Motilal Nagar Redevelopment: SC clears way for Rs 36,000-crore project undertaken by Adani Group, rejects residents' appeal

Indian Express

15 hours ago

The Supreme Court on Monday dismissed a special leave petition (SLP) filed by residents of Motilal Nagar colonies in Goregaon (West), clearing the way for Maharashtra Housing and Area Development Authority-appointed developer Adani Properties Pvt Ltd to go ahead with the Rs 36,000-crore redevelopment project.
The residents had approached the Supreme Court challenging the Bombay High Court order of July 25 that refused their review plea. The review plea was against the March 2025 high court order that gave MHADA a go-ahead to redevelop Motilal Nagar, spread over 143 acres in Western suburb, through a construction and development agency (C&DA).
Adani Realty Group is also undertaking the Dharavi Slum Redevelopment project in central Mumbai. The Adani group had submitted the highest bid of nearly 36,000-crore for the Motilal Nagar project.
Earlier this month, the MHADA signed a Memorandum of Understanding (MoU) with Adani Group to execute the project.
The project is scheduled to be completed in seven years. As per the MoU, the developer will hand over 3.97 lakh square metres of developed area to MHADA, adding nearly 33,000 houses to the housing stock of MHADA.
A bench of Justices Vikram Nath and Sandeep Mehta of the Supreme Court passed an order on SLP by residents on Monday.
Solicitor General Tushar Mehta for MHADA argued that the land was owned by the authority and the state government has given a special project status for the redevelopment. He argued that it will take a long time to avail consent of all residents in the colony, and it would lead to further delay in execution of the project and eligible residents were to get flats of nearly 1,600 square feet built up area.
The project involved Motilal Nagar 1, 2 and 3 spread over 143 acres and it will rehabilitate nearly 3,700 tenements and is likely to be executed over a total area of 5.84 lakh square metres. As per project, the rehabilitated eligible dwellers will get 1,600 sq ft (built up area) flats and there will be 987 square metres of commercial space to be provided for non-residential tenants.
In March, this year, a bench of Chief Justice Alok Aradhe and Justice Bharati H Dangre had disposed of a PIL seeking action against alleged illegal constructions on the said land. The HC had said that the project, considering its nature, may not be possible to be undertaken by individual operative housing societies or associations formed by the occupants. Aggrieved by this, the residents had filed a review petition in the HC.
The residents had argued that the society ought to be allowed to self-develop the land as per the state policy and Rule 33(5)(2) of the Development Control and Promotion Regulations (DCPR), provided the society can appoint a developer of its choice. Moreover, it was argued that redevelopment undertaken by private developers would require consent of 51% of the members of the society, even if MHADA's NOC is available.
However, MHADA argued that the said grounds were raised by petitioner during earlier proceedings and HC had passed its verdict considering all aspects and recognised the authority's right as the owner of the property, to redevelop the land through private builders by inviting tenders.
However, the HC on July 25 rejected the review plea, prompting the residents to approach the Supreme Court, which it rejected on Monday.