Nagpur: In a significant development in the Poonam Tower and Poonam Chambers illegal construction case, the Nagpur Bench of the Bombay High Court has directed that the entire cost of the demolition of unauthorized structures be borne by the petitioner.
The court’s direction came during a hearing on Monday after the Nagpur Municipal Corporation (NMC) presented a detailed account of the ongoing demolition action ordered earlier by the High Court.
Advocate Jaimini Kasat, appearing for the municipal corporation, submitted a report on the progress of the demolition work. After hearing arguments from both sides, the bench comprising Justice Anil Pansare and Justice Nivedita Mehta ruled that the petitioner must reimburse the civic body for the expenses incurred in removing the illegal constructions.
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During the proceedings, the court also expressed strong displeasure over the slow pace of demolition at Poonam Chambers and the petitioner’s failure to honour earlier commitments. The petitioner, Nandkumar Harchandani, had earlier assured the court that he would remove the unauthorized construction himself. However, according to NMC’s counsel, the demolition work was stopped by the petitioner on March 5, 2026, forcing the civic body to step in and complete the process.
The court made it clear that the expenses incurred by the municipal corporation in removing the illegal structures in the parking area must be reimbursed by the petitioner.
The High Court also directed the municipal corporation to prepare an estimate of the demolition costs and submit it during the next hearing. A copy of the estimate will also be provided to the petitioner, who will have two weeks to deposit the amount after receiving the assessment. Once the demolition is completed, the final amount will be adjusted accordingly.
Meanwhile, during the hearing, contradictory claims emerged regarding how much of the structure had already been demolished, leading the court to indicate that a committee may be formed to verify the actual demolition progress.
The petitioner’s chartered accountant, Abhiruchi Ankit Agrawal, presented a progress report stating that the demolition of the basement area of Poonam Tower has been completed. The petitioner also argued that the first to eighth floors had already been demolished in 1991, and that the Nagpur Municipal Corporation had been informed at that time.
In the same matter, the Reserve Bank of India (RBI) also submitted its compliance report. Senior advocate Firdaus Mirza, representing RBI, informed the court that action has been taken against the concerned officials and they have been strongly advised.
The court accepted the earlier apology submitted by RBI but directed the officials to tender an apology before the registry within three working days. After completion of this process, the court ordered that RBI’s name be removed from the case proceedings.
The High Court also reiterated that the petitioner will have to bear the entire cost of demolishing the unauthorized portions of Poonam Tower, emphasizing that earlier assurances given to the court were not honoured.
