PUNE, 23 NOV. The Bombay High Court has severely criticized and reprimanded the Pune Municipal Corporation (PMC) for its functioning, stating that the case represents an "abuse of power for personal gain." The court’s stern remarks were made in connection with an arbitrary stop-work notice issued to a housing project, which caused significant delays and hardship for numerous homebuyers.
Stop-Work Order Quashed
A division bench of Justices Girish Kulkarni and Arif Doctor quashed the 'stop-work notice' issued by the PMC, observing that the facts clearly indicate a misuse of the Municipal Corporation's machinery by one developer to gain an upper hand over another. The court further noted that the PMC officials collaborated with the developer in this misuse for personal benefit, causing unnecessary suffering to homebuyers awaiting possession of their flats. The court imposed a fine of ₹5 lakh on the concerned PMC officials and a penalty of ₹25 lakh on the private developer, M/s Welbuild Merchants Pvt. Ltd.
49 Homebuyers Filed Petition
The ruling came in response to petitions filed by M/s Atria Constructions, the developer of Towers 'C' and 'D' of the Rajgruhi Residency Project in Pune, and 49 individuals who had purchased flats in Tower 'D' and were denied the Occupancy Certificate (OC) following the arbitrary stop-work order.
Delivering the verdict on the petitions, the court made strong remarks against the PMC’s conduct. The bench commented that the manner in which Welbuild, despite having good business relations with the petitioner, Atria Construction, misused the official machinery of the PMC, has "shocked our conscience."
Stop-Work Notice Issued for Another Developer's Benefit
An unusual and disturbing fact emerged during the case: while Towers 'A' and 'B', constructed by Welbuild, were completed and possession was handed over some time ago, a private dispute escalated between Welbuild and Atria regarding the remaining towers. Subsequently, some external parties, in collusion with Welbuild, filed complaints against Atria. As a result of these complaints, the PMC issued the stop-work notice to Atria.
In its order, the court observed that almost all flats in Tower 'D' were sold under a plan sanctioned in December 2023 for 80 units. Despite this, the project was prevented from obtaining the Occupancy Certificate due to objections raised by individuals who had no actual connection or standing in the project. The court’s decision validates the developer and homebuyers' stance and serves as a strong cautionary note against official corruption and the misuse of regulatory powers in the construction sector.
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