Case Note & Summary
The Writ Petition was instituted challenging the Demand Notice dated 9th September 2014 issued by Respondent No.1 – Mumbai Metropolitan Region Development Authority (MMRDA), levying penalty/additional premium for delay in completion of construction under a registered Lease Deed executed on 27th July 2006. The petitioner, originally M/s. Starlight Systems (I) LLP and subsequently renamed and amalgamated into Sunteck Realty Limited, had been granted leasehold rights over Plot Nos. R-1.2 and R-1.3 at Bandra-Kurla Complex for 80 years upon payment of full lease premium of Rs. 136,90,60,650. The Lease Deed required completion of construction within four years from execution, failing which extension could be granted on payment of additional premium. After obtaining Commencement Certificate in August 2007, the petitioner discovered pre-existing underground piles and sub-structures across the plot, which were not disclosed by MMRDA. Excavation and foundation work was delayed due to these obstructions and also because MMRDA undertook construction of an internal road abutting the plots, necessitating back-filling and post-monsoon resumption. The petitioner requested extension of time without premium in March 2008, but MMRDA did not respond. Meanwhile, in May 2008, the Government enhanced permissible FSI from 2.00 to 4.00, leading to allotment of additional built-up area aggregating 28,100 sq. mtrs against additional payment. This required revised plans and multiple statutory clearances (environment, height, high-rise committee) which took years. Construction of the initial built-up area up to the 7th floor was completed by 18th February 2014. MMRDA demanded additional premium for extension; a meeting was held in January 2014, and the petitioner submitted an undertaking to pay under protest, while also explaining the reasons for delay by letter dated 6th February 2014. The court took up the matter for final hearing and reserved judgment on 22nd January 2026. The judgment does not contain the final decision as the provided text is incomplete.
Headnote
A) Writ Petition - Challenge to Demand Notice - Mumbai Metropolitan Region Development Authority Act, 1974 - The petitioner assailed the Demand Notice dated 09.09.2014, contending that the levy of penalty/additional premium for delay in completion of construction was contrary to the terms of the Lease Deed and therefore arbitrary and illegal. (Paras 3)
Issue of Consideration
Whether the levy of penalty/additional premium by MMRDA for delay in completing construction was contrary to the Lease Deed and arbitrary
