tenants.
At a time when redevelopment projects are seeing a boom, this case highlights the plight of people displaced in such redevelopment projects.
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