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The Bombay High Court imposed an INR 50 lakh fine on a businessman for leasing a shop in a redeveloped building on MHADA land in Kurla to Jammu & Kashmir Bank without an occupation certificate (OC). The court emphasized that commercial tenants and landlords must ensure statutory compliance, including fire NOC and OC. Chheda was directed to pay the fine to the PM CARES Fund within two weeks. The court also ordered the enforcement of a previous order to vacate the premises and highlighted lapses in due diligence by the bank.
The Bombay High Court has imposed an INR 50 lakh fine on an individual for leasing a shop in a redeveloped building in Kurla to Jammu & Kashmir Bank without securing an occupation certificate (OC). The property, part of a MHADA redevelopment, lacked the mandatory OC, a legal requirement for lawful commercial use. Justice Kamal Khata vacated an earlier interim protection order and directed immediate enforcement of prior orders requiring Chheda and his assignees to vacate the premises within 48 hours, failing which the property would be sealed. Advertisement
The individual had argued that the initial ex parte order was issued without notice, citing potential public inconvenience if the bank branch was closed abruptly. His advocate mentioned a lease executed in February 2024 with the bank and requested six months to vacate. However, the court found no satisfactory explanation for commencing bank operations in premises without an OC and emphasized that reliance on Parsn Construction and Developers Pvt Ltd did not absolve Chheda from ensuring lawful occupation.
The court highlighted that the bank's officers had a duty of diligence to verify statutory compliance, including fire NOC and OC, before opening the branch. The court observed that the unlawful occupation had continued for nine months, with interim orders used to prolong non-compliance. Justice Khata dismissed the petition with exemplary costs and instructed the bank to initiate an internal inquiry within six weeks to identify officers responsible for the lapse and take appropriate action. Authorities were reminded they could still pursue independent statutory actions against the parties involved.
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