In a significant move to protect residents caught in redevelopment delays, the Bombay High Court has issued a firm directive to the Maharashtra Housing and Area Development Authority (MHADA). The court has ordered the housing body to swiftly address and resolve a backlog of complaints concerning the non-payment or delayed payment of transit rent to eligible individuals.
Court Mandates Time-Bound Resolution Through Special Cells
The bench of Justices Girish S Kulkarni and Aarti A Sathe passed this order in January 2026 while hearing a plea filed by over 60 petitioners. These residents had been deprived of their legally mandated transit rent by developers for more than two years, causing severe financial hardship.
MHADA informed the court that it has already constituted special cells specifically to redress such transit rent-related grievances. The High Court has now mandated that these special cells must operate in an effective and time-bound manner. The authority has been instructed to address and resolve complaints within an initial period of 15 days, which can be extended by another 15 days if strictly necessary and in accordance with the law.
Priority for Vulnerable Groups and Authority for Drastic Action
The court's order carries a crucial humanitarian directive. It states that utmost priority must be given to applicants who are seriously ill or are senior citizens. This provision aims to shield the most vulnerable residents from the distress caused by financial uncertainty during redevelopment.
To ensure compliance, the court has empowered MHADA's special cells with significant authority. In cases of non-cooperation from stakeholders, including developers, the cells can pass "drastic orders" with the concurrence of MHADA's Competent Authority. These orders, which could include measures like canceling No-Objection Certificates (NOCs) or issuing stop-work notices, will be deemed as orders passed by MHADA itself. The court emphasized that the formation of these cells should not lead to further litigation but should ensure disputes are resolved in the true spirit of the housing legislation.
Understanding the Transit Rent Mechanism and Common Complaints
Transit rent is a critical financial support mechanism in Mumbai's dense urban landscape. It is the payment made by a developer or developing authority to eligible residents who vacate their premises to allow for building redevelopment or rehabilitation. This rent is supposed to be paid regularly until a permanent alternate accommodation is provided to the displaced residents.
An affidavit filed by an executive engineer of the Mumbai Building Repairs and Reconstruction Board (MBRRB), a unit of MHADA, outlined the common complaints. These include complete non-payment of rent by developers, disputes over the rent amount and interest on pending sums, non-payment of annual increases, and complications when a new developer takes over a project from an old one. The affidavit also noted disputes regarding rent for the Covid-19 period.
MHADA listed the remedial steps it can take, such as issuing show-cause notices, conducting joint hearings, acquiring property, canceling NOCs, and even filing FIRs for criminal breach of trust against defaulters. The Bombay High Court, after noting these mechanisms, disposed of the pleas, placing its trust in the newly streamlined process to deliver justice to waiting residents.
