SC asks Maharashtra Housing and Area Development Authority for status of FIRs on builders, surplus area, Legal News, ET LegalWorld – Legal Firms


The Supreme Court on Tuesday asked Maharashtra Housing and Area Development Authority (Mhada) to submit in three weeks details of the surplus area surrendered by builders in 246 housing development and redevelopment projects, and the status of FIRs registered by Mhada against builders up till August 2022.

The SC bench passed this order putting Mhada in a difficult situation as the authority had come to the SC challenging a Bombay HC order directing registration of FIRs against its officials by the Economic Offences Wing (EOW) for alleged collusion with builders leading to non-surrender of surplus area, which was to be utilised for providing housing to the needy.

Of all, only 133 developers surrendered surplus area

An order by an SC bench of Justices M R Shah and M M Sundresh seeking details of surplus area surrendered by builders and the status of FIRs in 246 projects has put Mhada in a bind. The agency had moved SC against an HC order directing FIRs against builders for collusion.

The Mhada Act came into force in 1976 to facilitate repair and reconstruction of old cess. A person, Kamlakar R Shenoy, had moved the HC with information obtained through RTI and showed that up to March 14, 2014, the Board had granted permission for redevelopment of 1,728 projects, of which, 379 developers have not surrendered constructed area admeasuring 1,37,332 square metres to Mhada.

The HC also found that only 133 developers have surrendered constructed components measuring 32,233 square metres and that Mhada/Board had registered FIRs against only a few. The HC had also noted that around 36 lakh square feet built-up area have been sold by the developers worth around Rs 40,000 crore.


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