Redevelopment – Plight of Tenants – Coercive demand of property tax for failure of Developer to obtain OC

Respondent no.3 Raj Realtors Construction Company (Developer) purchased  the plot no.542 TPS III, Mahim, from Mumtaj and others vide conveyance deed dated 15.12.1986.    The petitioners were the tenants of said tenements.

The property comprised of three chawls with nine shops and nine tenements built in 1946.    The suit of the Developer for possession was settled with the petitioners by consent terms.

As per the consent terms, the petitioners were given possession of the shops in the front wing with the assurance of Occupation Certificate once the rear wing was completed.   BMC did not give OC because MHADA had not granted NOC.   However, the Developer failed to secure OC for the shops.

As a result, the BMC did not provide water & sewerage facilities to the petitioners but charged 150% of the normal property tax.  Final Notice for Rs.5,49,869.60 was given to the petitioners.

HELD that the BMC and MHADA, instead of refusing NOC or OC for rear premises, have denied NOC/OC to the front premises of the petitioners.   Without such occupancy, the petitioners cannot be held responsible for higher taxes.  The nexus between MHADA, BMC and the Developer is apparent. Directions to issue NOC and OC to the petitioners, reconcile the payments and conduct an inquiry against erring officials.

Judgment dated 13.8.2024 of the Bombay High Court in W.P.No.185 of 2000 of T.J.Thomas  and others Vs.   Municipal Corporation of Greater Bombay and others with connected writ petition.