August 16, 2024: The Brihanmumbai Municipal Corporation (BMC) and the Maharashtra Housing and Area Development Authority (Mhada) has been pulled by the Bombay High Court for failing to issue Occupation Certificate (OC) for tenants of shops in a project redeveloped in Mahim (W) even after 25 years now. The Bench comprising Mahesh S Sonak and Kamal R Khata has issued a directive to Mhada to issue NOC by August 30,2024 to the petitioners. It has also ordered the BMC to give the OC by September 20, 2024. According to media reports, the HC has ordered Mhada to recover the land that was not surrendered from the developer or take its market value. Finally, any additional taxes collected from the petitioners should be refunded to them.
The case
Developer Raj Mahal in 1986 acquired for redevelopment a property in Mahim (West) that had three chawls with nine shops and nine residential units built in 1946. As part of the redevelopment plan, the developer had to construct a front wing for shops and a rear wing for the residential units and free sale flats. Once the shops were constructed, the tenants were given possession by saying OC will be given only when the residential units are completed. As the residents were not given OC, the shops never got access to water and electricity held by the BMC. Also, the municipal body levied a 150% property tax on these properties as the building was not given OC by the Mhada. Additionally, because the developer had been granted a FSI of 2, he was to surrender the 1,986 sqft which he failed to. Owing to this, a penalty was levied and the front wing was auctioned in January 2000 and thus the HC was approached by the tenants.
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