Pune Court Rescinds ₹230-Crore Land Deal in Model Colony Jain Trust Dispute

A Pune joint civil judge (senior division) has cancelled the ₹230-crore land deal between the Seth Hirachand Nemchand Smarak Trust and Gokhale Landmarks LLP, declaring the sale agreement and power of attorney “void and inoperative since the beginning.”

The order, delivered on November 14 and the copy of which was made available on Monday, comes amid the political storm triggered by allegations against Bharatiya Janata Party (BJP) leader and former mayor Murlidhar Mohol, who has denied any role in the deal.

The cancellation follows the Maharashtra charity commissioner’s decision to withdraw the statutory sanction it had granted for the sale. The disputed 12,018 sq m plot at Bhamburda, Shivajinagar, houses a hostel and ancillary structures. The Trust had auctioned the land through a public tender, with Gokhale Landmarks emerging as the highest bidder. The charity commissioner sanctioned the deal on April 4 under Section 36(1)(a) of the Maharashtra Public Trusts Act.

The developer was to pay ₹230 crore and build a 52,000 sq ft hostel for the trust. After full payment, the agreement for sale was executed on May 15, followed by the sale deed and power of attorney on October 8. Physical possession, however, was never handed over.

Trouble erupted soon after, with former hostel residents and members of the Jain community alleging that the land was sold below market value. Multiple petitions were filed before the Bombay High Court and the charity commissioner seeking cancellation. As protests gathered momentum, the developer pulled out. On October 26, Gokhale Landmarks wrote to the Trust saying it had become “morally and practically impossible” to continue because of “social, political and religious interference,” and sought cancellation of all documents and refund of the money paid.

On October 30, the charity commissioner, with the consent of both parties, revoked the sanction, directed that the land remain with the trust, and ordered steps to cancel all registered documents. The civil court held that once the sanction was withdrawn, the sale documents had no legal effect but continued to pose a risk to the Trust’s title unless formally cancelled. Invoking Section 31 of the Specific Relief Act, the judge ordered cancellation of the documents and directed sub-registrars of Haveli 10 and Haveli 13 to update their records. The court also clarified that the developer has no rights or claims over the property and allowed both sides to seek stamp duty refunds.

The case has unfolded amid massive demonstrations against the sale of the Seth Hirachand Nemchand Digambar Jain Boarding (SHND) Hostel land in Model Colony — a 3.5-acre plot featuring a Jain temple and hostel. Thousands of Jains, including monks, former students, and alumni, marched to the district collector’s office demanding the scrapping of the transaction.

“Today’s judgement cancelling the deal is a victory of truth and justice for people. We thank the court for restoring faith in the judiciary,” said Akshay Jain, member of Jain Hostel Bachav Samiti, and chairman of Maharashtra Youth Congress. Gokhale Landmarks had proposed a 1.6 million sq ft ultra-luxury residential and retail project, with apartments starting at ₹7 crore, alongside a new 51,000 sq. ft. hostel and temple expansion. Protesters said the sale violated the sanctity of the religious site and amounted to a “betrayal of community faith.”

Case so far: April 4: Charity commissioner grants sanction to sell 12,018 sq m Bhamburda plot to Gokhale Landmarks for ₹230 crore May 15: Agreement for sale executed after full payment October 8: Sale deed and power of attorney registered; physical possession not handed over October: Former students and Jain community members file petitions alleging undervaluation; protests intensify October 26: Gokhale Landmarks writes to the trust seeking cancellation, citing social, political, and religious pressure October 30: Charity commissioner revokes sanction with consent of both parties; orders steps to cancel documents November 14: Civil court declares agreement for sale, sale deed, and power of attorney “void and inoperative since inception”; orders cancellation and directs sub-registrars to update records