Supreme Court Directs MMRDA To Deposit ₹646 Crore With Registry In Reliance's BKC Project Dispute
The Supreme Court on Monday directed the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit approximately ₹646 crore with the Supreme Court Registry by November 6, 2026. The amount was earlier deposited by Reliance Industries Ltd. under protest towards a disputed demand for additional premium over an alleged delay in completing its Bandra Kurla Complex project.
A Bench of Justices Dipankar Datta and Sheel Nagu issued notice on MMRDA's challenge to the Bombay High Court's April 9, 2026 order quashing its ₹1,116 crore demand against Reliance. The High Court had directed MMRDA to refund the ₹646 crore deposited by the company on February 18, 2019, while allowing the authority to retain the amount for 90 days.
A Bench of Justices Dipankar Datta and Sheel Nagu issued notice and directed MMRDA to deposit the amount that the High Court had ordered it to refund to Reliance. The Bench also fixed timelines for the exchange of pleadings.
“You deposit by 6th of November.", the Court said.
During the hearing, the Bench referred to the operative portion of the High Court's order directing MMRDA to refund approximately ₹646 crore to Reliance and requiring the company's bank guarantee of approximately ₹1,312 crore to remain valid for a limited period.
Senior Advocate Abhishek Manu Singhvi, appearing for Reliance, submitted that Reliance was entitled to receive the refund against appropriate security, proposing that the amount be returned in exchange for a bank guarantee. He told the Bench:
“I am making a simple suggestion. Give me my ₹646 crores on my bank guarantee, in return. I would like a money decree today.”
Singhvi further indicated that Reliance was willing to furnish a bank guarantee to secure the amount.
The Bench thereafter issued notice on MMRDA's plea and directed the authority to deposit the amount ordered to be refunded to Reliance with the Supreme Court Registry. It directed Reliance to file counter by October 30 and rejoinder by MMRDA by November 6 and directed the matter for hearing after Diwali.
The Supreme Court was hearing Mumbai Metropolitan Region Development Authority's (MMRDA) chalenge against the Bombay High Court's April 9, 2026 order that quashed a 2017 show cause cum demand notice and a subsequent 2019 demand of Rs 1,116 crore against Reliance Industries, raised by the MMRDA as additional premium for an alleged delay in completing its Bandra Kurla Complex project, calling the action arbitrary and high handed.
The High Court set aside both the 2017 notice and the subsequent 2019 demand of over Rs 1,116 crore as unsustainable in law. It directed MMRDA to refund approximately Rs 646 crore deposited by Reliance while allowing the authority to retain the amount for 90 days.
The bank guarantee of about Rs. 1,312 crore furnished by Reliance Industries Limited was ordered to remain valid for the same period.