3,000 Homebuyers Stranded as HDIL Projects Remain Stalled for Years in Mumbai
Mumbai’s once-thriving property sector is currently home to a group of 3,000 frustrated homebuyers who find themselves in an agonising limbo. These buyers, who booked apartments in HDIL (Housing Development and Infrastructure Limited) projects more than a decade ago, are still waiting for their homes, having already paid nearly Rs 900 crore. The projects, which were once the beacon of hope for aspiring homeowners in the city, are now abandoned, with some of them at a standstill for almost 15 years.
HDIL, once a prominent name in Mumbai’s real estate scene, is now a shadow of its former self. The company was known for its ambitious redevelopment projects across Mumbai and its periphery, with major projects in areas like Nahur, Mulund, Kurla, Vasai, and Palghar. However, after a series of legal issues and the company’s eventual bankruptcy, these projects came to an abrupt halt, leaving thousands of hopeful homebuyers in despair. Many of the buyers had booked their flats in the early 2010s, with the expectation that they would soon be able to settle into their new homes. “It’s been over a decade since we first booked our flats, and we still don’t know when we will get possession,” says one of the homebuyers, who has been waiting since 2010 for the completion of the Majestic Towers project in Nahur. The project, which was to consist of 1,000 apartments across four 36-storey towers, was one of HDIL’s most ambitious undertakings, but it now stands half-built and abandoned.
In Mulund, the Whispering Heights project is also at a standstill. Of the 1,450 flats planned for the development, 450 were sold before construction ceased. Similarly, the Galaxy Apartments project in Kurla, where 104 buyers had collectively paid Rs 104 crore, remains unfinished, with no clarity on when it will be completed. The largest project in question is Paradise City in Palghar, where 2,047 flats were sold, contributing Rs 138 crore to the now-defunct company. Homebuyers from these projects are not just frustrated by the delays, but also the mounting uncertainty regarding their future. The collapse of HDIL came after the arrest of its promoters, Rakesh and Sarang Wadhawan, in 2019. The father-and-son duo were accused of being involved in a massive loan fraud linked to the P&M Cooperative Bank, which led to the company’s insolvency. While the promoters were released on bail in 2024, the legal battle over the company’s bankruptcy continues, causing further delays in the resolution of the homebuyers’ issues.
In 2019, the Bank of India initiated the corporate insolvency resolution process (CIRP) for HDIL, which is still awaiting approval from the National Company Law Tribunal (NCLT). Homebuyers, represented by individuals like Kishore Raheja, are calling for their claims to be addressed in the resolution process. Despite their appeals, it seems that homebuyers are not considered a priority in the ongoing legal proceedings. HDIL’s financial liabilities exceed Rs 8,000 crore, with significant dues to both secured and unsecured creditors. The company’s former promoter, Rakesh Wadhawan, has put forward a resolution plan to revive the company, but disputes between creditors and legal obstacles continue to delay progress. For the affected homebuyers, the long wait has taken a heavy toll. Many of them are now questioning if they will ever get the homes they paid for or if the legal proceedings will drag on indefinitely, leaving them stuck in a property crisis with no end in sight. As Mumbai’s real estate market continues to grapple with these unfinished projects, the plight of HDIL’s homebuyers serves as a poignant reminder of the risks involved in the property sector and the need for stronger safeguards for consumers in the face of corporate insolvencies.
