In a scathing interim order that lays bare what appears to be deep-rooted systemic rot in Mumbai’s urban planning and slum rehabilitation machinery, the Bombay High Court has accused senior officials of the Slum Rehabilitation Authority (SRA) of colluding with a developer linked to prominent real estate figure Shahid Balwa to encroach on land reserved for the expansion of the Worli Sewage Treatment Plant (STP/WWTF) — a critical public infrastructure project essential for the city’s sanitation and public health.
The order, delivered on February 9, 2026, by Justices G. S. Kulkarni and Aarti Sathe in Writ Petition (L) No. 936 of 2026, describes a “murky” and “dubious” situation involving the suppression of key communications, issuance of allegedly illegal permissions, and a “systematic design” to deprive the Brihanmumbai Municipal Corporation (BMC/MCGM) of reserved land for its Worli WWTF expansion.
The petitioner, Worli Urban Development Project LLP (formerly known as Lokhandwala DB Realty LLP), is undertaking a large-scale slum rehabilitation scheme in Worli on municipal land (C.S. No. 17/47 pt, G/S Ward, off Dr. E. Moses Road). The project involves redeveloping several slum societies (Jeejamata/Jivanjyot, Shree Vivekanand Nagar, Veer Jeejamata Nagar, and Mata Ramabai Nagar CHS) into a planned township with rehabilitation and sale components.
However, a contiguous portion of this land — originally around 27,698 sq m (later apparently reduced to ~17,756 sq m) — is reserved in the Development Plan specifically for the expansion of the existing Worli STP, a vital sewage treatment facility facing acute space shortages amid ongoing upgrades.
BMC’s Repeated Warnings Ignored Senior BMC officials, including the Chief Engineer (Development Plan), raised alarms as early as December 26, 2024, informing the SRA that the developer was demolishing boundary walls and commencing piling/construction (including transit camps) on the reserved STP land. Follow-up letters on June 27, 2025, reiterated demands for demarcation and immediate handover to prevent encroachment on this public asset.
These communications were received by SRA’s Deputy Chief Engineer Rama Mitkar and Executive Engineer D. B. Patil, yet the court found they were systematically suppressed — never disclosed in correspondence with the developer, nor acted upon. Instead, on April 11, 2025, Patil granted approval for seven multi-storey transit camp buildings (temporary structures to house slum dwellers during redevelopment), even incorporating Condition 17 that implicitly permitted construction on the reserved portion (restricting only the last 25% of saleable area until demolition).
One transit building (No. 1) was completed and occupied by slum dwellers; construction on No. 2 had begun — creating a fait accompli that could render the STP expansion impossible for years, as transit camps often persist long-term.
Court’s Prima Facie Findings: Collusion and Systemic Rot The bench formed a “clear impression” of connivance between the SRA officers and the developer to favor private interests over public infrastructure. Key observations include:
- Suppression of BMC objections to enable “illegal” construction.
- Issuance of permissions in deliberate disregard of the reserved status.
- A “systematic design” to defeat the public reservation by inducting slum dwellers and building permanent-like structures.
- Serious doubts about the officers’ discharge of public duty, with the conduct described as “not innocuous” and potentially warranting suspension.
The court noted an FIR already registered (lodged by one of the implicated officers, possibly as damage control), and directed the SRA CEO to take over from Mitkar and Patil, consider their suspension pending inquiry (within one week), and allow unhindered police investigation.
All further transit camp construction was immediately halted, with the developer directed to demolish partly built structures and vacate the occupied building expeditiously (90 days sought; court emphasized urgency). Affidavits are required from the State, BMC, and SRA on the legality of reducing the reservation area without following Section 37 of the MRTP Act.
Shahid Balwa’s Link to the Project Public records and company filings confirm Shahid Usman Balwa (DIN 00016839), Vice Chairman and Managing Director of Valor Estate Ltd (formerly DB Realty Ltd), is a designated partner in Worli Urban Development Project LLP since January 18, 2020. The LLP was originally formed as Lokhandwala DB Realty LLP for this joint venture involving DB Realty/Valor Estate, Lokhandwala Infrastructure, and later Prestige Group. Balwa has publicly spoken about the project as a mixed-use development (mall, residential, hotel) spanning ~4 million sq ft.
The Deeper Rot Exposed This case exemplifies the entrenched malaise in Mumbai’s development ecosystem: powerful developers allegedly leveraging regulatory loopholes, colluding with public officials to override reservations for essential infrastructure like sewage treatment — in a city already crippled by flooding, pollution, and sanitation failures. The court’s strong language highlights how vital public projects are subordinated to private gains, with suppressed records, ignored objections, and questionable permissions creating irreversible damage. If unchecked, such practices threaten Mumbai’s livability and public health for millions.
The matter is adjourned to February 23, 2026, with the interim order underscoring that protecting public infrastructure must prevail over unchecked slum rehab ambitions.
