The Bombay High Court has granted relief to Ambit Life Style Homes LLP, the developer appointed for reconstructing the aging Parekh Market property in Ghatkopar (East). Justice Sandeep V. Marne dismissed objections raised by the former developer, who had refused to vacate several units and claimed lingering rights over the plot’s Floor Space Index (FSI) potential.
Background
The case stems from a long and tangled redevelopment saga. Parekh Market, a cluster of five old buildings—Wings A to E—was built decades ago by different developers, including M/s. Shri Padmanabh Builders and Kanaiyalal Madhavji Thakkar, the latter now listed as Defendant No. 2 in the case. Over the years, three of the five buildings were declared unsafe and demolished. Out of 88 total occupants, 70 had already vacated, but the remaining few—mainly the old developer and his tenants—refused to move out.
Ambit Life Style Homes, the new developer, had entered into a registered Development Agreement with the housing society in November 2022. However, despite valid approvals from the Slum Rehabilitation Authority and payment of over ₹1.4 crore in monthly hardship compensation, the project remained stalled due to continued resistance from the earlier developer and a handful of tenants.
Court’s Observations
Justice Marne took a firm view of the matter. “This is a classic case of a redevelopment project held hostage by a few obstructionists,” he remarked, adding that the “expectation of the old developer to further milk the development potential” could not outweigh the legitimate interests of residents waiting for new homes.
The bench examined the history of litigations between Padmanabh Builders and Defendant No. 2, noting that the old developer had already lost his claim to exploit the remaining FSI in earlier proceedings. The court recalled that his counterclaim for ownership rights was rejected in 2006 as time-barred, a decision later upheld by both the Division Bench and the Supreme Court. “That litigation has attained finality,” the judge observed, rejecting the argument that pending writ petitions regarding the conveyance deed could still give Defendant No. 2 a foothold.
The court also noted that the tenants of the old developer were not opposed to redevelopment, provided they were assured of transit rent and alternate premises after construction. The only real obstruction, Justice Marne held, came from Defendant Nos. 2 and 3—the previous developers themselves—who continued to occupy just four commercial units while blocking progress for over 80 families.
Allowing the interim application, the High Court granted a temporary injunction directing the remaining defendants to vacate the premises. It also empowered the Court Receiver to take possession if the occupants refused to comply.
Case Title: Ambit Life Style Homes LLP vs Parekh Market Premises Co-operative Ltd. & Ors.
Case Number: Interim Application (Lodg.) No. 30513 of 2025 in Suit (Lodg.) No. 30486 of 2025
