Mumbai: Holding that larger public interest is demonstrated in the state’s decision, the Bombay High Court on Thursday paved the way for a cluster redevelopment of massive 34 acres in Worli and 98 acres in Bandra Reclamation area under the state’s move to appoint a developer for Mhada’s layouts.The HC bench of Justices M S Karnik and S M Modak dismissed as meritless a challenge raised by a group of cooperative housing societies to two govt resolutions (GRs) that provided for a bidding process and the redevelopment of the two prime layouts of Maharashtra Housing and Area Development Authority (Mhada) layouts in Bandra Reclamation and Adarsh Nagar in Worli.Adani Properties emerged winner in the bidding process for the appointment of a construction and development agency for both the plots. Mhada is to receive Rs 3,900 crore as premium for the Bandra plot and Rs 1,922 crore for the Adarsh Nagar plot, the HC noted.The justices agreed with the state advocate general to hold that Mhada, as the owner, had preferential rights to initiate redevelopment of its land under Regulation 33 (5) of Development Control (and Promotion) Regulation 2034.Adarsh Nagar and Bandra Reclamation layouts comprise several old buildings developed decades ago.The HC held that the state’s “policy decision demonstrates that redevelopment of Mhada layouts is not merely a private redevelopment exercise between a society and a developer, but is intrinsically linked with larger housing policy objectives of the state and Mhada concerning planned housing distribution, urban infrastructure, housing affordability and balanced development of public housing stock.” The state estimates that over 3,000 housing units would be generated under the scheme for yawning gap in public housing availability.The HC “is expected to act with a great caution while it interferes with the priorities fixed by the govt, unless it is established that the decision taken by it is patently arbitrary or not in larger public interest,” the judgement running into 247 pages said.“The govt should be free to take policy decisions or to decide priorities and it is better left to the wisdom of the state, which is well advised by the bureaucrats, and its other officers, who possess an expertise in taking policy decisions, which may involve various factors like the availability of fund, the requirement of the state to focus upon a particular sector in precedence over the other etc,” it reasoned.Ten petitions by B-Adarsh Nagar CHS, Kamalpushpa, Parijat, Bandra HIG Agasti and other societies approached HC this year and assailed two GRs of April and Dec 2025 specifically for redevelopment of Bandra Reclamation and Worli plots through a bidding process to be initiated by Mhada as the landowner. Earlier, the state issued a GR for redevelopment of 56 Mhada layouts in the state.The challenge by the societies was that they were owners of the plots and the GR as well as bidding process flouted their constitutional rights under Article 300A. The GR was invalid as it did away with mandatory consent of societies under Regulation 33(5) and also included in its fold high income group (HIG) societies. Article 300A protects citizens against arbitrary deprivation of their property by the state.Advocate General Milind Sathe argued that the GR was valid and the process too, saying Article 300A was a flawed argument of the petitioners as the societies are still “occupiers ” not owners, claiming rights under a sub-lease. Two former state advocate generals, Ravi Kadam and Darius Khambata, with advocate P G Lad for Mhada, said it was Mhada land and hence under rules governing development, as the owner, it was empowered to redevelop by appointing a developer. They too argued that since the societies were not owners, but lessees, the redevelopment rights vest with Mhada as owner while flat owners’ rights are being protected for permanent rehabilitation.Through a bevy of senior counsel, including Y S Jahagirdar, Girish Godbole, Zal Andhyarujina, Vishwajeet Sawant, Surel Shah and other counsel, including Anshuman Jagtap, Karl Tamboly, Mayur Khandeparkar and Huzefa Nasikwala, however, argued that the lands were conveyed to them and were being taken away sans any proper procedure of law.The HC found force in submissions made by Sathe, Kadam and Khambata that “Mhada continues to have overarching authority to develop Mhada schemes, colonies, layouts or … any ‘authority premises.’”Allottees or lessees have limited rights, which is subject to Mhada’s right to redevelop the lands, the HC held.Mhada said permitting individual societies in layouts such as Adarsh Nagar and Bandra Reclamation to independently redevelop isolated buildings through private developers would completely defeat the larger policy framework underlying the aforesaid GR and Regulation 33(5). The HC agreed.The HC said it found no substance in the housing societies’ contention that they have an unfettered right to development of the plots under the terms of the sub-lease deeds and sale agreements.