The redevelopment of a 44-year-old housing society in Mumbai was stalled after the Enforcement Directorate (ED) attached one of its flats. The Bombay High Court (HC) has now directed the agency to issue a no-objection certificate (NOC) within six weeks, allowing the society to appoint a developer and proceed with redevelopment.
In its October 13, 2026, order, the HC held that the ED’s interests could be protected through safeguards covering the replacement flat and the financial benefits arising from it.
The case: Housing society approaches court over redevelopment delay
The case concerns Antaral Co-operative Housing Society in Mumbai, which has 10 flats and 12 members. The building is more than 44 years old and, according to the society’s plea before the court, lacks modern safety amenities and a lift, making it unsafe and unsuitable for occupation. The society also told the court that several members are senior citizens who have been directly affected by the building’s deteriorating condition.
According to the society, the ED had attached a flat in connection with an alleged money-laundering offence under the Prevention of Money Laundering Act (PMLA).
The society approached the ED seeking a no-objection certificate (NOC) for redevelopment, as demolishing the existing building would also involve the attached flat. However, the agency rejected the request on September 2, 2025, stating that the flat was under attachment and in the custody of the Special Court, and that the society should approach the appropriate forum, the society told the court.
{{/usCountry}}The society approached the ED seeking a no-objection certificate (NOC) for redevelopment, as demolishing the existing building would also involve the attached flat. However, the agency rejected the request on September 2, 2025, stating that the flat was under attachment and in the custody of the Special Court, and that the society should approach the appropriate forum, the society told the court.
{{/usCountry}}The society subsequently approached the Bombay High Court seeking directions for the ED to issue an NOC, while allowing the attachment to continue over the replacement flat. It clarified that it was neither challenging nor seeking to dilute the attachment, but wanted to proceed with redevelopment while preserving the ED’s rights over the new flat allotted in lieu of the attached property.
ED’s response: Seeks bank guarantee amid redevelopment
During the proceedings, the society submitted an affidavit undertaking to protect the ED’s rights over the replacement flat and the financial benefits arising from redevelopment. It stated that the replacement flat would remain subject to attachment, with its details recorded in the redevelopment agreement and permanent alternate accommodation agreement (PAAA). The society also undertook to hand over possession of the replacement flat to the ED upon completion of the redeveloped building and issuance of the occupation certificate.
The society also undertook that all financial benefits arising from the attached flat, including transit rent, corpus fund, hardship compensation and other payments, would be deposited in a separate account designated by the ED. These amounts would not be paid to the person accused in the proceedings.
The ED, however, insisted on a bank guarantee before the existing flat was handed over for demolition. The guarantee would have to be renewed at the developer's cost until the replacement flat was delivered and could be invoked if the flat was not handed over within the stipulated outer time limit.
Bombay High Court verdict: Bank guarantee not required, ED to issue NOC in six weeks
The Bombay HC said the society's undertakings largely addressed the ED's apprehensions. It observed that the replacement flat would receive the same benefits as other members' flats, while the Development Agreement and PAAA would specifically mention the attachment.
"We do not agree to the suggestion that a Bank guarantee shall be furnished by the Petitioner-society, as we must note that it is only one flat in the society which is under attachment and we do not intent to put the society under a financial pressure and particularly when the Developer and the terms of development are not yet finalised," the Bombay HC said in its order.
The Bombay HC further said that “we must appreciate the bona fides of the Petitioner society, as it has given a specific undertaking that in the PAAA, all the details of the attachment as well as the proceedings shall be included and not only that.”
"We also direct the Petitioner-society as well as the Developer, who shall be appointed, to keep the Directorate of Enforcement in the loop, while drafting the Development Agreement as well as the PAAA and the draft so prepared, shall be vetted through ED only as regards Flat No.4," the order said.
In conclusion, the Bombay HC directed the ED to issue a No Objection Certificate (NOC) in favour of the petitioner-society within a period of six weeks from the date of the order. "We also make it clear that No-Objection Certificate shall be subject to the compliance of the stipulations stated in the affidavit filed by the Petitioner society," the Bombay HC said in the order.
An email query was sent to ED. The story will be updated if a response is received. The housing society could not be reached for comment.