The Bombay High Court has cleared the way for the redevelopment of 141 acres of MHADA land in Goregaon (West) known as Motilal Nagar, marking Mumbai's largest MHADA colony redevelopment. The division bench comprising Chief Justice Alok Aradhe and Justice Bharati Dangre disposed of a PIL filed in 2013 against illegal constructions in the colony, allowing MHADA to proceed with the project through private developers via a bidding process.

The PILs were filed by Manjula Veeran and Tekchand Khanchandani in 2013, urging MHADA and BMC to demolish unauthorised constructions in Motilal Nagar I, II, and III. Originally housing 400 tenants, the colony had over 3,600 illegal structures by 2013. Responding to the PIL, the High Court directed MHADA to conduct a survey and devise a redevelopment plan. In 2018, MHADA estimated the project cost at Rs 21,000 crore, confirming that the compensation to the Construction and Development Agency (C&DA) would be through floor space index (FSI), with developers bearing all costs, including transit and rehabilitation expenses.

The redevelopment will ensure housing for existing residents, commercial users, and slum dwellers. As per MHADA’s 2021 bid process, three major developers - Adani, L&T, and Naman Developers, had submitted proposals for the project. With the litigation now resolved, the bidding process can proceed, paving the way for the largest housing project in the city.