MUMBAI, March 2 -- In a dispute over redevelopment of its staff quarters at Samata Nagar in Kandivali, the Maharashtra State Financial Corporation (MSFC) has initiated legal action against developer SD Corporation and has also approached the Maharashtra Real Estate Regulatory Authority (MahaRERA) seeking action against the firm. MSFC had appointed SD Corporation to redevelop its staff quarters in Kandivali on the condition that 40 flats would be handed over to the corporation. However, in 2019, it transpired that eight MSFC employees had allegedly received Rs.88 lakh from the developer towards rent and deposits. Additionally, four employees reportedly collected Rs.12.45 lakh in rent from MSFC. The developer is also said to have handed over eight of the 40 flats to these employees for their use. Terming this a breach of the redevelopment agreement and alleging misconduct by its employees, MSFC issued a notice to the developer. In September 2023, the Bombay High Court appointed retired chief justice RD Dhanuka as arbitrator in the matter. Meanwhile, even though matter was pending before the court, the developer expressed willingness to enter into a consent agreement with MSFC, which was executed on June 21, 2025. Accordingly, the developer agreed to hand over 12 flats, of 650sq ft carpet area each, to MSFC, in addition to the 40 flats in redevelopment. The developer also agreed that if it failed to deliver on time, he would give one more flat to MSFC. But the developer breached agreement and, of the 40 flats, gave eight flats to employees of MSFC without its consent. MSFC sent notices to the employees living in these flats and also asked them to repay the rent they had collected from the corporation. MSFC sought recovery of amounts allegedly received by certain retired employees residing illegally in the premises. State industries minister Uday Samant, in a written reply in the legislative council, said that MSFC had initiated a legal process against the developer....