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Bombay HC Quashes MMRDA Penalties, Orders ₹731 Crore Refunds in BKC Lease Dispute

The ruling resets timelines to the Commencement Certificate to curb how the authority enforces BKC lease terms.

Overview

  • The division bench, which ruled Wednesday, struck down MMRDA demand notices and directed refunds totaling ₹731.13 crore to four lessees.
  • The court named the recipients and amounts as Reliance Industries ₹646.77 crore, Sunteck Realty ₹52.80 crore, Indian Newspaper Society ₹22.63 crore, and Shree Naman Hotels ₹8.93 crore.
  • The judges refused MMRDA’s request to pause the order and gave the authority 90 days to return the money.
  • The bench said delays flowed from slow statutory approvals, so construction time should run from the issue of a Commencement Certificate rather than from the lease date.
  • In Reliance’s case, the court noted the firm paid ₹646.77 crore under pressure while seeking occupancy in 2019 and that MMRDA later sought another ₹1,116.83 crore, findings that led the judges to call the recoveries arbitrary and coercive.