Bombay High Court Dismisses MIDC's Eviction Plea Against Embassy-owned Indiabulls Unit at Nashik SEZ

Bombay High Court Dismisses MIDC's Eviction Plea Against Embassy-owned Indiabulls Unit at Nashik SEZ

The Bombay High Court has rejected a petition filed by the Maharashtra Industrial Development Corporation seeking to evict Indiabulls Industrial Infrastructure Limited from a special economic zone development at Sinnar, Nashik, according to reports in October 2025. The company is now part of Embassy Developments following a merger. The court's ruling maintained interim relief that had been granted by the Nashik district judge in September 2024, which had stayed the eviction order issued by MIDC on February 29, 2024.

Origins of the SEZ Development Dispute

The dispute stems from a partnership agreement signed in 2007 between MIDC and Indiabulls to jointly develop approximately 2,500 acres into a special economic zone project. Under the agreement, MIDC held an 11 percent equity stake while Indiabulls controlled 89 percent. The total land was divided into two zones: 1,265 acres designated as the processing zone and 1,234 acres as the non-processing zone. Between 2007 and 2012, lease deeds were executed covering both zones.

MIDC's Allegations and Eviction Order

MIDC contended that portions of the processing area remained undeveloped, which it claimed violated the terms of the agreement. The development corporation issued show-cause notices to Indiabulls Industrial Infrastructure in 2022 and 2023 before passing the eviction order in February 2024. The corporation sought to reclaim the land based on these alleged violations.

Indiabulls' Defense and External Challenges

Indiabulls Industrial Infrastructure Limited argued that large-scale SEZ projects require numerous clearances and considerable time for completion. The company maintained that the non-processing zone had been fully developed as per requirements. Representatives highlighted external factors that hindered development, including the lack of 110 acres needed for railway siding infrastructure to transport coal, which was essential for the project's functionality.

Linked Thermal Power Plant in Insolvency

Adding complexity to the case, approximately 1,070 acres of the non-processing zone had been sub-leased to Sinnar Thermal Power, which invested over ₹9,000 crore in developing a thermal power plant on the site. The power company subsequently entered insolvency proceedings, with Mahagenco emerging as the successful bidder during the resolution process. This connection to a major insolvency case further complicated the dispute.

Court Upholds Interim Protection

The Bombay High Court observed that the interim protection previously granted to Indiabulls remained valid and enforceable. The court ruled that MIDC's eviction order cannot be enforced pending further legal proceedings. This decision represents a setback for MIDC's attempt to reclaim the land from the stalled SEZ project.

The outcome of this case could have significant implications for industrial land development and SEZ policy implementation in Maharashtra. With the project entangled in litigation and linked to a substantial power plant undergoing insolvency resolution, stakeholders in the industrial real estate sector will be watching developments closely. The case also highlights the challenges faced by large-scale infrastructure projects requiring multiple regulatory clearances and dealing with connectivity infrastructure like railway sidings.

Disclaimer: This news article is based on reported information available in the public domain. Readers are advised to verify details independently and consult legal or professional advisors before making any decisions based on this information. The content is for informational purposes only and does not constitute legal, financial, or investment advice.