Pune: Bombay High Court Orders Rs 5 Lakh Penalty on PMC Officials for ‘Arbitrary’ Action Against Housing Project
Pune, 26th November 2025: The Bombay High Court has struck down a stop-work notice issued by the Pune Municipal Corporation (PMC) to Atria Constructions, ruling that the action was “perverse, illegal, improper, arbitrary and mala fide.”
The Division Bench of Justices G.S. Kulkarni and Arif S. Doctor delivered the judgment on 21 November 2025, also imposing exemplary costs of ₹5 lakh on PMC officials, to be recovered jointly and severally.
The case relates to the Rajgruhi Residency project in Kondhwa, where Towers A and B are completed and occupied. Tower D has been fully constructed and is awaiting an Occupancy Certificate (OC), while Tower C has reached up to the fourth floor. Atria Constructions is the developer for Towers C and D.
Court Slams PMC for ‘Vague’ Action
PMC issued the stop-work order on 10 December 2024, citing alleged violations, absence of environmental approvals and incomplete stormwater drain realignment. The court, however, found that officials acted without proper inquiry or documentation.
The judges noted that a show-cause notice dated 6 December carried no specific details, and after a brief hearing on 9 December, the civic body halted construction the very next day. The Bench criticised the process as hasty and lacking any factual basis.
Dispute Between Developers Sparked Civic Action
The court observed that the stop-work notice was prompted by a private commercial dispute between Atria Constructions and Wellbuild Merchants Pvt Ltd, the landowner and developer of Towers A and B. After failing to obtain relief in arbitration proceedings, Wellbuild allegedly influenced PMC to intervene.
The Bench also raised concerns over “extra-legal interference,” pointing out that unrelated individuals, including an RTI activist, were allowed into PMC’s internal hearing without justification.
Homebuyers Left in Limbo
The order highlighted that 58 flats in Tower D had already been sold and were ready for possession. The civic action stalled the issuance of OC and delayed handovers, causing financial and emotional distress to families.
“The municipal officers’ conduct deprived legitimate flat purchasers of timely occupation,” the judgment stated, adding that officials acted with “extraneous considerations” and without proper verification of records or on-site assessment.
Environmental Compliance Upheld
PMC’s claim regarding the lack of valid environmental permissions was also rejected. The court noted that an Environmental Clearance granted in 2017 was still valid, and a revised EC application awaiting approval could not be grounds for halting construction.
Notice Quashed, Inquiry Ordered
Setting aside the stop-work notice, the Bench issued a writ of mandamus in favour of the developer. The Pune Municipal Commissioner has been directed to conduct an internal inquiry into the actions and motives of the officials involved, and to submit an action-taken report within six weeks.
The court emphasised that civic authorities must act with fairness, transparency and accountability, stating that misuse of public power will not be tolerated.
