Litigation Update | Supreme Court Upholds Occupants' Rights In Redevelopment Projects, Reinstates Mhada Orders For Permanent Alternate Accommodation

Overview:
The Supreme Court of India, vide its judgment dated July 23, 2026, in Mahabanoo Contractor and Another v. Kalikund Developers and Others (Civil Appeal No. 9342 of 2026), set aside a Bombay High Court decision and ruled in favour of the occupants of a redeveloped cessed building. The Supreme Court upheld the Maharashtra Housing and Area Development Authority’s (MHADA) orders directing the developer to execute the Permanent Alternate Accommodation Agreement (PAAA) and hand over possession. The ruling firmly establishes that a PAAA executed under the Maharashtra Housing and Area Development Act, 1976 (MHAD Act) and the Development Control (DC) Regulations is not merely a private arrangement but is governed by a statutory scheme protecting occupants' rights.