Bombay HC Pauses BMC Demolitions at Prabhadevi's Rustomjee Crown
The Bombay High Court has restrained the Brihanmumbai Municipal Corporation from carrying out further demolition of apartment foyers at the Rustomjee Crown residential complex in Prabhadevi until its next hearing. Justice Sandeep Marne also directed the project's developer to submit its formal reply to a lawsuit filed by flat owners by September 17.
The suit was brought by 246 plaintiffs representing roughly 140 flat owners who are challenging the civic body's enforcement drive, which commenced on August 24. Alongside seeking protection from demolition, the residents have sought Rs 1,000 crore in damages from developer Keystone Realtors Ltd, alleging breach of contract, misrepresentation, and fraud.
Rustomjee Crown consists of Towers A, B, and C, with Towers A and B standing 53 storeys tall with four apartments on each floor. Out of the 372 apartment owners across those two towers, foyers are present in nearly 95 percent of the homes. The BMC had issued notices to an initial batch of 186 flats and had already demolished eight foyers in five-bedroom apartments, with the civic action initially planned to span about a month.
According to the plaintiffs, the developer presented the foyer spaces as exclusive areas linked to individual apartments across marketing materials, apartment layout plans, cost sheets, and registered sale deeds. The residents stated that purchase amounts, stamp duty fees, and registration charges were all assessed on the combined square footage of the apartments and their respective foyers.
The suit details that the BMC inspected Towers A and B prior to issuing occupation certificates in 2025 and raised no objections regarding the foyers at that time. The dispute emerged only when Keystone Realtors applied for an occupation certificate for Tower C, leading civic officials to claim that the foyer spaces consumed excess floor space index.
Apart from the Rs 1,000 crore in compensation, the flat owners have petitioned the court to quash the BMC notices, direct the regularisation of the foyer spaces, and freeze the developer's unsold inventory to secure compliance with potential court directions.
The Rustomjee Group has refuted any wrongdoing regarding the project. A spokesperson for the developer stated after the demolitions that the construction was undertaken in accordance with plans sanctioned and approved by competent authorities under the 1991 Development Control Regulations, adding that the project had secured an occupation certificate and continues to cooperate with authorities.
