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The Bombay High Court recently issued a temporary injunction against the Maharashtra government's decision to redevelop at least 25 housing societies in the Guru Teg Bahadur Nagar (GTB Nagar) refugee colony, also known as the Punjabi colony, in Sion. The court's action came in response to a challenge filed by a developer who had secured redevelopment agreements with some of these societies.
The developer, Lakhani Housing Corporation from Navi Mumbai, contested the cabinet's redevelopment decision as well as subsequent government resolutions and tenders related to the project.
The housing societies in question, currently comprising around 1,200 tenants, were established between 1954 and 1987 under the Displaced Persons (Compensation and Rehabilitation) Act, 1954 for Punjabi and Sindhi refugees. Over time, the buildings deteriorated and were declared dilapidated by the Brihanmumbai Municipal Corporation (BMC).
In 2013 and 2014, Lakhani approached some of these societies with redevelopment proposals. This led to Lakhani being appointed as their developer through general meetings. As the registration of the rest of the societies had expired by then, private agreements were reached between Lakhani and the society members for redevelopment consent. Lakhani invested over INR 9 crore in the form of deposits to residents and covered litigation expenses against BMC demolition notices.
Between 2019 and 2022 the BMC demolished a number of the buildings that had been transferred to Lakhani Housing Corporation by the concerned societies.
In 2023, the Maharashtra Housing and Area Development Authority (MHADA) proposed redeveloping 25 buildings, claiming government ownership of the land. MHADA said a federation called the Guru Teg Bahadur Nagar CHS Federation Limited, formed by the residents, has sought their assistance in redeveloping these societies. However, there were objections against this federation by some housing societies who had also filed police complaints against it.
Despite clarification that the land was privately owned, MHADA proceeded with the proposal, leading to a cabinet decision in February 2024. Pursuant to this, the Maharashtra government notified a Government Resolution (GR) outlining the redevelopment plan through its housing department.
Lakhani Housing Corporation argued that this decision, resolution and subsequent actions were unconstitutional and void as they infringed on contractual rights granted to them by the societies. It also said MHADA lacked jurisdiction and the proposed redevelopment would cancel all existing agreements.
The Bombay High Court has now temporarily halted the government's redevelopment plan, citing concerns around jurisdictional authority and legality. An interim stay has been granted until the next hearing on May 8. The court highlighted the need for further examination of the circumstances surrounding the proposed redevelopment before any further steps are taken.
With multiple stakeholders involved, achieving a solution that respects all legal rights and priorities will be challenging. However, it is hoped the ultimate goal of providing safe and dignified housing to the residents is kept foremost as this redevelopment dispute progresses through the legal process.
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