The Bombay High Court has restrained the Brihanmumbai Municipal Corporation (BMC) from taking further demolition action against disputed foyer areas in flats at Rustomjee Crown, a residential complex in Mumbai’s Prabhadevi, until the next hearing on September 17. The order followed a petition filed by flat owners challenging the civic action and seeking protection from further demolition.
Justice Sandeep Marne directed the developer, Keystone Realtors Ltd, to file an affidavit responding to the residents’ claims. The court’s interim direction applies while it considers the petition filed by 246 people representing 140 flat owners in the three-tower complex.
The dispute concerns foyer areas, described in the petition as entrance or lobby spaces attached to individual flats. The residents have challenged the BMC’s demolition notices and action against these areas. They have also sought Rs 1,000 crore in compensation, cancellation of the notices, protection from further demolition and directions to regularise the foyer spaces.
According to the report, the BMC began action against the foyer areas on August 24. Notices were issued to the first group of 186 flats, while eight foyers in five-bedroom apartments had been demolished. The civic action was expected to continue for about a month before the High Court’s interim order stopped further action against the concerned flats.
Rustomjee Crown comprises Towers A, B and C. Towers A and B are 53-storey buildings, with four flats on each floor. Together, the two towers have 372 flat owners, and the petitioners claim that foyers exist in approximately 95% of the apartments.
The residents have alleged that Keystone Realtors provided incorrect information, breached contractual obligations and committed fraud. Their petition states that the foyer spaces were presented as a special area attached to the respective flats in marketing material, apartment plans, cost details and registered sale agreements. The petitioners further claim that the purchase price, stamp duty and registration charges were calculated on the combined area of the flats and foyers.
The residents have also referred to the occupancy certificates issued for Towers A and B in 2025. According to their petition, the towers were inspected before the certificates were granted, and no objection was raised regarding the foyers at that stage. The dispute emerged later, when the developer sought an occupancy certificate for Tower C and the BMC determined that the foyer areas involved additional floor space index, or FSI, usage.
In a statement issued after the demolition action, the Rustomjee group denied violating any regulations. The group said the construction had been carried out according to plans approved by the competent authorities under the 1991 Development Control Regulations. It also said the project had received an occupancy certificate and that the company was cooperating with the administration.
The petitioners have additionally asked the court to direct that unsold flats held by the developer be secured to ensure compliance with any future order. The Bombay High Court is scheduled to hear the matter again on September 17, when the developer’s response and the parties’ claims regarding the foyer areas, approvals and FSI use are expected to be considered.
