HC clears redevelopment of Punjabi Colony in Sion’s GTB Nagar

MUMBAI: The Bombay High Court (HC) on Tuesday approved the redevelopment of Punjabi Colony in Sion’s GTB Nagar, a site spanning approximately 11.20 acres and comprising 25 buildings. The court dismissed a petition by Navi Mumbai-based Lakhani Housing Corporation, paving the way for the Maharashtra Housing and Area Development Authority (Mhada) to oversee the redevelopment project.
A division bench comprising Justice A S Gadkari and Justice Kamal Khata rejected the developer’s challenge to a February 2024 Government Resolution (GR) that appointed Mhada as the special planning authority. The GR mandated that private developers be selected through a bidding process, requiring them to fulfil financial conditions, provide rehabilitation units to 1,200 families, and offer the highest housing stock or premium to Mhada.
Lakhani Housing Corporation contended that the land was owned by cooperative housing societies formed by Partition refugees who had purchased the residential tenements. The firm claimed to have secured consent from 909 families for redevelopment and argued it had already spent ₹17.30 crore on preliminary work.
However, the state government countered that Lakhani’s agreements with individual occupants were not legally binding, as they were neither stamped nor registered. Advocate General Birendra Saraf also highlighted that the ₹17.30 crore expenditure was insignificant compared to the project’s estimated cost of ₹2,930.77 crore.
Dr Saraf further pointed out that Lakhani could still participate in the bidding process, where its claimed majority consent could provide an advantage over other bidders.
The court noted that 14 of the 25 housing societies supported Mhada’s appointment, with at least 716 of the 1,200 residents agreeing to the redevelopment plan under Mhada. Significantly, 692 families have been displaced since 2019, when the dilapidated buildings were demolished, and continue to await rehabilitation.
The court observed that the consents obtained by Lakhani predated the formation of the cooperative societies, making them invalid for blocking Mhada’s plans. The bench further remarked that Lakhani’s payments to occupants, totalling ₹9.35 crore, did not confer any enforceable rights against Mhada.
Dismissing the petition, the court ruled there were no valid grounds to prevent Mhada from initiating the tendering process. The decision is expected to expedite the long-delayed redevelopment, offering relief to hundreds of families displaced for over five years.