The Supreme Court has directed that no work order be issued for the Maharashtra Housing and Area Development Authority's (MHADA) proposed cluster redevelopment project at Bandra Reclamation until 13th August, while agreeing to examine a batch of petitions challenging the redevelopment scheme approved by the Maharashtra government.
A bench of justice Vikram Nath and justice Sandeep Mehta passed the interim order after hearing petitions filed by several co-operative housing societies questioning the legality of the large-scale redevelopment plan covering Bandra Reclamation and Adarsh Nagar in Mumbai.
"Let counter affidavit be filed within a week. Rejoinder affidavit be filed within one week thereafter by petitioner(s). List on 13 August 2026... Till then, the work order shall not be issued," the bench ordered.
The Court directed the state of Maharashtra, MHADA and the other respondents to file their counter-affidavits within one week. The petitioners were granted a further week to file their rejoinders before the matter is taken up on 13th August.
The dispute relates to MHADA's proposal for the integrated redevelopment of about 98.27 acres at Bandra Reclamation and about 34.33 acres at the Adarsh Nagar layout. The redevelopment is being undertaken under government resolutions issued in April and December 2025, followed by a tender floated in April 2026 to appoint a construction and development agency.
The Bombay High Court had, on 2nd July, upheld both the government resolutions and the tender process, observing that the redevelopment was conceived in the larger public interest. While dismissing challenges filed by several housing societies, the High Court accepted the state's submission that no work order would be issued for four weeks to enable the aggrieved parties to approach the Supreme Court. The apex court has now extended that protection until the next date of hearing.
Adani Properties emerged as the highest bidder for the redevelopment project.
The petitioners contend that the redevelopment framework was originally intended for ageing medium income group (MIG) and low income group (LIG) housing colonies and that high income group (HIG) societies have been brought within its ambit without legal justification.
According to the petitions, several HIG societies purchased their flats decades ago on an ownership basis. However, MHADA has included them in the cluster redevelopment despite allegedly failing to execute conveyance deeds in their favour.
The societies have also challenged the constitutional validity of certain provisions of the Development Control and Promotion Regulations, 2034 and the MHADA Estate Management Regulations, 1981. They argue that these provisions permit redevelopment without obtaining the consent of housing societies, violating the guarantees of equality and property rights under Articles 14 and 300A of the Constitution.
Another key grievance relates to a Bombay High Court judgement delivered in 2009 which set aside MHADA's demand for enhanced prices for tenements and held that conveyance could not be withheld on that basis. The petitioners argue that, despite this ruling, conveyance has still not been completed and that MHADA itself acknowledged in subsequent proceedings that the land was required to be conveyed to the federation of HIG societies.
The petitions further allege that MHADA unilaterally fixed transit rent at ₹75,000 per month and a corpus amount of ₹30 lakh for certain buildings without consulting residents or conducting any market assessment. According to the societies, these amounts are significantly below prevailing market rates in Bandra Reclamation.
The petitioners have also argued that compelling housing societies to become part of a cluster redevelopment scheme infringes the procedural safeguards associated with the constitutional right to property, including the rights to notice, a hearing and fair compensation. They further contend that the compulsory inclusion of societies is contrary to the provisions of the Maharashtra Co-operative Societies Act, 1960 and violates the freedom of association guaranteed under Article 19(1)(c) of the Constitution.
Before the Supreme Court, counsel for the housing societies argued that even where the government is the lessor, leasehold rights cannot be taken away unless there is a breach of the lease conditions or the leasehold interest is acquired in accordance with law.
The state, however, has maintained that MHADA owns the land and that permitting individual societies to undertake isolated redevelopment through private developers would undermine the broader policy objective of planned redevelopment. It argued that the project is aimed at modernising ageing housing layouts, improving infrastructure, creating additional affordable housing stock and ensuring better accommodation for existing occupants.
In its 2nd July judgement, the Bombay High Court observed that the redevelopment served a larger public purpose and that judicial interference at the instance of a limited number of societies could adversely affect thousands of residents expected to benefit from the comprehensive redevelopment programme.
The Supreme Court will now consider the rival contentions after pleadings are completed when the matter comes up for further hearing on 13th August.
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