The development of the Powai Area Development Scheme (“PADS”) in Mumbai, has been fraught with legal controversy for the last twenty-odd years. In 1986, the Mumbai Metropolitan Region Development Authority (the “MMRDA”) entered into a tripartite agreement with the original landowners to develop 93 hectares of land in Powai, Mumbai. The land was leased to the Hiranandani group for development at a nominal rate of Rs. 1 per hectare. In return, Hiranandani was to construct low cost housing of two types – one of 40 square meters, and the other of 80 sq.m. The original owners would get housing for themselves and an 80-year lease over developed property. Of the remaining housing, 15% would be sold back to the state at low rates for allocation to government employees. The rest would be sold for profit by Hiranandani.

The original agreements with Hiranandani also had requirements for the provision of open…