Mumbai housing society wins 24-year battle, MHADA ordered to refund Rs 1.22 crore

In a 24-year legal battle, a Mumbai housing society has won the right to receive Rs 1.22 crore in refunds from the Maharashtra Housing and Area Development Authority (MHADA). The National Consumer Disputes Redressal Commission ruled that MHADA could not unilaterally revise the agreed financial terms of a land lease agreement. The dispute arose from a plot in Oshiwara, where the society was tasked with constructing a municipal market and delivering it to the Brihanmumbai Municipal Corporation (BMC) free of cost.

The commission dismissed a demand for Rs 4.68 crore, primarily for interest, stating that the authorities could not change the financial terms without the society's consent. The society paid Rs 1,09,50,015 under protest in February 2016, and the commission directed MHADA to refund the remaining Rs 12,79,084, totaling approximately Rs 1.22 crore. The refunds will accrue simple interest at 6% per annum until the actual payment is made.