High court protects builders: Why officials can’t stop construction mid-way

MUMBAI – In a significant move to protect the rights of property owners and developers, the Bombay High Court recently sent a clear message to government officials, do not overstep your authority by halting construction projects that are already well underway.

The ruling came after a housing official suddenly cancelled a “No Objection Certificate” (NOC) for a redevelopment project in the Tardeo area. By the time this order was issued, the developer had already built 10 out of the 16 planned floors. The court’s decision highlights a growing concern over how administrative power is used to disrupt large-scale investments without proper legal grounds.

The problem of mid-construction halts

The dispute began when a third party claimed they had a legal share in the land where the building was being constructed. Instead of going to a civil court to prove their ownership, the claimant approached a housing official. The official then issued a stop-work order, effectively bringing the massive project to a standstill.

The High Court bench, led by Justice Mr.Girish Kulkarni and Justice Miss.Aarti Sathe, noted that this has become a worrying trend. People are increasingly bypassing the court system and asking government officers to settle property disputes. The judges made it clear that a government officer does not have the power of a judge and cannot decide who truly owns a piece of land.

Protecting property rights

The court emphasized that once a project has progressed significantly. In this case, reaching the 10th floor, halting it causes massive financial loss and wastes valuable resources. Such “drastic orders” violate the constitutional right to property and the right to fair treatment.

“It is the duty of the officer to examine all issues and seek legal opinion before passing such orders,” the bench stated. They clarified that if someone has a problem with a property title, they must file a lawsuit in a civil court rather than seeking a quick fix from an administrative office.

A warning to officials

The court ultimately quashed the stop-work order after the housing authority agreed to withdraw it. While the judges chose not to fine the official in this specific instance, they issued a stern warning. In previous similar cases, the court has forced officials to pay fines as high as ₹5 lakh for misuse of power.

This ruling is seen as a victory for the real estate industry and homeowners awaiting redevelopment. It ensures that once a project is legally approved and construction begins, it cannot be easily derailed by administrative interference or private disputes.

Also read – Lodha and Sahana Group sign major deal for 10-acre Mumbai real estate project

Disclaimer – This article is for informational purposes only and does not constitute legal advice. While based on recent court events, readers should consult a legal professional regarding specific property or construction matters.

Source – ET Realty

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