High Court Orders Inquiry into Mhada's Misuse of Authority in Redevelopment Notices
The Bombay High Court has appointed a two-member committee to investigate a 'racket' involving Mhada engineers issuing 935 redevelopment notices to old buildings in prime locations in Mumbai.
MhadaRedevelopment NoticesBombay High CourtReal EstateLegal InquiryReal Estate MumbaiJul 29, 2025
A division bench of Justice GS Kulkarni and Justice Arif Doctor ruled that Mhada’s executive engineers had issued these notices without jurisdiction, as they had vested interests in the properties located in upmarket areas such as Banganga Road, Walkeshwar, Gamdevi Road, BG Kher Marg, and Nepean Sea Road.
The inquiry will be conducted by a two-member committee headed by Justice (Retired) JP Deodhar, a former judge of the Bombay High Court, and retired Principal District Judge Vilas D Dongre. The committee has been directed to submit its inquiry report within six months.
The court issued these orders after hearing a series of petitions challenging the redevelopment notices issued by Mhada to hundreds of cessed buildings deemed dangerous and dilapidated. The petitions claimed that executive engineers from the Mumbai Building Repairs and Reconstruction Board (MBRRB), a statutory unit of Mhada, had issued the notices without jurisdiction and based on only a 'visual inspection,' without conducting a structural audit of the buildings.
The controversy centers around Section 79-A of the Mhada Act, which allows Mhada to initiate the redevelopment of dangerously dilapidated cessed buildings if neither the owner nor the tenants take the necessary steps within a specified timeframe. Earlier this month, the court had observed that an executive engineer in Mhada had no jurisdiction to issue the redevelopment notices, adding that their actions appeared high-handed.
The court termed the matter serious, stating that the notices were issued to give an undue advantage to certain people while curtailing the rights of the owners and tenants of the cessed buildings. 'This would amount to a brazen misuse of the powers and authority vested with the concerned officers of Mhada at whichever level, we do not know,' the bench said.
Citing a 2024 judgment, the bench stated that Section 79-A of the Mhada Act can be invoked only if a building is first declared dangerous by the Brihanmumbai Municipal Corporation (BMC) or a competent authority. It held that executive engineers have no independent power to issue such notices.
Advocates NV Walawalkar, GS Godbole, and Surel Shah, appearing for the petitioners, submitted that Mhada had not vested any jurisdiction whatsoever in the officers who issued such notices. Even assuming the appropriate authority was involved, under Section 79-A, the notices could not have been issued based on just a 'visual inspection' of the buildings concerned. On the other hand, senior counsel PG Lad, representing Mhada, referred to provisions of the Mhada Act which showed that it was 'the primary responsibility of the board to repair the cessed buildings.'
Considering the large number of prime properties being adversely affected, the bench stated that the matter has 'gathered the colour of a racket/scam' by misusing the provisions of law. It noted that the redevelopment of the properties had been ordered at the behest of 'unscrupulous persons with vested interests' who intend to take advantage of the fact that the buildings are old.
The consequences of issuing such notices without the jurisdictional requirements are 'horrendous to say the least,' the bench said. Noting that the redevelopment of cessed properties involves floor space index incentives, which is 'a bonanza for commercial exploitation,' the court stated that the vested interests in these properties can be worth a fortune.
'The statutory machinery being misused for such ulterior motives and for windfall of benefits is a matter of serious concern. It is beyond one’s imagination as to how, in such large numbers, the impugned notices under Section 79-A could at all be issued,' the court said.
Expressing concerns over the board’s actions, the court held that if accepted, it would amount to rewriting legislative provisions and recognizing a regime of colossal arbitrariness and abuse of powers. 'The pattern is quite unique. It appears to be quite clear that these notices are issued wholly without jurisdiction. We may also observe that the petitioners’ case being of an extreme, unfortunate and blatant abuse of the powers by these officers,' the court added.
Frequently Asked Questions
What is the main issue addressed by the Bombay High Court?
The main issue is the 'colossal misuse' of authority by Mhada engineers who illegally issued 935 redevelopment notices to old buildings in prime locations in Mumbai.
Who is heading the inquiry committee?
The inquiry committee is headed by Justice (Retired) JP Deodhar, a former judge of the Bombay High Court, and retired Principal District Judge Vilas D Dongre.
What is Section 79-A of the Mhada Act?
Section 79-A of the Mhada Act allows Mhada to initiate the redevelopment of dangerously dilapidated cessed buildings if neither the owner nor the tenants take the necessary steps within a specified timeframe.
Why are the redevelopment notices considered illegal?
The notices are considered illegal because Mhada’s executive engineers issued them without jurisdiction and based on only a 'visual inspection,' without conducting a structural audit of the buildings.
What are the potential consequences of issuing these notices?
The consequences of issuing such notices without the jurisdictional requirements are 'horrendous to say the least,' as it involves the misuse of statutory machinery for commercial exploitation and can be worth a fortune.
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