Bombay HC Orders Holdout Developers to Vacate Ghatkopar’s Parekh Market Premises, Clears Path for Redevelopment

The Bombay High Court has cleared the way for the redevelopment of the dilapidated Parekh Market complex in Ghatkopar (East), directing 15 holdout occupants, including the former developer, to vacate the premises by November 10, 2025. This landmark decision removes a significant legal roadblock, allowing the new developer, Ambit Life Style Homes LLP, to execute the redevelopment plan and provide modern, safe housing to the society’s members.

While redevelopment disputes often involve prolonged litigation, this case highlights the judiciary’s role in balancing the rights of holdouts with the broader public interest. By resolving the standoff, the court ensures that long-delayed projects gain momentum, benefiting residents living in unsafe and outdated structures.

 

Interim Relief Granted to Developer

Justice Sandeep Marne granted interim relief to Ambit Life Style Homes LLP, which was appointed by the Parekh Market Premises Co-operative Housing Society. The court was hearing a suit filed by Ambit Homes seeking enforcement of a 2022 redevelopment agreement. The interim relief allows the developer to proceed with redevelopment work while safeguarding the interests of affected residents.
 

Progress and Obstruction

Out of 88 occupants, 70 have already vacated the premises, and three of the five existing structures have been demolished following civic notices declaring them unsafe. However, redevelopment was delayed because Defendant Nos. 2 and 3 — former developer Kanaiyalal Madhavji Thakkar and his proprietary firm — refused to vacate 12 premises under their control.

The court observed that this obstruction, largely driven by the former developer, was preventing residents from accessing safer, modern housing while delaying the redevelopment process.
 

Developer’s Efforts and Compensation

Ambit Homes highlighted its commitment to smooth execution of the project, noting that it had already paid Rs 1.4 crore in hardship compensation and continues to pay Rs 27 lakh per month to displaced residents. The developer has also invested over Rs 10 crore in preliminary work and secured all statutory approvals, including the SRA Intimation of Approval (IOA) issued in August 2025.

These measures demonstrate the developer’s focus on both project readiness and the welfare of current residents, emphasizing responsible urban redevelopment practices.

 

Former Developer’s Claims Rejected

Kanaiyalal Thakkar had argued that he retained rights to exploit the remaining Floor Space Index (FSI) potential of the 3,578 sq. m. plot based on decades-old agreements. However, Justice Marne noted that Thakkar’s counterclaims had already been dismissed and upheld by the Supreme Court in 2014. The court rejected the claims as “completely baseless,” reaffirming the finality of the decree and clearing the path for redevelopment.

Court Observations on Redevelopment Dispute
 

The court described the case as a “classic redevelopment dispute” obstructed by a small number of holdouts. It observed that the main obstructor was the old developer, who hoped to further exploit the land’s potential, while residents of unsafe buildings were waiting for new homes. Justice Marne emphasized that unnecessary delays could result in “irreparable loss” to both the society and its members.
 

Balance of Convenience Favors Society

In assessing the balance of convenience, the court sided with the society and the new developer. Three buildings have already been demolished, and residents have vacated their homes, underscoring the urgent need to proceed with redevelopment. The decision ensures that both legal and practical considerations support the timely completion of the project.
 

Vacating Order and Execution

The court directed Defendants 2 to 16 to vacate their premises by November 10, 2025. Should they fail to comply, the Court Receiver is authorized to take possession with police assistance and hand over the property to Ambit Homes. Additionally, the court mandated that Ambit Homes pay transit rent to tenants of Defendants 2 and 3 and ensure their re-accommodation in permanent alternate premises post-redevelopment.
 

Court Concludes Objections are Pretexts
 

Justice Marne noted that the defendants’ objections, including claims of arbitration clauses and delayed membership petitions, were “mere pretexts” aimed at stalling the project. The court further stated that expectations of exploiting additional development potential could not justify indefinite delays. With this ruling, Ambit Life Style Homes is now legally cleared to proceed with construction, ensuring that residents of the Parekh Market complex finally gain access to safe, modern housing.

Redevelopment and Urban Renewal
 

This decision signals a broader shift in Mumbai’s redevelopment landscape, where courts are increasingly facilitating timely urban renewal while protecting residents’ rights. With legal hurdles cleared, Ambit Homes can now focus on executing the redevelopment efficiently, ensuring safety, modern amenities, and improved living conditions.


The Parekh Market redevelopment is expected to serve as a benchmark for handling similar urban projects in Mumbai, demonstrating the importance of clear legal frameworks, responsible developer conduct, and judicious oversight in transforming old and unsafe structures into livable, modern communities.