When A Promise Becomes A Duty: Enforcing Developer Obligations In MHADA Redevelopment

Under the MHAD Act, a Permanent Alternate Accommodation Agreement is part of the statutory redevelopment scheme, not just a private contract. In Mahabanoo Contractor v. Kalikund Developers (2026), the Supreme Court held that MHADA can enforce it, so occupants can compel a defaulting developer through MHADA, writ petitions and civil remedies.

Thousands of families in Mumbai live in old “cessed” buildings that need rebuilding. Redevelopment usually works on a simple exchange. Occupants give up their homes and move into temporary accommodations. The developer promises that permanent flats will be waiting in the new building. That promise is recorded in a Permanent Alternate Accommodation Agreement (PAAA).