The Supreme Court has ordered the suspension of BMC Commissioner Ashwini Bhide’s salary for November 2026 and imposed a penalty of Rs 5 lakh on the Brihanmumbai Municipal Corporation (BMC) for failing to comply with its directions to remove encroachments from land earmarked for a bus station project in Borivalli.
A three-judge bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana also issued a show-cause notice to Bhide, asking why contempt of court proceedings should not be initiated against her for non-compliance with its earlier orders.
The bench refused to grant the municipal corporation another 30 days to clear the encroachments, observing that its previous directions remained unimplemented.
During the hearing on Tuesday, the Court questioned whether municipal officials were acting in collusion with the encroachers. CJI Surya Kant described the continued non-compliance as a deliberate breach of the Supreme Court’s directions and indicated that the conduct of the officials could be recorded in the judicial order.
Justice Bagchi told the BMC counsel that the Commissioner would not receive her salary until December 1, 2026, and stressed that compliance must be ensured before then.
Rejecting the request for additional time, the Chief Justice said municipal officials should complete the necessary work even if it required them to pass orders late at night.
Contempt Plea Over Non-Removal of Encroachments
The proceedings arose from a contempt application filed by the project proponent, who alleged that the municipal authorities had failed to remove unauthorised occupants from the land intended for the bus station.
The Supreme Court had previously examined the corporation’s conduct on November 13, 2025, when it expressed concern that municipal authorities appeared to be retreating from their earlier position and responsibility regarding the removal of encroachments.
Before considering contempt proceedings, the Court had given the Commissioner an opportunity to submit a personal affidavit containing details of the occupants, notices issued to them, their responses and documents supporting any claims of tenancy or ownership.
The Court also required information about any enquiry conducted by municipal authorities to verify the authenticity of the documents submitted by the occupants.
Earlier Direction to Complete Removal Within Three Months
At a subsequent hearing on July 28, 2026, the BMC informed the Supreme Court that notices had been issued against the encroachers under the Maharashtra Regional and Town Planning Act, 1966.
The corporation, however, submitted that most of the occupants had initiated litigation before the civil court, complicating the process of removing the encroachments.
The Supreme Court rejected the suggestion that the pending civil proceedings prevented municipal authorities from acting.
The bench held that, in the absence of an interim stay granted by the civil court, the corporation was not legally prevented from pursuing the notices issued for removal of unauthorised possession.
It consequently directed the BMC to complete the necessary action within three months and submit a compliance report.
With those directions still unimplemented, the Supreme Court has now imposed financial consequences on the municipal corporation and its Commissioner while seeking an explanation for the continued failure to clear the project land.
