Bombay High Court

Bombay High Court: Neelam Nagar Federation's Land Claims Limited in Mulund Dispute

Updated
Nov 5, 2025 12:40 PM
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Quick Summary: The Bombay High Court handled a heated argument between Acme Enterprises and the Neelam Nagar Federation of housing societies about who gets to use the land and build on it in Mulund, Mumbai. The court had to decide if Acme Enterprises could keep building on the land that the Neelam Nagar Federation said belonged to them.

Background of the Case

Acme Enterprises and the Neelam Nagar Federation were arguing over a piece of land in Mulund, Mumbai. The land was supposed to have several buildings, but they couldn't agree on who had the right to the land and if Acme Enterprises could finish a building that was already started.

Acme Enterprises' Stand

Acme Enterprises said they had the right to finish Building No. 1 because it was part of the original plan shown to people who bought apartments. They argued that the Neelam Nagar Federation couldn't claim all the land since the project wasn't finished yet. Acme Enterprises wanted to use the land according to new building rules to complete the structure.

The Federation’s Argument

The Neelam Nagar Federation, which represents the already existing buildings, wanted to own all the land. They said Acme Enterprises had given up on the project and that any remaining building rights should go to them. They were against Acme Enterprises using new building rules to make the structure bigger.

Court’s Decision

Land Entitlement: The court decided that the Neelam Nagar Federation could only claim land based on the size of their existing buildings, not the entire plot. This meant Acme Enterprises kept some rights to the land for Building No. 1.

Construction Rights: Acme Enterprises was allowed to keep building, but they had to stick to what was originally promised to the apartment buyers—keeping the building to 17 floors and a certain size.

Use of New FSI: Acme Enterprises could use the new building rules for their part of the land but couldn't go beyond the original building plans.

Key Quotes

"Acme Enterprises is entitled to construct Building No. 1 by using admissible built-up area to the maximum extent of 7,166.70 sq. mtrs."

"The Neelam Nagar Federation cannot insist that Acme Enterprises should not avail the increased FSI under DCPR-2034 in respect of land in which it has no title."

Verdict Summary

The court ruled that Acme Enterprises could continue with their construction plans, but they had to follow the original building size and plans shown to buyers. The Neelam Nagar Federation could not claim the whole land, only the part that matched their existing buildings.