Mumbai, September 7, 2026: The Bombay High Court has allowed residential construction on two leased plots in Pune Cantonment, holding that the government cannot deny leaseholders their existing rights merely because defence authorities may seek to resume the land in the future.A bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad said a valid and subsisting lease cannot be treated as though it has already ended based on “hypothetical” future apprehensions.The court set aside orders passed by the Pune Cantonment Board (PCB) and defence authorities rejecting building proposals submitted by Nikhil Vithal Jhaveri, Kirti V. Jhaveri and Mamta Jain.The petitioners hold leasehold rights over plots at Survey No. 30, Bungalow No. 5, Queen’s Garden, Pune Cantonment. The plots form part of a larger parcel leased in 1944 for a period of up to 90 years. The present leases are valid until November 30, 2033.Defence Authorities Raise ObjectionsThe PCB had rejected the petitioners’ construction proposals in March 2025 after defence authorities objected under Section 238(3) of the Cantonments Act, 2006.The defence authorities argued that Pune was a land-deficient station facing an acute shortage of Officers’ Married Accommodation. They also raised concerns that permanent construction near the Headquarters Southern Command could pose security issues, make future resumption of the land difficult and result in financial liability for the government towards construction costs.Court Upholds Existing Lease RightsThe High Court, however, said such concerns could not override the petitioners’ existing contractual and statutory rights.“The objecti
on of Respondent Nos. 2 (Defense Estate Office, Pune Circle) and 3 (General Officer Commanding-in-Chief of the Headquarters Sub Area) proceeds upon a purported apprehension that the construction may make future resumption difficult, or rather, impossible. In our view, such an apprehension, however, cannot by itself justify defeating a presently subsisting contractual and statutory right,” the bench observed.The court also rejected the contention that permission could be denied because only a limited period remained under the lease.“The Respondents cannot, during the subsistence of that term, treat the lease as though it were already at an end,” the judges said, adding that the fact that around seven years remained could not “extinguish rights which the lease otherwise permits.”Safeguards Imposed On ConstructionWhile permitting construction, the court imposed safeguards to protect the government’s interests. The petitioners undertook to use the properties only as personal family residences and not for commercial purposes. They also agreed not to construct multi-storey high-rises or create third-party or builder rights over the plots.Also Watch: Bombay HC Refuses To Scrap ₹115.65-Crore Mithi River Project Suit Over Procedural ErrorFurther, they undertook not to claim any ex-gratia compensation for construction if the military resumes the land in 2033.The court directed the PCB to process and grant the necessary permissions within 30 days of the petitioners submitting the required formal undertakings.To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/