Bombay HC Rules MHADA Can Revise Kothrud Flat Price But Blocks Immediate Eviction
On June 26, the Bombay High Court upheld the Maharashtra Housing and Area Development Authority's (MHADA) right to revise the price of an allotted flat in Pune's Kothrud area, while protecting the resident from immediate eviction.
Justice M.M. Sathaye partly allowed a petition filed by the Pune Housing and Area Development Board, giving the allottee, Vithal Ladkat, a final opportunity to clear his outstanding dues.
The case dates back to July 1993, when Ladkat was allotted a flat in the Kothrud area under the state government's 2% discretionary quota. Although he took possession of the property immediately, MHADA only communicated the final price of Rs 5.51 lakh in May 1995.
Ladkat disputed this calculation, arguing that the price should be approximately Rs 1.41 lakh, though he expressed willingness to pay the lawful amount. The dispute led to a 2006 appellate order that reduced the payable amount and set aside his eviction, which MHADA subsequently challenged in the High Court.
In the ruling, Justice Sathaye clarified that allotments made under the government's discretionary quota do not exempt allottees from paying the legally due price and interest under the MHADA Act. The court noted that because the flat was constructed in 1987 but only allotted in 1993, the value of the property could not be expected to remain unchanged due to market appreciation over those years.
However, the High Court also found MHADA at fault for waiting nearly two years after the initial allotment to demand the final price. Consequently, the court ruled that the housing board could not claim interest for that two-year delay, restricting the applicable interest to 9% per annum starting from May 1995.
Because Ladkat has resided in the Kothrud flat since 1993, the court declined to order his immediate eviction. Instead, the court directed him to pay a recalculated outstanding amount of Rs 3.42 lakh within two weeks. If Ladkat fails to clear this amount within the stipulated time, MHADA is permitted to initiate eviction proceedings.
