Mumbai homebuyers’ 18-year wait over as Bombay HC cracks down on developers for delaying projects

In 2008, the first step was taken to fulfill the dreams of 181 members of a housing society in Kalachowki, Chinchpokli – redeveloped homes. Even after around 18 years, they are still waiting for their houses as the project got entangled in a series of delays.

The BMC, in 2008, issued the developer a Letter of Intent (LOI) in April 2008 and cancelled it in February 2025. The ruling is part of a series of interventions over project delays. The court has reiterated homebuyers’ right to interest until actual possession, rejected force majeure claims by developers and, in some cases, initiated contempt proceedings for failure to honour undertakings on construction and handover deadlines.

Justice Sethna, who authored the judgment, emphasised the emotional significance of owning a home in Mumbai. “We are reminded of the famous adage, 'Home is where the Heart is.' Mumbaikars, in their dream city of Mumbai, have immense hope and aspirations in regard to their dwelling house, which may manifest itself by way of a flat, apartment, etc.

Besides the hard earned money that is put in for a house in Mumbai, there is an investment of emotions, feelings and sentiments attached to having a home in their city of dreams, which cannot be procrastinated,” he observed.

The project was awarded to the developer’s erstwhile partners in 2008, following a March 31 resolution by the BMC Improvement Committee. The civic body terminated their contract in 2018 over inaction, but later reinstated the present petitioners as developers.

No progress followed a development agreement executed in June 2024, prompting the BMC to issue a termination notice on February 11, 2025. In September 2026, the society decided to appoint a new developer. Rejecting the developer’s allegations of delay by the BMC and the society, the High Court said the society “cannot be compelled to continue with the petitioner as a developer”.

It added that “the redevelopment ought to be completed within time, which is of essence and this ought not to be procrastinated indefinitely, on some pretext or the other”. On October 23, another bench directed developer Victoria Enterprises to pay simple interest on Rs 5.51 crore from the promised possession date until actual handover of flats/units in commercial premises in the Bandra Kurla Complex.

Rejecting the developer’s reliance on delays in obtaining approvals, the court observed: “Rejection of plan by the Planning Authority does not constitute a force majeure event. In any case, it cannot be contended by any stretch of imagination that it can take 12 years in getting the plans sanctioned from the Planning Authority.” In June, the High Court held that homebuyers who remain in delayed projects are entitled to interest for every month of delay until possession under the Real Estate (Regulation and Development) Act (RERA).

The case concerned Runwal Infinity, also known as Runwal Sanctuary, in Mulund, where buyers who booked flats between 2005 and 2007 faced a possession delay of nearly 16 years. In September 2023, the High Court sentenced Pravin Vikkram Satra, proprietor of Darshan Developers, to three months in prison for contempt after he failed to honour an undertaking on construction and possession deadlines and obtaining permissions for occupation and use of the flats.

The court stayed the sentence for six weeks, allowing Satra to approach the Supreme Court, and directed him to deposit Rs 4 crore. Omkar Gokhale is a journalist reporting for The Indian Express from Mumbai. His work demonstrates ex...

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