"'Fraud Unravels Everything': Bombay HC Demolishes Defense in Building Permissions Saga

In a stern rebuke to developers who game the system, the Bombay High Court has upheld the Ulhasnagar Municipal Corporation's (UMC) revocation of building permissions for a 16-floor tower, ruling that consents obtained through "misrepresentation and incorrect material" are null and void from the start. A Division Bench of Justices A.S. Gadkari and Kamal Khata dismissed Writ Petition No. 14342 of 2024 on April 29, 2026, rejecting pleas from Jhalak Constructions and partners Naresh and Sagar Wadhwani. The court refused a stay, paving the way for demolition of the near-complete structure.

From Vacant Plot to Vertical Ambition: The Contested Build-Up

The saga unfolded on a 1004.5 sq. meter plot in Ulhasnagar-5 (CTS Nos. 27918-27922, 27925, 30678), purchased by the petitioners in May 2019 from the Jeswani family. Seeking to erect "Jhalak Paradise," they applied for development under Section 45 of the Maharashtra Regional Town Planning (MRTP) Act, 1966. After scrutiny, public notices, and paying charges, UMC granted initial seven-floor approval in December 2020. Petitioners relinquished 345.52 sq. meters via a registered Release Deed for a proposed DP road.

A revised plan in 2021, backed by a Junior Engineer's report claiming no DP road impact, escalated approval to 16 floors in November 2021—another 41.16 sq. meters released. MahaRERA registered the project (completion by Dec 2025), plinth certificate issued, and construction hit 14 floors (80% done) by late 2022. But complaints in 2023 triggered a Stop Work Notice, leading to show-cause notices and the August 16, 2024 revocation under Section 51 MRTP Act, alleging 80% of the plot overlapped 24m and 36m DP roads.

Developers' Plea vs. Corporation's Crackdown: The Courtroom Duel

Petitioners, via advocate Girish Agrawal, argued procedural purity: full fees paid, sites verified, lands released totaling 386.68 sq. meters, and permissions lawfully secured post-hearings. They decried the revocation as malafide , spurred by a politically linked complaint, with inadequate show-cause grounds and no prior hearing despite court orders. With Rs. 17 crores invested and buyers onboard, they sought equity against "nipping the project in the bud."

UMC, represented by senior advocate Vijay Patil, countered with an affidavit from Assistant Director Lalit Khobragade: post-inspection overlays revealed massive DP road encroachment, impossible for prior officer Shri Mule—who was demoted in May 2024—to have missed. Permissions stemmed from "incorrect plans and material," constituting fraud. Patil invoked "fraud vitiates all," urging dismissal with costs; an intervener (Adv. Swapnil Patil) backed UMC.

Supreme Mandates Guide the Gavel: No Mercy for Urban Fraud

The Bench dissected the duplicity: petitioners cited a 2021 report deeming the plot "unaffected" yet admitted releasing land for DP roads—classic approbate-and-reprobate. Echoing recent Supreme Court wisdom, Justices Gadkari and Khata (per Khata, J.) held investments or partial construction no shield for illegality. They drew from Rajendra Kumar Barjatya v. UP Avas Evam Vikas Parishad (2024 SCC OnLine SC 3767), mandating "iron hands" against violations, decrying regularization as environmental sabotage. Kaniz Ahmed v. Sabuddin (2025 SCC OnLine SC 995) reinforced: courts must shun "misplaced sympathy" to uphold rule of law.

Fraud rendered permissions non est ; unclean hands barred equity. UMC's officer accountability (demotion) cleansed the system, aligning with judicial calls to punish delinquents.

Bench Bites Back: Quotes That Cut Deep

  • "A party who has mislead the Authority by tendering incorrect documents... cannot get advantage of his own wrong. Fraud vitiates all Orders."
  • "The permissions granted to the Petitioners stand vitiated and are non-est in the eyes of law."
  • "Delay in directing rectification of illegalities... cannot be used as a shield to defend action taken against the illegal/unauthorized constructions." (quoting Rajendra Kumar Barjatya )
  • "The Courts must adopt a strict approach... The law ought not to come to rescue of those who flout its rigours." (citing Kaniz Ahmed )

As noted in legal reports, this aligns with the Court's headline stance: "Permissions Obtained By Misrepresentation Are Void."

No Reprieve, Razors Out: Fallout for Developers and the City

Petition dismissed; IA 568/2025 disposed. UMC ordered to enforce demolition per notice; compliance check June 17, 2026. No four-week stay for Supreme Court appeal. Implications ripple: developers face zero tolerance for forged plans, reinforcing MahaRERA-UMC scrutiny. For Ulhasnagar, DP roads reclaim space; buyers stare at losses, but orderly urban growth prevails. A clarion call—play fair, or the courts will play hardball.