If you’ve ever driven down Mumbai’s JVLR (Jogeshwari-Vikhroli Link Road) or glanced out from a local train just before Bhandup station, you’ve probably spotted it—a massive, eerie structure looming in the distance. No lights flicker at night, no cars zip in or out, just a dust-covered skeleton of what was meant to be a 316-room five-star hotel: The Chedi Mumbai. Plagued by defense disputes, financial meltdowns, and legal tangles, this ambitious project never saw the light of day. Here’s the wild story of how a luxury hotel became a monument to real estate’s risks.
A Grand Vision That Never Took Off
Back in the early 2010s, Rajesh Lifespaces, a prominent Mumbai real estate developer, had big plans. They set out to build a luxury hotel on Kanjurmarg’s JVLR, targeting both business and leisure travelers. The location was prime—close to the airport, well-connected, with scenic views of Powai Lake and a central spot in Mumbai’s sprawl. The vision? A world-class property to rival the best.
By 2016, Rajesh Lifespaces partnered with General Hotel Management (GHM), a Singapore-based luxury hotel operator known for its Chedi brand. The plan was to launch “The Chedi Mumbai,” Mumbai’s first Chedi hotel, with a soft opening in 2016 and a grand opening within two to three years. Construction kicked off at breakneck speed, fueled by solid funding and the developer’s own cash. Unlike most skyscrapers that take years, this one rose fast. But then, the troubles began.
Legal Roadblocks: The Navy Steps In
In 2017, a legal bombshell hit. The hotel site was uncomfortably close to Kanjurmarg’s Naval Colony, also called Navy Nagar or “Rocket Colony,” a high-security zone for naval staff. India’s strict rules on construction near military zones prompted the Navy to demand a halt, citing security concerns. Work stopped, and Rajesh Lifespaces was dragged into a legal maze. They had their documents in order, but getting clearance from the Defense Ministry and Navy proved a nightmare.
By 2018, delays piled up, and the project’s future looked shaky. Then, in 2019, the Bombay High Court delivered a lifeline. Referencing a similar case where a nearby housing project was allowed, the court ruled that the Navy’s objections didn’t hold for this hotel. The construction ban was lifted, but the victory was short-lived. A bigger beast was lurking: financial collapse.
Money Troubles: A Debt Trap
While the legal battles cleared, Rajesh Lifespaces’ hospitality arm, Rajesh Business and Leisure Daniel Hotels, hit a massive liquidity crisis. By 2020, their debts ballooned to ₹621 crore, owed to three banks: ICICI Bank (₹331 crore), Bank of Baroda (₹162 crore), and Union Bank of India (₹128 crore). Unable to repay, the company was labeled a Non-Performing Asset (NPA).
Here’s the catch with real estate: most developers, even big ones, rely on high-interest, short-term bank loans to fund construction. Sales usually help pay these back quickly, but when a project like The Chedi stalls—say, due to legal issues—the interest keeps ticking. For Rajesh Lifespaces, the mounting debt became a noose. Unlike firms funding projects from savings, they were deep in the red.
Insolvency and a Glimmer of Hope
In 2020, with COVID-19 adding to the chaos, the banks pushed Rajesh Lifespaces into insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). ICICI Bank, the biggest lender, led the charge, initiating an auction to recover funds. Three companies bid to take over the derelict project:
- Sankalp Recreation: Offered ₹533 crore, with ₹30 crore upfront and the rest within 300 days.
- Shriram: Bid ₹474 crore, payable within 90 days.
- Rare ARC and Shree Naman Developers (joint venture): Bid ₹461 crore, including upfront payments and equity infusion.
In March 2023, the Committee of Creditors (banks and officials) picked Rare ARC and Shree Naman Developers as the best bet—financially sound and viable for reviving the project. It seemed like The Chedi might finally get a second chance.
A Shocking Twist
Just when things looked up, the National Company Law Tribunal (NCLT) threw a curveball in 2024. They rejected the resolution plan, citing procedural irregularities and non-compliance with statutory requirements. The deal with Rare ARC and Shree Naman was off, and construction hopes stalled again.
But the saga didn’t end there. In August 2024, the National Company Law Appellate Tribunal (NCLAT), the appellate body above NCLT, overturned the rejection. They upheld the creditors’ plan to hand the project to Rare ARC and Shree Naman, calling NCLT’s decision flawed. This legal rollercoaster gave temporary relief, but the project’s long-term fate remains cloudy.
What’s Next for The Chedi?
From 2017 to 2022, The Chedi Mumbai looked doomed. But the appellate court’s ruling and the involvement of financially backed companies hint at revival. A new owner with deep pockets could take over, finish the remaining construction, and renovate the structure. The region—Powai and Kanjurmarg—has boomed over the last decade, which could boost the hotel’s prospects.
The original plan was ambitious: 316 spacious rooms and suites with cutting-edge tech and lavish interiors, fine-dining restaurants, a holistic spa with Ayurvedic treatments, modern fitness centers, and state-of-the-art meeting rooms for business travelers. Its proximity to BKC and the airport made it a potential landmark. If it opens, it could debut with a bang, capitalizing on the area’s growth.
A Symbol of Risk
The Chedi Mumbai isn’t just an abandoned building; it’s a cautionary tale of real estate’s high stakes. Unlike most “abandoned” structures that once buzzed with life, this one never even got started. Legal battles, financial pitfalls, and bureaucratic hurdles turned a dream into dust. Will it rise again? Only time will tell.