A Division Bench comprising Justices R.I. Chagla and Farhan P. Dubash dismissed Writ Petition No. 3929 of 2024 filed by M/s. Sunshine Builders and Developers (through its partner Mr. Shailesh Mehta) on Tuesday, February 4, 2026. The court refused to interfere with the Debts Recovery Appellate Tribunal’s (DRAT) order dated February 29, 2024, which directed the petitioner to deposit ₹125 crore (in three instalments) as a condition precedent for entertaining its appeal under Section 18(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

The dispute centres on a large parcel of land in Village Gundavali, Taluka Andheri (CTS Nos. 78 and 79, corresponding to Survey Nos. 91/2 and 4/3), admeasuring approximately 30,501.60 square metres along the Western Express Highway in Andheri East, Mumbai. The property, declared a slum under the Maharashtra Slum Areas (Improvement, Clearance and Redevelopment) Act, 1971, was originally earmarked for a slum rehabilitation scheme (SRA project). Sunshine Builders was appointed as the developer by the slum dwellers’ cooperative society.

In 2011, Sunshine Builders entered into co-development agreements with Gigaplex Developers Pvt. Ltd. (Respondent No. 3, now in liquidation), appointing Gigaplex as co-developer. Under these agreements (dated March 21, 2011; March 31, 2011; and later a third in December 2013), Sunshine Builders was entitled to a share of revenue or constructed area from the free-sale component. Powers of attorney were executed, allowing Gigaplex’s nominees to create encumbrances, though Sunshine Builders claims it never authorised mortgaging its share.

Gigaplex, however, executed two registered Deeds of Simple Mortgage (December 30, 2011, and March 12, 2013) in favour of HDFC Bank Ltd. (Respondent No. 1), mortgaging the property (excluding Sunshine’s alleged revenue share) along with another Bandra property owned by Kaveri Estate Pvt. Ltd. (Respondent No. 4) to secure loans extended to Gigaplex.

Following Gigaplex’s default, HDFC Bank issued notices under Section 13(2) of the SARFAESI Act in 2017, took symbolic possession, and later obtained physical possession via a Section 14 order in 2019. The bank auctioned the property, issuing a Sale Certificate on December 24, 2019, to Havemore Realty Pvt. Ltd. (Respondent No. 5, the auction purchaser) for ₹232 crore. Havemore later mortgaged it back to HDFC Bank and, on May 2, 2023, entered into a registered Development Agreement with Lodha Developers Ltd. (Respondent No. 6, represented in court).

Sunshine Builders challenged the bank’s actions by filing Securitisation Application No. 82 of 2019 before the Debts Recovery Tribunal (DRT), Mumbai, in September 2017 (initially challenging early measures). Upon learning of the 2019 sale (around February 2020), it sought to amend the application in January 2021 to implead Havemore Realty, add subsequent facts, challenge the sale, and seek condonation of delay.

The DRT dismissed both applications via a common order dated October 7, 2022, holding that the amendments were belated, unexplained, and would alter the nature of the lis, while noting Sunshine Builders’ delay despite knowledge and its parallel Commercial Suit No. 1003 of 2019 (still pending without interim relief).

Sunshine Builders appealed to DRAT, seeking waiver of the 50% pre-deposit under Section 18(1) SARFAESI Act, arguing it was not a “borrower” and the DRT order was merely procedural. DRAT rejected the waiver plea in February 2024, directing the ₹125 crore deposit.

The High Court, after detailed hearings (reserved on December 16, 2025), ruled that:

• Sunshine Builders qualifies as a “borrower” under Section 2(1)(f) SARFAESI Act, as it is a co-mortgagor in the registered mortgage deeds.
• The DRT’s common order was substantive — it effectively extinguished Sunshine Builders’ right to challenge the concluded auction sale post-limitation — not merely procedural.
• Section 18(1) mandates pre-deposit for “any order” under Section 17, including interlocutory ones, with no statutory exception for procedural refusals.
• Judicial precedents (e.g., Union Bank of India vs. Rajat Infrastructure, Raj Kumar Shivhare vs. ED) confirm the pre-deposit is absolute and non-waivable.
• Equities heavily favour third parties: Lodha Developers has spent over ₹80 crore on construction (four G+15 towers, 53% units sold, 8 rehab buildings completed and occupied by slum dwellers as of August 2025).

The court dismissed the petition with no costs, leaving Sunshine Builders to deposit ₹125 crore if it wishes to pursue the appeal on merits before DRAT.

This ruling underscores the strict pre-deposit regime under SARFAESI to deter delays in secured creditor recoveries, while protecting bona fide third-party rights in advanced redevelopment projects.

Also Read: Redevelopment Disputes Can’t Be Thrown Out Without Trial: Bombay High Court

The post Auction Done, Towers Rising: Court Rejects Builder’s Bid to Bypass ₹125 Crore Deposit appeared first on Square Feat India.

By Varun Singh

Prime plots belonging to Maharashtra State Road Development Corporation (MSRDC) in Mumbai will soon be up for grabs.

There are other plots belonging to MSRDC located on Mumbai-Pune Expressway that will also be auctioned by the corporation.

Of the three prime MSRDC plots in Mumbai one is located at Napean Sea Road and two are at Bandra.

Confirming the same Radheshyam Mopalwar Vice Chairman & Managing Director, MSRDC said, “We expect Rs 15,000 crore from the auctioning of these plots.”

An international property consultancy firm has been appointed to assist MSRDC in the auction of these plots.

The Request For Quotation of Napean Sea Road plot was floated last year in August. However, with the real estate market not being in best of its shape, the process was pushed ahead,

Vijay Waghmare, Joint Managing Director, MSRDC said all the plots will given out on a long lease. This long lease period could be between 30 to 60 years.

In Bandra one of the plots currently has a casting yard, which is soon expected to be vacant and other plot is nearby to it.

The dates when the tenders for auctioning of these plots shall be decided after a board meeting of the corporation.

“We expect Rs 15,000 crore from the auctioning of these plots.”

Radheshyam Mopalwar Vice Chairman & Managing Director, MSRDC

According to a realtor, Mumbai for long hasn’t seen any land parcel or a huge plot being auctioned.

The plots would have come in the market a bit early but because of the pandemic and the downturn in the sector delayed the process.

“MSRDC is expecting Rs 15,000 crore, but the amount they will finally generate shall depend on the market situation too. While the condition isn’t very good now, but when it comes to open plots, one can never say,” said the realtor.

Meanwhile, on the Maharashtra Samruddhi Mahamarg (Mumbai-Nagpur Expressway) a total of 19 townships will be built.

According to Mopalwar these townships will have close to 1 lakh population each, and land for six townships shall be acquired as soon a summer of 2021. Post which a development plan for these townships will be prepared too.

The expressway connecting Mumbai and Nagpur is 701 kilometer long and the total project cost is Rs 55,335 crore.

Also Read: Indiabulls takes possession of Villas, flats connected to Wadhawans in Mumbai

The post MSRDC Plots Worth Rs 15,000 Crore Up For Grabs appeared first on Square Feat India.