In a major relief to K Raheja Corp and thousands of employees associated with the project, the Supreme Court has set aside the 2014 Bombay High Court order directing demolition of the Inorbit Mall and hotel project in Vashi, Navi Mumbai.
The apex court instead permitted regularisation of the land allotment upon payment of INR 318.31 crore to CIDCO, along with an additional INR 1 crore penalty for failure to develop a proposed Japanese garden on the site. The amount must be paid within four months for the regularisation to take effect.
The matter relates to a 30,582-square-metre plot in Vashi Sector 30A that was allotted directly to K Raheja Corp by CIDCO in 2003. The land was originally reserved for an IT park, but was later converted for commercial use. The allotment was challenged through public interest litigations, following which the Bombay High Court in 2014 declared the allotment illegal and ordered demolition of the entire project and restoration of the land to CIDCO.
Hearing appeals against the High Court order, a Supreme Court bench of Justice P.S. Narasimha and Justice Alok Aradhe observed that demolishing a fully operational commercial complex after nearly 17 years would be against public interest. The court noted that the project involved an investment of around INR 450 crore, housed over 150 retail establishments and supported the livelihood of nearly 8,000 people directly and indirectly.
The court said that while administrative irregularities had occurred in the allotment process, the resulting financial loss to CIDCO could be addressed through monetary recovery rather than demolition. It also stressed the principle of proportionality while balancing legality with larger economic and social consequences.
As per the judgment, the compensation amount has been calculated on the basis of November 2014 ready reckoner rates and the formula recommended by the Bhatia Committee. The amount already paid by the developer towards the original allotment will be adjusted against the final payable sum.
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