Mumbai: A redevelopment project that began over a decade ago in Mazgaon has turned into a legal quagmire, with MHADA accusing the developer of defying official orders, failing to rehabilitate original tenants, and illegally selling flats to third parties.
FIR Filed Against Developer
The Byculla police have filed an FIR on May 16 against Shaad Realty and its directo Shadab Islam Qureshi, for cheating, criminal breach of trust and forgery. Police said Qureshi has secured anticipatory bail. "We are awaiting reports from other agencies before filing a chargesheet," said the investigating officer.
Project History and NOC Details
According to the FIR filed by Prahlad Walhuba Dhagude, 56, Deputy Engineer with the Mumbai Building Repairs and Reconstruction Board (MBRRB), the redevelopment of Motiwala Building, a cess property under MHADA, was originally approved in 2010. Developer M/s A.H. Construction was issued a No Objection Certificate (NOC) for the project along with a list of tenants eligible for rehabilitation.
Transfer to Shaad Realty
Over the years, the NOC was renewed multiple times, and in 2019, the project was transferred to Shaad Realty, which proposed a group redevelopment plan combining Motiwala Building and the adjacent Jani Building. Shaad Realty submitted over 70 irrevocable consent letters from residents and was granted a composite NOC by MHADA on February 4, 2019, later extended in August 2021.
Tenant Complaints and Allegations
However, on July 1, 2024, Shakir Shah and Fatema Shah, tenants listed in MHADA’s certified records for Motiwala Building, lodged a complaint with the Chief Officer of MBRRB.
They alleged that despite being allotted four flats (No. 302, 303, 501, and 902) in the redeveloped Shaad Residency, the developer neither handed over possession nor paid the mandatory transit rent during the redevelopment period.
Instead, the complaint states, Shaad Realty fraudulently sold or leased the flats to third parties, without obtaining consent from MHADA or the lawful tenants.
Developer’s Response Rejected
Two joint hearings were held on November 6, 2024 and March 6, 2025, during which Shaad Realty claimed they only held construction rights and that the responsibility for rent and rehabilitation lay with previous developers.
However, MHADA officials rejected this claim, noting that Shaad Realty is the current NOC holder and the sole entity responsible for fulfilling all redevelopment conditions including permanent rehabilitation and transit rent.
Occupancy Certificate and Jani Building Issues
As per official records, Shaad Realty has failed to obtain an Occupancy Certificate (OC) from the BMC for Shaad Residency. Moreover, tenants of the dilapidated Jani Building which was supposed to be part of the same redevelopment project have not yet been relocated or rehabilitated, despite the project being underway for over many years.
MHADA Directives Ignored
Following a detailed site inspection, MHADA submitted a report confirming that the disputed flats were either sold or rented to outsiders, and that the construction on-site had deviated from approved plans.
On April 24, 2025, the Chief Officer of MBRRB issued a formal order instructing Shaad Realty to Register permanent rehabilitation agreements with Shakir and Fatema Shah for flats 302, 303, 501, and 902, Hand over possession within 15 days, Pay all pending transit rent, with arrears. However, sources confirm that the developer has failed to act on any of these directives.
A copy of the registered agreements was also to be submitted to the MHADA office. However, instead of complying, Shaad Realty filed an appeal with the Vice President and CEO of MHADA, without taking corrective action.
According to the complaint, the developer continues to ignore the terms of the NOC, thereby defrauding both MHADA and the rightful tenants. As a result, MHADA directed the deputy engineer to lodge a police complaint.
Tenants Continue To Suffer
The Shah family, who were allotted four flats in the newly redeveloped Shaad Residency in Mazgaon, remain in a rented flat they are paying for out of pocket, even though they are legally entitled to both homes and transit rent since the redevelopment began in 2014.
"Nothing has moved since the FIR. We are still without our homes, and the flats meant for us have been sold off to others," said Fatema Shah, visibly frustrated with the continued inaction.
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Dilapidated Conditions Persist for Other Tenants
The situation has also left several original tenants of Jani Building living in unsafe, dilapidated conditions, despite the redevelopment work having been completed more than a year ago.
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