Bombay High Court Refuses To Stay Tender Process For 'Cluster Redevelopment' Of Over 5,000 Societies In Mumbai

In a significant order, the Bombay High Court earlier this week, refused to stay the operation of the tenders floated for the integrated cluster development of more than 5,000 housing societies in the plush Bandra Reclamation and Worli areas in Mumbai.

A division bench of Justice Makarand Karnik and Justice Shriram Modak said that it would be hearing the matter finally and therefore, refused to stay the tenders, which were floated on April 7 and the bids likely to be opened on May 20.

"At this stage, taking an overall view of the matter, we are of the opinion that no prejudice would be caused to the petitioners if the tender process is allowed to proceed. We are inclined to hear the writ petitions finally having regard to the submissions canvassed by learned Senior Advocates for the petitioners and considering the magnitude of the proposed redevelopment," the bench said in the order passed on May 6.

The bench noted that the land in question belongs to the Maharashtra Housing and Area Development Authority (MHADA), which is undertaking the cluster redevelopment through Construction and Development Agency( C&DA).

"The government has undertaken a decision regarding the integrated/cluster redevelopment of the buildings in the two MHADA layouts, namely Bandra Reclamation and Adarsh Nagar (Worli). With a view to creating affordable housing in Mumbai City and Suburban areas, the Government, through the Mumbai Board of MHADA, constructed 56 colonies during the period from 1950 to 1960 for the MIG and LIG. These colonies comprise approximately 5000 cooperative housing societies. In the resolution it is stated that since the said buildings are now about 50 to 60 years old, certain structures have become dilapidated and are in a state of disrepair. Consequently, redevelopment of such buildings has become necessary in order to improve the living standards of the residents therein," the bench observed in the order. 

The bench was hearing a clutch of petitions filed by various housing societies, which are part of this cluster development, which challenged the Government Resolutions issued on April 25, 2025 and December 15, 2025.

The judges noted that the GRs clarified as to why it has become necessary to undertake integrated redevelopment of entire layouts so as to enable planned development of infrastructure, ensure proper area planning, and facilitate construction of high quality buildings along with requisite amenities during the redevelopment of MHADA colonies.

"The buildings in the two MHADA layouts at Bandra Reclamation and Adarsh Nagar (Worli) are to be redeveloped through an integrated/cluster redevelopment approach. The Government Resolution mentions that the planned redevelopment of infrastructure within these layouts is equally important and can be effectively achieved only through such integrated/cluster redevelopment, proposals for redevelopment of individual buildings/self-redevelopment within these layouts shall not be considered. The Government Resolutions frames a policy for undertaking integrated/cluster redevelopment of MHADA layouts admeasuring 20 acres or more in Greater Mumbai and Suburban areas," the judges noted. 

For these reasons, the bench refused to issue an interim order staying the tender process stating that the award is likely to take some time. The bench said it would try and hear the final arguments in the matter on June 9, 2026 at 3 PM. If the matter is not heard on the given date, due to any reason, the judge said it will be inclined to hear the prayers made by the petitioner societies to grant interim reliefs. 

According to the petitioner housing societies, the two GRs are in complete breach of the provisions of Article 300A (right to property) of the Constitution of India and also in complete breach of the provisions of Development Control and Promotion Regulations (DCPR).

"Though the lands belong to MHADA, the buildings have been constructed pursuant to valid leases which are still in force and under the said leases it is the petitioner societies which have a right to redevelop the properties which right is completely taken away by the impugned GRs in an arbitrary manner. Not only the GRs are beyond the statutory provisions of the DCPR but even the tender document prescribes the terms which are not even provided by the GRs," the petitioners argued. 

On the other hand, Advocate General Dr Milind Sathe and senior advocate Venkatesh Dhond for MHADA, highlighted that the GRs specifically mention that the colonies have approximately 5,000 Co- operative Housing Societies and since the said buildings are now about 50 to 60 years old, some of the structures have become dilapidated so the redevelopment is undertaken to improve the living standards of the residents therein.

The matter would not be heard on June 9, at 3 PM.

Appearance:

Senior Advocates YS Jahagirdar, Vishwajeet Sawant, Zal Andhyarujina and Pravin Samdani along with Advocates Karl Tamboly, Mayur Khandeparkar, Shailendra Kanetkar, Deeksha Jani, Niket Jani, Nilesh Modi, Ashish Rebello, R Sawant, Bhavin Shah, Karan Bhide, Anshuman Jagtap, Chandrama Raje, Nidhi Singh and Brian Noronha instructed by law firms Jani & Parikh, Rustamji and Ginwala, Economic Laws Practice and Indialaw LLP appeared for various Petitioners. 

Senior Advocate Venkatesh Dhond along with Advocates Dr. Abhinav Chandrachud and Prasad Lad represented the MHADA.

Advocate General Dr. Milind Sathe along with Chief Government Pleader Anjali Helekar and Additional Government Pleader Mohit Jadhav assisted by Assistant Government Pleaders Anupama Pawar, Vikrant Parshurami, Dipesh Siroya, Rakesh Pathak, Lavina Kriplani and Manish Upadhye represented the State.

Case Title: Kamalpushpa Co-operative Housing Society Ltd. vs Maharashtra Housing and Area Development Authority [Writ Petition (L) 14649 of 2026]

Citation: 2026 LiveLaw (Bom) 248

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