‘Investment of emotions’: Bombay HC raps builder over 18-year delay for house in Mumbai

The Parijat Cooperative Housing Society terminated its agreement with Om Shanti Properties in February 2025 and appointed a new developer in September 2026.

Refusing relief to a developer who delayed a Kalachowkie redevelopment project by 18 years, the Bombay High Court observed that there is significant sentimentality attached to owning a home in Mumbai, and developers must factor in the “hope and aspiration” associated with it.

The redevelopment project in Kalachowkie covers 181 society members and includes two buildings, a chawl, 19 garages, two temples, a gymnasium and two godowns. (HT Photo)

A division bench of Chief Justice Mahesh Chandra Tripathi and Justice Advait Sethna noted in their order passed on Monday: “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. In such context, developers have a huge responsibility cast upon them in law to ensure that their obligation in terms of handing over possession of the flats through a redevelopment scheme or otherwise is done in a timely manner.”

Developer challenges termination of Kalachowkie project

The court was hearing a petition filed by the developer, Om Shanti Properties (OSP), which had undertaken the redevelopment of Parijat Cooperative Housing Society consisting of 181 members in Kalachowkie. OSP challenged a termination notice issued by the society on 11 February 2025, urging the court to strike down the notice and restore the redevelopment project it had secured in 2008 with the majority consent of the members.

The bench emphasised that inordinate delays in completing redevelopment projects “not only augment the plight of the tenants, flat owners, occupiers or beneficiaries of a redevelopment scheme, but also defeat the purpose which the law in this regard intends to achieve.”

BMC intervened over lack of progress in project

On 31 March 2008, the erstwhile partners of OSP were appointed as developers for the Parijat housing society, which comprised two buildings, a chawl, 19 garages, two temples, one gymnasium, and two godowns. In 2017, the BMC issued a show cause notice over the developer’s inaction, and on 16 July 2018, it terminated the redevelopment contract.

In February 2019, the BMC permitted OSP to resume the project after the developer paid a capital value of ₹27.68 crore. The court was informed that the developer had agreed to terminate the project if it was not completed by 2022.

Following a lack of progress after 2020, the BMC sought to terminate the letter of intent and blacklist the developer. In June 2024, OSP executed a permanent alternative accommodation agreement with the society members. However, in 2025, the society terminated the development agreement and expressed its intention to select a new builder, whom it subsequently appointed in September this year.

OSP argued that the delay could not be attributed solely to its actions, as implementation depended on multiple steps involving the society and the BMC. Conversely, the society highlighted that the builder failed to progress for nearly two decades, adding that the ₹27 crore payment was due to repeated defaults and did not grant equity or entitlement.