Bombay HC Upholds CIDCO’s Stop-Work Order on Ulwe Project Over Land Dispute

Mumbai: The Bombay High Court has dismissed a petition by Bhosale Homes, challenging the 2016 stop-work notice issued by CIDCO for its construction project in Ulwe, Navi Mumbai. The court ruled that when land ownership is under dispute, a development agreement alone cannot justify construction.

HC Sides with CIDCO Over Land Dispute

A division bench of Justices Ajay Gadkari and Kamal Khata ruled that CIDCO was correct in halting construction since the ownership of the land in question was contested. The City and Industrial Development Corporation (CIDCO) had issued the stop-work order, citing that the land was allotted in 2012 to Sir Mohammed Yusuf Trust under the 12.5% scheme for project-affected persons (PAPs).

Builder’s Argument Rejected

Bhosale Homes, represented by senior counsel Abhay Khandeparkar, argued that they had been in possession of the land since 2008 and had received permission to build in 2014. They stated that they had already invested crores in the project and that the stop-work order would negatively impact homebuyers and financial institutions.

However, CIDCO’s senior counsel G S Hegde countered that the builder had no rightful claim to the land, and their development proposal had already been rejected.

HC Grants Liberty to Approach Civil Court

The HC, dismissing the petition, ruled that issues of land ownership must be decided in a civil court and not on grounds of arbitrariness. While the stop-work notice remains valid, the builder still has the option to challenge the ownership dispute in a lower court.

This verdict reinforces the importance of clear land title verification before initiating real estate projects, especially in highly regulated zones like Ulwe under NAINA (Navi Mumbai Airport Influence Notified Area).