
In a significant ruling by the Bombay High Court, the petitioners, former tenants of the property located at Miya Mohamed Chhotani Road, Mahim, Mumbai, successfully sought relief against the Municipal Corporation of Greater Bombay (MCGM) and Maharashtra Housing and Area Development Authority (MHADA). The court ordered the issuance of an Occupation Certificate (OC) for the shops and waived additional municipal taxes levied due to the developer's failure to comply with construction norms. The judgment highlights the protection of tenants' rights in redevelopment scenarios and places the responsibility on developers to fulfill statutory obligations.
The petitioners were tenants of properties on Miya Mohamed Chhotani Road, which were later sold to Raj Realtors Construction Company Pvt. Ltd. for redevelopment. After the property was handed over to the developer, the tenants were assured new shops upon the completion of the redevelopment project.
Despite the completion of the shops, the developer failed to secure an Occupation Certificate (OC), leading the Municipal Corporation to impose a 150% additional property tax on the petitioners. The delay was attributed to the developer's failure to meet MHADA’s conditions, including the surrender of a portion of the property for public use.
The petitioners approached the High Court seeking a writ of mandamus to direct the MCGM to issue the OC and waive the additional taxes. The petitioners argued that the responsibility for obtaining the OC lay with the developer, not with them.
The Bombay High Court, while acknowledging the petitioners' grievances, directed the MCGM to issue a provisional Occupation Certificate. The court also ordered the revision of property taxes, holding that the petitioners should not be penalized for the developer's defaults.
This ruling reinforces the protection of tenant rights in redevelopment projects and underscores the obligations of developers and municipal authorities to comply with statutory requirements. The judgment is expected to influence similar cases where tenants are caught in disputes between developers and local authorities.
Case Title: T.J. Thomas And Ors. versus Municipal Corporation of Greater Bombay And Ors.
Citation: 2024 LawText (BOM) (8) 134
Case Number: WRIT PETITION NO. 185 OF 2000 WITH WRIT PETITION NO. 569 OF 2021
Date of Decision: 2024-08-13