The Bombay High Court has ordered the Brihanmumbai Municipal Corporation (BMC) to maintain a status quo on further demolitions at Rustomjee Crown until the next hearing on September 16. According to NDTV, the court passed this order on September 3 after residents informed it that demolition action was underway. The court recorded that BMC's counsel told the court that demolition relating to 20 structures had been completed and that further demolition was underway. The court intervention comes after residents say they were told BMC would conduct an ordinary inspection on August 24, but demolition of disputed foyer structures followed instead. As per NDTV, the bench noted that it must first examine the residents' original grievances and, taking into account that the petitioners have lived in these flats since 2021, directed the BMC to stay its hands on demolitions in the buildings until the next date.
Residents of Rustomjee Crown have escalated their legal challenge by moving the Bombay High Court against the developer following the BMC's demolition of foyer areas on August 24. The latest development sees around 140 flat owners, represented by 246 plaintiffs, seeking ₹1,000 crore in damages along with the preservation of unsold inventory at the project. According to reports from Moneycontrol, the petitioners have also sought the quashing of BMC's orders and protection from further demolition action. The suit alleges misrepresentation, breach of contract, and fraud on the part of the developer, with residents claiming they paid ₹350 crore attributable to the foyer area as part of their total apartment cost. As per NDTV, residents are seeking disclosure of the approval history, including sanctioned plans, revised plans, approval applications and communications with BMC. The suit alleges that "We did not buy an unfinished shell from an unknown builder and then create unauthorized spaces ourselves. We paid a premium for a Rustomjee Crown home because we believed the plans, spaces and configuration presented to us by an established developer could be relied upon."
Residents have provided comprehensive evidence supporting their position, claiming their documents describe the apartment area including a separate, private foyer area, with the net usable area calculated by adding the two. According to NDTV, one resident stated that "The floor plans that we received specifically show that the apartment's main door leads into the foyer area which has been subject to the demolition and notices from BMC. In fact, that is also the case with all of the promotional material that we saw. The developer approved the foyer fit-outs, and in some cases, a group company related to the developers executed the interiors." Another petitioner highlighted that private elevators offered to some apartment buyers were located inside the foyer areas of the flats, away from the common areas. The residents maintain they have not encroached on the foyer spaces and claim the areas were presented by the developer as exclusive spaces attached to individual apartments. According to NDTV, residents say the foyers were presented as an exclusive feature of the apartments and point to marketing material and show-apartment configurations that displayed enclosed foyer spaces with doors, cupboards, seating and other interior elements. The residents' documents show the foyer areas appeared in costing sheets alongside RERA carpet area, forming what was described as net usable area, with registered sale agreements defining the premises as comprising the apartment and foyer.
Rustomjee Crown comprises three high-rise towers (Towers A, B and C) offering three-, four- and five-bedroom apartments. According to residents, Towers A and B are both 53-storey buildings with 372 apartment owners, and residents have claimed that the foyer configuration exists in nearly 95% of the apartments in Towers A and B. The BMC has issued notices to the first batch of 186 flats and has already demolished eight foyers in five-bedroom apartments. The four-bedroom apartments measure around 2,000 sq ft with foyers of approximately 180-185 sq ft, while five-bedroom apartments measure around 2,800-3,000 sq ft with foyer areas of nearly 550 sq ft. The development counts prominent executives, business owners, and politicians among its residents. As per NDTV, residents estimate that about 95% of apartments in Towers A and B have the relevant foyer configuration, with one resident noting that "When similar regulatory issues arise in a number of apartments across the same luxury development, the obvious question is whether there is a systemic problem in what was designed, sold, approved or facilitated."
Rustomjee Group has categorically denied any wrongdoing in connection with the Rustomjee Crown project following legal action by residents. According to a company statement, Rustomjee Crown was developed and constructed in accordance with sanctioned plans and approvals granted by competent authorities and in compliance with applicable laws and regulations. A Rustomjee spokesperson told Moneycontrol that "the project has been built in compliance with all sanctioned plans by the civic body, and is examining the contents of the lawsuit." The company spokesperson stated that there has been no violation or non-compliance on its part and described the proceedings as misconceived and being examined accordingly. However, NDTV reports that residents say they had also been asked to provide authorisations for Rustomjee representatives to communicate with or represent them before BMC, leaving them with limited visibility into the communications, submissions and representations made during the municipal proceedings. One resident stated that "When the municipal proceedings started, we continued to look to the Rustomjee team for guidance. Residents were told to wait for next steps and were asked to authorize representatives to attend BMC hearings. We relied on them. We are now being forced to protect ourselves independently because our homes are at risk."
