The Bombay High Court has directed the Maharashtra Housing and Area Development Authority (MHADA) to proceed with the self-development proposal for 500 dilapidated buildings in Kannamwar Nagar without requiring a No Objection Certificate (NOC) from the original developer. The court's decision provides relief to residents who have waited for 18 years for the redevelopment of their buildings. The Kannamwar Nagar Nagarpalika Bhadekaru Co-operative Housing Society must submit an affidavit-cum-indemnity to MHADA and ratify its April 8, 2021, resolution for self-redevelopment to fulfill the court's conditions.
The Bombay High Court has come to the rescue of 500 families residing in Kannamwar Nagar, Vikhroli East, by directing the Maharashtra Housing and Area Development Authority (MHADA) to process their proposal for self-development without imposing the requirement of a No Objection Certificate (NOC) from their original developer. This decision offers relief to residents who have been patiently awaiting the redevelopment of their dilapidated buildings for the past 18 years. However, the court's relief comes with certain conditions, requiring the Kannamwar Nagar Nagarpalika Bhadekaru Co-operative Housing Society to submit an affidavit-cum-indemnity to MHADA, along with ratification of its April 8, 2021, resolution for self-redevelopment.
The saga began in 2005 when the society decided to embark on redevelopment and enlisted Excel Arcade Pvt. Ltd. as its developer. Subsequently, 10 out of the 13 society buildings were demolished by Excel Arcade between 2008 and 2011, with only 84 of the 404 displaced families being rehabilitated. Unfortunately, the project faced a setback when Excel Arcade defaulted on transit rent payments to affected families in June 2018 and abandoned the project altogether. This led the society to terminate its agreements with the developer in April 2021 and opt for self-redevelopment.
Despite these challenges, the society's efforts faced another hurdle when it applied for an NOC from MHADA for its self-redevelopment plan of approximately 15,255.99 square meters. MHADA, citing a dispute over the deposit requirement, refused to issue the NOC unless the society deposited 25% of the redevelopment costs as the first installment, amounting to around Rs.11.40 crore in this case. The society argued that the previous developer owed them Rs.26.20 crore as per an unchallenged arbitral award. This amount, already deposited by the developer, should be adjusted against the deposit requirement, the society contended.
Recognizing the complexities and financial implications, the court directed MHADA to make the necessary adjustments in favor of the society. However, this adjustment comes with a condition that the society marks its arbitration award as partly satisfied once the credit is allowed. This ruling from the Bombay High Court offers a glimmer of hope for the long-suffering residents of Kannamwar Nagar, providing them with an opportunity to proceed with their self-redevelopment plans.
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