Bombay HC clears way for cluster redevelopment of Bandra Reclamation, Adarsh Nagar MHADA layouts

The bench observed that the petitioner societies “do not have an absolute or unfettered right over the subject land” and their members are “being more than adequately compensated with a rehabilitation area of more than twice the area of their present tenements.”

The High Court ruling has cleared the way for redevelopment of a 34.33-acre plot at Adarsh Nagar in Worli and a massive 98.27-acre area at Bandra Reclamation, which have seen little to no development over the years. Adani Properties has emerged as the highest bidder for the redevelopment of the two prime plots.

Last year, the Bombay HC had cleared similar cluster redevelopment of 143-acres of Motilal Nagar MHADA layout in suburban Goregaon, which is being carried out by Adani and the Supreme Court had upheld the decision

After the petitioners sought protection from the implementation of the verdict to approach the Supreme Court in appeal, the government lawyer assured the court that the work order will not be issued for four weeks. In May, the High Court had refused to stay the decision, observing that the tender process would take some time.

The state, through the April 25 and December 15, 2025, Government Resolutions (GRs), had framed a policy to undertake integrated or cluster redevelopment of MHADA layouts of 20 acres or more in Greater Mumbai and suburban areas. The policy provides for redevelopment of the two layouts through a single private construction and development agency instead of multiple housing societies redeveloping their structures separately.

The High Court was informed that the state government, through MHADA, constructed 56 colonies between 1950 and 1960 for “affordable housing” for people from the Middle Income Group (MIG) and Lower Income Group (LIG). These colonies now comprise 5,000 housing societies, some of whose structures have become dilapidated.

Senior Advocates Y S Jahagirdar, Zal Andhyarujina and others, representing the petitioner housing societies, argued that the government resolutions were in “complete breach” of Article 300A of the Constitution, which protects citizens against arbitrary deprivation of property, and claimed the petitioners were “virtually being divested of their properties without following the due process of law.”

They claimed the petitioners were “forced to be a part of the cluster development”, depriving them of independent redevelopment rights under the Development Control and Promotion Regulations (DCPR). They also claimed the GRs compelled mergers without due process, protected neither rights, areas nor funds, dispensed with owners’ individual consent, gave MHADA and the developer a “free hand”, and lacked “public interest”.

Opposing the pleas, Advocate General Milind Sathe for the Maharashtra Government and Senior Advocates Darius Khambata and Ravi Kadam for MHADA argued that the redevelopment will be in accordance with the Development Control and Promotion Regulations and applicable law and developer is bound to obtain consent of 51 % of the societies.

Justice Karnik, who authored the 246-page judgment for the bench, rejected the petitioners’ contention that the developer’s gain was at the cost of MHADA’s share and observed that the highest bidder had quoted a premium of Rs. 1847 crore against the Rs. 1817 crore benchmark for the Bandra Reclamation project and Rs. 794 crore for Adarsh Nagar against the Rs. 768 crore benchmark.

It added that there was “nothing to indicate” that the decision was “patently arbitrary” or “not in larger public interest,” and that the GRs in question did not offend any statutory provision. Refusing to interfere in a matter of policy, the bench observed that the “integrated redevelopment substantially enhances rehabilitation entitlement of occupants” and “overall quality of life, safety standards, and civic infrastructure.”