Bombay High Court upholds CIDCO's stop work notice

The Bombay high court has upheld a stop work notice issued by CIDCO for a construction project in Ulwe, Mumbai. The court dismissed a petition by Bhosale Homes, which challenged the notice from 2016. Justices Ajay Gadkari and Kamal Khata ruled that disputes over land ownership must be settled in civil court. The court stated that a development agreement is not valid when land title is disputed. This means the ongoing construction work by Bhosale Homes was correctly halted by CIDCO, as questions about land ownership were still unresolved. The decision affects both future buyers and lenders involved in funding the project. Bhosale Homes claimed they had rightful possession of the land since 2008 and received construction permission in 2014. However, CIDCO's position is that the land belongs to a Trust, which was established after the original land was acquired for development. The builder's representatives argued that stopping the work would harm buyers who had already booked flats and commercial spaces. Despite the concerns raised by Bhosale Homes regarding their financial losses, the court sided with CIDCO. The judges emphasized that the stop work notice was justified, but Bhosale Homes can still pursue their case in civil court for a resolution on land ownership.