Bombay High Court quashes PMC stop-work notice, orders immediate Occupation Certificate for completed Wing-D of Rajgruhi Residency
A ₹1,500 per sq.ft. dispute turns into a two-year nightmare What began as a private argument over sale price between the original landowner Wellbuild Merchants Pvt Ltd and its appointed developer M/s Atria Constructions ended up holding 80 ready flats and dozens of home-buyers hostage. Today, in a 62-page judgment, the Bombay High Court tore into the “gross abuse of process” and ordered the Pune Municipal Corporation to immediately grant the Occupation Certificate for the fully completed Wing-D of Rajgruhi Residency.
The root of the fight: ₹8,000 vs ₹9,500 per sq.ft. Under the 2021 Development Agreement, Atria was required to achieve an average minimum sale rate of ₹8,000 per sq.ft. (saleable area = RERA carpet + 35%). By 2024, Wellbuild claimed the market rate in the area had jumped to at least ₹9,500–₹10,000 and accused Atria of planning to sell the remaining flats at lower rates or through benami deals to quickly exit the project, thereby short-changing Wellbuild’s profit share.
The court-recorded undertaking that should have ended the matter On 22 November 2024 (just three days ago), a Division Bench of the Bombay High Court recorded a solemn undertaking from Atria Constructions that it will not sell a single remaining flat in Wing-C or Wing-D below ₹9,500 per sq.ft. and will give Wellbuild 30 days’ first-right-of-refusal on every fresh sale. The Division Bench refused to stop construction or sale of flats.
Yet Wellbuild kept blocking Despite the binding court undertaking, Wellbuild continued to lodge complaints with PMC, MPCB, and the Environment Department, insisting the Occupancy Certificate must not be released until arbitration is over — effectively trying to paralyse a 100% completed building for years.
The High Court’s blistering response today The bench of Justice G S Kulkarni and Justice Arif S Doctor called it exactly what it was. Here are the court’s strongest observations (verbatim extracts):
- Para 9: “It is at this stage, a very peculiar dispute has arisen, which appears to be wholly between Wellbuild and the petitioner. The flat purchasers of Wing-D are sandwiched between these disputing parties. It also appears that the municipal machinery is being used to settle these private disputes.”
- Para 10: “The following discussion on the facts would shed light on such factual conspectus.”
- Throughout the judgment (especially after narrating the 22 Nov 2024 Division Bench order): The court repeatedly stressed that once a ₹9,500 floor price was guaranteed by a court-recorded undertaking and the Division Bench had refused to stop work, Wellbuild had no business running to statutory authorities to block a completed tower.
Key findings of today’s judgment
- Wing-D is an independent building with separately sanctioned plans (13 Oct 2021); construction 100% complete since Dec 2023.
- Storm-water drain realignment (the only pending civic issue) is already 70% done under PMC’s own work order.
- Private arbitration disputes and profit-sharing fights cannot be allowed to hold innocent third-party buyers to ransom.
- The Stop Work Notice dated 10 Dec 2024 is quashed.
- PMC directed to process and grant Occupation Certificate for Wing-D immediately (within weeks).
Relief at last for 80 families The 49 petitioners — home-buyers who paid full money years ago — along with other flat owners in Wing-D can finally move into their homes before the end of 2025. The court has ensured that a ₹1,500 per sq.ft. rate war between two builders will no longer punish ordinary citizens.
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