Bombay High Court Issues Contempt Notice to MBMC for Defying Interim Order
The Bombay High Court has issued a notice to the Mira Bhayandar Municipal Corporation (MBMC) and its commissioner for allegedly disobeying a judicial interim order that protected a developer from adverse action, purportedly at the behest of a local MLA.
A bench comprising Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad expressed strong displeasure over the civic body's conduct while hearing a contempt petition filed by M/s Grandbuild Land Developers LLP. The court questioned why the administration complied with an MLA's directions while disregarding an order issued by a Division Bench.
Senior advocate Birendra Saraf, appearing for the developer, submitted that despite an interim protection order issued on April 27, the civic body issued a communication directing that construction work be stopped or permissions would be cancelled. Although the developer requested MBMC to withdraw the stop-work notice and comply with court directives, the communication led the Maharashtra Real Estate Regulatory Authority (MahaRERA) to place the project in abeyance, freeze the developer's bank accounts, and bar the execution of sale deeds.
The bench observed that the situation worsened because MahaRERA took action without being informed about the High Court's protection. The judges noted that MBMC had previously sought time to file a reply, during which the court had expressly directed that no adverse orders or precipitate actions be taken.
MBMC Commissioner Radhabinod Aribam Sharma appeared before the bench via video conference and offered to withdraw the orders and tender an apology, stating he was unaware of the interim order. The court refused to close the contempt proceedings immediately, describing the matter as a gross case, but stated that the commissioner's affidavit and apology would be considered.
The bench directed MBMC to withdraw all stop-work communications within three working days. It also ordered MahaRERA to unfreeze the developer's bank accounts and remove adverse abeyance messages relating to the project from its website within five days.
The underlying dispute involves the developer's multi-storey residential project, "Windsor", and Reservation No. 138, which is earmarked for a primary school and playground under development regulations. The developer stated it transferred 1,066.42 square metres of land to MBMC in February 2023 and agreed to construct a school building with over 2,000 square metres of built-up area. It alleged that the civic body later revised its demand to 2,000 square metres of land following a complaint by a local MLA.
