Following the Bombay High Court’s order, East & West Developers have issued an ultimatum to the BMC to remove Godrej from the Wadala project within seven days and restore possession, failing which contempt proceedings will be initiated.
Following the High Court’s status quo ante order, Godrej’s very entry into the project has been rendered illegal, and its continued presence amounts to a continuing act of contempt on a day-to-day basis.
Due to the fraud committed by Godrej upon both the Government and the High Court, the Bombay High Court Division Bench had already passed orders directing the initiation of criminal proceedings against the directors of Godrej.
Despite clear judicial directions, Godrej misled the public. A legal notice seeking ₹10,000 crore damages has accordingly been served upon Godrej and its legal representative Madhia Kapadia, with both civil and criminal proceedings proposed against the company.
In a more stringent move, a petition is set to be filed under Order 38 Rule 5 and Section 151 of the Civil Procedure Code, seeking court directions to secure a ₹10,000 crore bank guarantee from Godrej and to seek attachment of all properties of Godrej and sending the custody of the company’s directors until compliance is ensured.
The developments were confirmed by Adv. Ishwarlal Agarwal, counsel for the plaintiff Ayush Tiwari.
Transactions Despite Public Notice Dated 15.05.2022 — No Defence Left for Godrej or Buyers; Strong Evidence for Criminal Prosecution Against Godrej.
East & West Developers, through their advocate Nilesh Ojha, had issued a detailed public Caution Notice dated 15.05.2022 in leading newspapers such as Free Press Journal, Mid-Day, and Loksatta, expressly warning the public that the permissions granted to Godrej were conditional and that the matter was sub judice before the Court. The notice further clarified that the representations and statements made by Godrej and its sales executives were factually incorrect and amounted to misrepresentation, and were described as unscrupulous, fraudulent, and deceitful.
Despite this explicit public warning, Godrej allegedly proceeded with the project, entered into transactions with numerous purchasers, and sold multiple flats, thereby collecting amounts running into thousands of crores. It is further alleged that such transactions were carried out by making representations that the project was free from legal impediments, which, in light of the public notice and pending litigation, raises serious concerns.
In 2022, Godrej moved the High Court seeking withdrawal of the caution notice, supported by what is alleged to be a false affidavit, thereby attempting to mislead the Court. However, once East & West Developers placed substantial and compelling evidence on record and pressed for criminal action, Godrej did not pursue its plea with any conviction and effectively abandoned its position.
The High Court declined to grant any relief for withdrawal of the notice. Further, for the past four years, Godrej has not taken any concrete steps to press for interim relief in the matter.
These circumstances, taken together, strongly indicate a pattern of misleading conduct, lack of bona fides, and an apparent misuse of the judicial process, rendering Godrej’s stance legally unsustainable.
Consequently, the said notice has attained considerable legal significance and now operates as a strong piece of evidence, both against Godrej and in determining the rights, obligations, and liabilities of subsequent purchasers.
A major legal development has emerged in the multi-billion redevelopment project at Wadala. Pursuant to the Division Bench order dated 12 March 2026, East & West Developers have issued a formal notice to the BMC, giving a clear 7-day ultimatum to immediately remove Godrej from the site and restore possession, failing which contempt proceedings will be initiated.
As per the said Division Bench order dated 12 March 2026, the Single Judge’s order dated 23 January 2020, along with all subsequent orders and permissions granted thereafter, has been set aside.
Godrej’s entry, permissions, and all rights in the project were entirely derived from the said Single Judge’s order. Consequently, with the setting aside of that order, all such rights and permissions stand extinguished and are rendered void ab initio in the eyes of law.
It is further well-settled that if any attempt is made to object to or evade the implementation of the said order, the persons concerned would be liable for contempt of court under Sections 2(b), 2(c), and 12, attracting both civil and criminal consequences, as clearly laid down by the Hon’ble Supreme Court.
Any act aimed at obstructing or delaying the implementation of the Court’s order—such as adopting a misleading or convenient interpretation of the order, deliberate non-compliance, intentional delay, prolonging procedures, creating administrative hurdles, or any direct or indirect attempt to render the order ineffective—would, in itself, constitute contempt of court.
Such conduct is not merely a violation of the Court’s order but a direct assault on the administration of justice. It undermines the authority of the judiciary and erodes public confidence in the legal system. Accordingly, courts are empowered to take strict punitive action under contempt law, including imposition of fines, imprisonment, or both.
The Hon’ble Supreme Court in Celir LLP v. Sumati Prasad Bafna, 2024 SCC OnLine SC 3727, held as under:
“Any contumacious conduct of the parties to bypass or nullify the decision of the court or render it ineffective, or to frustrate the proceedings of the court, or to enure any undue advantage therefrom would amount to contempt.”
“Thus, the mere conduct of parties aimed at frustrating the court proceedings or circumventing its decisions, even without an explicit prohibitory order, constitutes contempt. Such actions interfere with the administration of justice, undermine the authority of the judiciary, and threaten the rule of law.”
Conditional Permission Backfires — Entire Legal Foundation Collapses
The permission granted by the BMC to Godrej on 5 November 2020 was explicitly conditional, being subject to the final outcome of the court proceedings. With the High Court now restoring status quo ante in favour of East & West Developers, the very legal foundation of Godrej’s entry into the project has collapsed.
Consequently, all permissions, agreements, and transactions based on such conditional approval stand rendered ineffective and are liable to be treated as void.
Supreme Court’s Clear Warning — Investment at Own Risk
The Hon’ble Supreme Court has consistently held that any investment, construction, or sale of flats undertaken during the pendency of litigation does not create any enforceable legal rights. Such transactions are liable to be declared null and void.
The direct implication is clear: neither the invested money is legally secure, nor does any enforceable right in the property arise.
From ‘Adventure’ to ‘Misadventure’ for Godrej
Godrej’s decision to proceed with large-scale investments worth thousands of crores on the basis of conditional permissions has now turned into a legal misadventure. Following the High Court’s order, the entire legal structure of the project stands shaken, placing all related transactions under serious legal jeopardy.
The Supreme Court has further clarified in multiple judgments that, in such circumstances, transactions entered into with purchasers are vitiated in law. Such buyers cannot claim the status of bona fide purchasers and are not entitled to any interim protection or stay. They also cannot assert any valid title or right over the property.
The Court has categorically held that the only remedy available to such purchasers is to recover their invested amounts, along with interest and damages, from the developer (in this case, Godrej). Additionally, where false representations have been made—such as claiming that the project is free from legal impediments and all permissions are unconditional—such acts may give rise to serious criminal liability, including prosecution for fraud and misrepresentation.
High Court Exposes Fraud by Godrej- orders prosecution.
The Division Bench of the Bombay High Court in Godrej & Boyce Manufacturing Co. Pvt. Ltd. v. Union of India (1992 Cri. L.J. 3752) exposed the company’s fraudulent conduct, holding that it had committed grave offences including forgery, fabrication of documents, giving false evidence, and defrauding the Court, with the objective of evading government revenue running into crores of rupees.
The High Court directed initiation of criminal prosecution, including issuance of directions to the Registrar of the High Court to file a complaint as the complainant.
The Hon’ble High Court observed as under:
“If the Court fails to order criminal prosecution against the persons responsible for such fraudulent acts committed by a corporate entity and allows them to go scot-free, future generations will never forgive the judiciary for such negligence.”
