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If you’ve overly driven lanugo Mumbai’s JVLR (Jogeshwari-Vikhroli Link Road) or glanced out from a local train just surpassing 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 would-be 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 manor developer, had big plans. They set out to build a luxury hotel on Kanjurmarg’s JVLR, targeting both merchantry and leisure travelers. The location was prime—close to the airport, well-connected, with scenic views of Powai Lake and a inside 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 tropical to Kanjurmarg’s Naval Colony, moreover tabbed 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 Upper Magistrate delivered a lifeline. Referencing a similar specimen where a nearby housing project was allowed, the magistrate ruled that the Navy’s objections didn’t hold for this hotel. The construction ban was lifted, but the victory was short-lived. A worthier yahoo was lurking: financial collapse.
Money Troubles: A Debt Trap
While the legal battles cleared, Rajesh Lifespaces’ hospitality arm, Rajesh Merchantry and Leisure Daniel Hotels, hit a massive liquidity crisis. By 2020, their debts ballooned to 621 crore, owed to three banks: ICICI Wall (331 crore), Wall of Baroda (162 crore), and Union Wall of India (128 crore). Unable to repay, the visitor was labeled a Non-Performing Asset (NPA).
Here’s the reservation with real estate: most developers, plane big ones, rely on high-interest, short-term wall loans to fund construction. Sales usually help pay these when 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 subtracting 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 vendition 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 probity infusion.
In March 2023, the Committee of Creditors (banks and officials) picked Rare ARC and Shree Naman Developers as the weightier 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 Visitor 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 2025, the National Visitor Law Appellate Tribunal (NCLAT), the appellate soul whilom NCLT, overturned the rejection. They upheld the creditors’ plan to hand the project to Rare ARC and Shree Naman, calling NCLT’s visualization 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 uplift 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 merchantry 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 x-rated building; it’s a cautionary tale of real estate’s upper stakes. Unlike most “abandoned” structures that once buzzed with life, this one never plane got started. Legal battles, financial pitfalls, and bureaucratic hurdles turned a dream into dust. Will it rise again? Only time will tell.
