Bombay HC allows Chembur society to terminate stalled redevelopment deal, appoint new developer

The Bombay High Court (Justice Arun Pedneker) has allowed Maruthi Co-operative Housing Society in Chembur to proceed with its termination of a redevelopment agreement with Tridhaatu Group, as reported by the Free Press Journal on 18-19 October 2026. The court also cleared the society to invite fresh proposals, demolish the incomplete structure and appoint a new developer.

Background of the case

The development agreement for the society's 'Shobha' building was signed in July 2013. All 22 member families vacated in mid-2014, expecting to return within 24 months. The completion deadline passed in January 2018. According to the report, the developer built only a bare structure up to the 10th floor, although approval was for eight floors, and then abandoned the site.

The society issued a show-cause notice in March 2026 and then terminated the agreement. Transit rent (the monthly rent paid to members living elsewhere during construction) was reported to be over Rs 7.35 crore in arrears as of April 2026. Most members are very senior citizens. The developer did not appear, so the matter proceeded without its side, and the court appointed an Amicus Curiae (a lawyer who assists the court).

What the court said

The court granted interim protection to the society, saying such measures were needed to preserve the subject matter of arbitration and to prevent the developer from creating third-party rights over the property. It also noted that pending statutory dues could lead to attachment of the society's land. The report does not name specific statutory sections, and no case number was available.

What this means for housing societies

• A prolonged breach of the completion timeline, with unpaid transit rent, can support a society's decision to terminate a redevelopment agreement, though each case turns on its own agreement and facts.
• Societies should document each step: missed deadlines, show-cause notices, termination and rent defaults, since courts look at this record.
• Because redevelopment agreements usually contain arbitration clauses, societies may need to seek interim court protection to stop a developer from creating third-party rights or encumbrances on the land.
• Committees should check for unpaid statutory dues on the property, which can put society land at risk of attachment.

Societies facing a stalled project should review their development agreement's termination and arbitration clauses, and obtain legal advice before issuing notices or inviting new developers. The full judgment text was not available at the time of writing.