The Supreme Court has set aside a Madras High Court order directing the Chennai Metropolitan Development Authority (CMDA) to remove alleged unauthorised constructions and deviations at the Indira Arcade building in Chennai. The Court held that the High Court had failed to consider its own earlier order protecting the appellants from coercive action while the issue of regularisation remained pending.
The judgment was delivered on August 22, 2026, by a Bench comprising Justice Ujjal Bhuyan and Justice Atul S. Chandurkar.
Background of the Case
The dispute concerns portions of the Indira Arcade building. The appellants had acquired parts of the ground floor to the third floor and a portion of the fourth floor, while the first respondent occupied a portion of the second floor.
The dispute related to alleged excess construction, unauthorised construction and deviations in the building. Earlier, proceedings before the Madras High Court resulted in directions concerning the removal of certain violations.
The appellants subsequently applied for regularisation under Section 113-C of the Tamil Nadu Town and Country Planning Act, 1971. The application remained pending amid separate litigation concerning the validity and scope of regularisation provisions.
In September 2023, the High Court had directed that no coercive action be taken against the appellants until the Supreme Court decided the pending issues concerning regularisation.
However, on April 28, 2025, another Division Bench directed the CMDA to remove the unauthorised portions, holding that the pendency of a regularisation application did not prevent action. The appellants challenged that order before the Supreme Court.
Supreme Court's Observation
The Supreme Court noted that the CMDA was bound by the earlier High Court order dated September 27, 2023, which had restrained coercive action while the regularisation issue was pending before the Supreme Court.
The Bench observed:
“The issue pertaining to regularisation of unauthorised constructions not having been finally resolved and the parties having been directed to await decision in the pending proceedings, in our view, the High Court was not justified in issuing a direction to the CMDA to demolish the unauthorised constructions/deviations within a period of eight weeks from the date of its order.”
The Court further held that the later High Court order had resulted in inconsistent directions concerning the same subject matter and was contrary to the earlier order.
Decision
The Supreme Court set aside the Madras High Court's April 28, 2025 order. It directed the appellants, CMDA and the concerned parties to remain governed by the September 27, 2023 order.
The Court also directed that status quo be maintained regarding the construction at the building until the pending regularisation issues are decided.
The civil appeal was accordingly allowed, with the parties directed to bear their own costs.
Case Details
Case Title: G. Sathyanarayana Bothra & Others v. M.D. Lokeswari & Another
Case Number: Civil Appeal No. 10045 of 2026
Judges: Justice Ujjal Bhuyan and Justice Atul S. Chandurkar
Decision Date: August 22, 2026
