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The Bombay High Court has set aside a Brihanmumbai Municipal Corporation (BMC) order concerning pending payments of over INR 6.41 crore to a contractor for additional work on the Girgaon Chowpatty viewing gallery. The court noted that BMC relied on documents without sharing them with the contractor or allowing him to respond, violating natural justice. Contractor Mukesh Purohit had completed the project and received partial payment of INR 1.36 crore, but the balance remained unpaid. The court has directed a fresh hearing with all submissions considered before a new decision is issued.
The Bombay High Court recently quashed an order by the Brihanmumbai Municipal Corporation (BMC) in a dispute over pending payments for the Girgaon Chowpatty viewing gallery project. The project involved constructing a platform-cum-viewing deck with glass railings over a storm-water drain outfall, and it was completed and inaugurated in April 2022. Advertisement
The dispute centers on claims by contractor Mukesh Purohit, proprietor of Purohit & Company, who executed additional work after engineers discovered that the foundation rock lay at a depth of 24 metres, instead of the estimated 10 metres. This significantly increased construction costs, and consultants appointed by BMC confirmed that the extra work was necessary.
Purohit had received only INR 1.36 crore as partial payment, leaving over INR 6.41 crore unsettled. He had earlier approached the High Court in 2024, seeking directions for the release of the remaining amount. The court directed BMC to decide on his representation within a stipulated period, but the civic body failed to comply, prompting him to initiate contempt proceedings and file another writ petition.
In September 2025, the court had directed Assistant Municipal Commissioner Manish Valanju to grant a personal hearing and pass a reasoned order. However, Purohit alleged that the speaking order issued later and the corrigendum did not resolve the payment issue. Reviewing the matter, the High Court observed that BMC had relied on documents obtained after the hearing without providing the contractor a chance to respond, breaching natural justice principles.
The High Court has now set aside BMC's earlier order and directed that the matter be reheard, with all relevant documents provided to the contractor and his written submissions considered. The hearing is scheduled for March 18.
Purohit has stated that he had taken a bank overdraft to manage project costs and was paying interest due to the delayed payment. He warned that BMC officials withholding the funds would bear responsibility for his financial difficulties. The civic official acknowledged the order but said he had conducted a hearing and issued an order, without specifying further action.
This case underscores the importance of procedural fairness in civic contracts, especially for large-scale public infrastructure projects.
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