Oral Instructions Can't Override Statutory Duty: Bombay High Court Pulls Up Municipal Corp For Delaying Occupation Certificate

The Bombay High Court has expressed strong displeasure over the Municipal Corporation of Greater Mumbai (MCGM) keeping an application for an Occupation Certificate (OC) pending solely on the basis of alleged oral instructions issued by the Additional Chief Secretary. The Court observed that statutory authorities are required to act strictly in accordance with law and that oral instructions are inconsistent with the principles of transparency, accountability and the rule of law.

A Division Bench of Acting Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad was hearing two connected writ petitions concerning the processing of an application for an Occupation Certificate for a redevelopment project and a dispute regarding the location of an Amenity Open Space in the approved layout. Arkade Developers sought a direction to MCGM to process its application for an Occupation Certificate for Building No.1 of its redevelopment project "Arkade Pearl". MCGM informed the Court that it had not processed Arkade Developers' application because the Additional Chief Secretary had orally instructed it not to process any further development-related permissions in respect of the project until the dispute concerning the layout condition was decided.

The Court observed that MCGM was under a statutory obligation to process applications placed before it in accordance with the law. It held that if an application for an Occupation Certificate suffered from any deficiency or statutory non-compliance, the Municipal Corporation was required to specifically communicate the same to the applicant.

The Court said that an application could not be kept pending indefinitely on the basis of vague remarks on the online portal or for extraneous reasons, particularly when such delay adversely affected numerous flat purchasers.

Accordingly, with the consent of the parties, the Court directed the Chief Engineer (Development Plan), MCGM, to decide the issues by a reasoned order. It further directed that if the deficiencies were cured and the required documents furnished, MCGM should process and grant the Occupation Certificate.

The Court also recorded its strong displeasure at MCGM's stand that it had refrained from processing the application on the basis of oral directions allegedly issued by the Additional Chief Secretary. It observed that if such oral instructions had indeed been issued, they were illegal and inconsistent with the principles of transparency, accountability and the rule of law.

“Government authorities exercising statutory powers are required to act strictly in accordance with law. If indeed such oral instructions were issued, the same is illegal and are inconsistent with the principles of transparency, accountability and the rule of law,” the Court observed.

The Court directed that a copy of its order be forwarded to the Chief Secretary and the concerned Additional Chief Secretary of the State Government for taking necessary steps and passing appropriate directions.

Case Title: Arkade Developers Ltd. v. Municipal Corporation of Greater Mumbai [Writ Petition (Lodging) No. 21357 of 2026]

Citation: 2026 LiveLaw (Bom) 326

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