Supreme Court summons MHADA chief officer over unpaid rent by developer for South Mumbai redevelopment project

The Supreme Court has summoned the chief officer of the Maharashtra Housing and Area Development Authority (MHADA) to explain how the agency plans to ensure payment of outstanding rent arrears to tenants affected by a long-delayed redevelopment project in South Mumbai.

The redevelopment of the Parvati Building, which began in 2013, has faced significant delays. The developer, responsible for providing temporary accommodation rent to tenants, has defaulted on payments, leaving many in financial distress. The SC's directive aims to address these grievances and pushes for a resolution.

The tenants claim that the previous developer defaulted on rent payments exceeding ₹12 crore for their temporary accommodation.

The SC's directive follows MHADA’s recent approval of a new developer to take over the redevelopment project, which has been stalled for over a decade. Tenants have alleged that the previous developer failed to pay rent for their temporary accommodation, leaving them in financial distress.

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The back story

Najaribai Jain, a tenant residing in a 543-square-foot unit in the Parvati Building in Bhuleshwar, South Mumbai, is among the affected residents. The building, which housed around 100 tenants, was slated for redevelopment. However, despite MHADA’s approval of a new developer, tenants are yet to take possession of their new homes more than 12 years after the project began.

In October 2024, Jain filed a special leave petition in the Supreme Court, leading to the SC’s order on March 24, summoning MHADA’s chief officer to appear in court on April 7, 2025.

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Supreme Court's order

In its order, the Supreme Court stated, “We direct the Chief Officer of MHADA to remain present before this court.”

The court also noted that MHADA had granted the previous developer a No Objection Certificate (NOC). A Letter of Intent has been issued to a new developer without including a clause ensuring the payment of rent arrears to eligible tenants.

“The Chief Officer shall remain present in this Court on 7 April 2025,” the SC ordered, emphasising the need for MHADA to present a clear plan for settling the outstanding payments.

The SC observed that, according to the newly appointed developer, the total rent arrears exceed ₹12 crore, yet only ₹2 crore has been disbursed so far.

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“We direct the Chief Officer to appear before the court and inform us in what manner MHADA will ensure that the rent arrears are paid to all eligible tenants/occupants,” the order read.

Meanwhile, an email query has been sent to MHADA. The story will be updated if a response is received.