Poonam Chambers Case: HC Dismisses Petition, Seizes ₹10 Lakh Fine — NMC Gets 2 More Months for 7th Floor Demolition
Published: June 19, 2026 | Category: Nagpur Local | By: Nagpur Updates Desk
The Nagpur Bench of the Bombay High Court has taken stern action in the long-running Poonam Chambers illegal construction case — dismissing the petitioner’s plea, seizing nearly ₹10 lakh in fines, and issuing show-cause notices to NMC officials for negligence. At the same time, the court has granted NMC 2 additional months to complete the demolition of the illegal 7th floor of Poonam Chambers on Chhindwara Road.
Latest Development: June 19, 2026
| Detail | Information |
|---|---|
| Court | Nagpur Bench, Bombay High Court |
| Bench | Justice Anil Pansare + Justice Rajnish Vyas |
| Petitioner | Nandkumar Harchandani |
| Petition status | Dismissed |
| Fine seized | ₹9.97 lakh (deposited in Public Welfare Account) |
| NMC time granted | 2 more months for 7th floor demolition |
| NMC officials | Show-cause notices issued for negligence |
| Poonam Tower demolition | 100% complete |
| Poonam Chambers demolition | 7th floor pending |
The Case: 20 Years of Illegal Construction, 2 Years of Court Battles
To understand today’s order, it is essential to trace the history of this case — one that spans over two decades.
2004: NMC issued a notice declaring the 7th floor of Poonam Chambers completely illegal — the construction exceeded the sanctioned height by three metres. Shops were also illegally built in the basement area earmarked for parking.
2005: Former Corporator Vijay Babhre filed a petition before the Nagpur High Court alleging large-scale violations at Poonam Chambers.
2015-2024: Despite the HC petition and clear legal findings, NMC took no action for nearly a decade — a period the court has specifically described as “institutional silence” and “civic apathy.”
November 2024: The Supreme Court issued directions mandating strict action including demolition against illegal constructions across India. NMC was pulled up for not acting.
November 2025: HC directed petitioner Nandkumar Harchandani to present sanctioned building plans and ownership documents.
January 2026: HC directed NMC to take a “reasoned decision” by January 21 — rejecting NMC’s request for more time until February.
February 5, 2026: NMC launched demolition of approximately 70 illegal structures at Poonam Chambers premises, targeting the basement area first.
March 5, 2026: Petitioner stopped the demolition work — forcing NMC to step in and complete it. HC expressed strong displeasure.
March 2026: HC ordered petitioner to reimburse NMC’s demolition costs — NMC to submit cost estimate; petitioner given 2 weeks after receiving assessment.
April 2026: Poonam Tower illegal construction fully demolished. Poonam Chambers 7th floor still pending — NMC sought more time.
June 19, 2026 (today): HC dismisses petition, seizes ₹9.97 lakh fine, grants NMC 2 months for 7th floor demolition, issues show-cause notices to NMC officials.
What the Court Said Today
The division bench of Justice Anil Pansare and Justice Rajnish Vyas passed several significant orders:
Petition dismissed: The petitioner’s plea was rejected outright — the court having already declared the construction illegal and directed its demolition in previous orders.
₹9.97 lakh fine seized: The amount — deposited by the petitioner — has been seized and directed to be deposited in the Public Welfare Account. This is a strong punitive signal that the court treats the petitioner’s conduct throughout this case as deeply problematic.
2-month extension for NMC: The court gave NMC 2 additional months to complete demolition of the 7th floor of Poonam Chambers. This is a measured approach — granting time while maintaining judicial pressure.
Show-cause notices to NMC officials: In a significant accountability measure, the court issued show-cause notices to NMC officials for their negligence in this case. The fact that the 7th floor was declared illegal in 2004 and NMC failed to demolish it for over two decades is a failure the court is now holding specific officials accountable for.
What Has Already Been Demolished
The Poonam Chambers case has seen significant action in 2026 despite the headline issue (7th floor) still pending:
Poonam Tower — 100% demolished. All illegal structures in Poonam Tower have been removed.
Poonam Chambers basement — The approximately 70 illegal structures in the basement parking area (illegally converted to commercial shops) have been demolished.
7th floor — still pending — This is the original, primary violation. The floor that exceeds the sanctioned height by three metres and was declared illegal in 2004 is still standing. NMC now has 2 months to remove it.
The RBI Angle
An unusual dimension of this case involves the Reserve Bank of India — which was added as a respondent after a demand draft of ₹10 lakh submitted by the petitioner was returned by RBI with the remark “Wrongly Delivered.”
The court registry confirmed the remark was system-generated and the bank could not provide further clarification — leading the court to issue notices to both RBI and IndusInd Bank. The court had earlier accepted RBI’s apology but directed officials to tender apologies before the court registry.
Why This Case Matters for Nagpur
The Poonam Chambers case is not just about one illegal building. It is a landmark test of whether Nagpur’s civic and legal systems can actually enforce building regulations against established commercial properties.
The 20-year gap between the NMC’s own 2004 illegal-construction notice and the eventual demolition action in 2026 is a damning indictment of how enforcement works — or fails to work — for well-connected commercial properties in Indian cities.
This case shares DNA with the recent Ashish NX fire — where a commercial store illegally merged three residential buildings without permission, creating a deadly fire hazard. In both cases, the violations were known for years; action came only under extraordinary pressure.
Q: What is Poonam Chambers? Poonam Chambers is a multi-storey commercial building on Chhindwara Road, Nagpur. Its 7th floor was declared illegal by NMC in 2004 for exceeding the sanctioned building height by 3 metres. The basement was also illegally converted from parking space to commercial shops.
Q: Who is Nandkumar Harchandani? He is the petitioner in this case — associated with Kumar Hotels Private Limited — who has been fighting in court over this property. The court has repeatedly expressed displeasure over his failure to honour demolition commitments.
Q: Was the fine ₹10 lakh or ₹9.97 lakh? The amount seized was ₹9.97 lakh — which has been directed to the Public Welfare Account.
Q: When will the 7th floor finally be demolished? NMC has been given 2 more months from June 19, 2026 — meaning the deadline is approximately August 19, 2026.
Q: What happens to NMC officials who got show-cause notices? They must respond to the notices explaining why they failed to act on the illegal construction for over two decades. Depending on the response, disciplinary action may follow.
Accountability in Action — Slowly
The Poonam Chambers case is a slow-moving but ultimately meaningful example of judicial accountability forcing civic action in Nagpur. It took 20 years, a Supreme Court directive, multiple HC orders, a reluctant demolition, a stopped demolition, a ₹10 lakh fine, and show-cause notices — but the 7th floor is now finally coming down.
Nagpur Updates will track the NMC’s progress on the Poonam Chambers 7th floor demolition over the next two months and report the moment this 20-year-old illegal structure is finally removed.
