Bombay HC Bars Redevelopment-Based Eviction, Protects Tenant Possession in Bandra Project
Court Says Arbitration Cannot Override Rent Control Safeguards in 60-Year-Old Building Redevelopment
The Bombay High Court on August 11, 2025 dismissed a Section 9 arbitration plea filed by Elite Housing LLP, ruling that tenants in a dilapidated Bandra West building cannot be evicted or compelled to sign Permanent Alternative Accommodation Agreements (PAAAs) through arbitration when their statutory possessory rights remain intact under the Maharashtra Rent Control Act, 1999.
The dispute arose after the developer—appointed under a 2024 society resolution with 72% approval for cluster redevelopment over a 3,200 sq. m. plot (2.7 FSI)—argued that refusal by tenants Ritesh Haldar and another to sign PAAAs obstructed transit rent and rehabilitation for 150 residents, despite a C-1 structural audit confirming collapse risks.
The tenants argued that redevelopment cannot become a backdoor eviction route, stressing that their rights flow from long-term possession since 1985, not ownership, and that arbitration cannot bypass rent-control due process.
The High Court agreed, affirming that possession-based tenants must be included in redevelopment, and interim orders cannot be used to seize control of flats or force signatures via a court receiver. Citing Shaha Ratansi Khimji & Sons (2024), the Court held that transit accommodation itself is a protected right, especially in Mumbai’s tenant-majority clusters.
The Court distinguished this case from Symphony CHS (2025)—where non-cooperative members could be overruled after statutory notices—by noting that statutory tenants hold a higher level of pre-existing protection that cannot be overridden by redevelopment timelines.
The ruling directs the developer to individually execute PAAAs within 45 days, pay ₹25,000 monthly transit rent, secure 70% overall consent (including 50% from tenants) before demolition, and pay ₹75,000 costs to the tenants’ rehab fund. MahaRERA must also conduct quarterly compliance audits.
The judgment strengthens tenant-inclusive redevelopment norms across Mumbai’s 1,100+ cluster projects, limiting arbitration misuse and prioritizing occupancy rights over commercial pressures.
