Runwal’s Central Park Faces Legal Fire Over ULC & Worker Dues.

Unmesh Gujarathi
9 Min Read

• ULC Violation Exposed in Pune Project

• Premier Workers Take Fight to High Court

Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
The Premier Employees Union has filed two writ petitions in the Bombay High Court against Runwal Group’s Central Park Phase-I project in Pune. Allegations include illegal land-use conversion in violation of ULC exemption terms and false NOC from the Labour Commissioner despite unpaid dues to over 200 Premier Ltd. workers.




Premier Employees Union moves Bombay HC against land misuse and unpaid labour dues

ULC Breach at Heart of Illegal Pune Land Sale

The Sprouts News Investigation Team (SIT) has accessed exclusive legal documents revealing that the Runwal Group acquired the Chinchwad factory land of Premier Ltd. in clear violation of a 1981 Urban Land Ceiling (ULC) exemption order. The land, originally reserved for industrial use, was illegally converted into residential development—now marketed as “Central Park Phase-I.”
Two writ petitions filed in the Bombay High Court challenge this redevelopment. The first seeks to cancel the Pimpri Chinchwad Municipal Corporation’s (PCMC) approval for land-use conversion and commencement certificate. The second petition demands revocation of the Labour Commissioner’s No Objection Certificate (NOC), which wrongly claimed that there were no pending dues to Premier Ltd.’s workers.
The Premier Employees Union, representing 204 employees, argues that the redevelopment violates multiple legal provisions, including the Urban Land (Ceiling and Regulation) Act, 1976; the ULC Repeal Act, 1999; and the Maharashtra Regional and Town Planning Act, 1966.
Runwal’s Central Park Faces Legal Fire Over ULC & Worker Dues.

Exemption Order Terms Clearly Prohibit Land Transfer or Change of Use

As per the exemption order dated 14 August 1981, issued under Section 20 of the ULC Act, Premier Ltd. (then Cooper Engineering Ltd.) was granted conditional exemption to hold 2.53 lakh sq. meters of land solely for industrial use. Clauses of the exemption explicitly prohibit:
•Any change of land use from industrial to residential
•Transfer or sale without prior approval from the Maharashtra government
•Any form of land alienation without fulfilling workers’ obligations
The Premier Employees Union alleges that these terms were blatantly violated when the land was sold to Runwal without clearance or settlement of dues. According to Clause 5(2) of the exemption, such a breach empowers the State to revoke the exemption and reclaim the land under Chapter III of the ULC Act.



Insolvency, Asset Sales & Worker Exploitation: A Timeline of Irregularities

Sprouts News Investigation Team (SIT) has verified that Premier Ltd. is undergoing Corporate Insolvency Resolution under the Insolvency and Bankruptcy Code, 2016. While financial disputes with creditors were ongoing, Premier Ltd.’s management allegedly sold the land to Runwal, bypassing workers’ claims and the legal requirement for government permission.
Despite giving indemnity bonds that worker dues would be cleared before any asset transfer, Premier Ltd. failed to fulfil these obligations. No retrenchment benefits, salaries, or gratuity have been paid to the workers since the factory ceased operations in March 2019.

Petition 1: Illegal Land Use Conversion

Filed under Articles 14 and 226 of the Constitution, this petition seeks to nullify PCMC’s permissions issued on 15 October 2019, which allowed land-use change and construction initiation. The petition cites breach of ULC Act provisions, Development Control Regulations (1985), and the Maharashtra Municipal Corporation Act, 1949.
Runwal’s Central Park Faces Legal Fire.

Petition 2: Fraudulent Labour NOC

The second petition targets the Labour Commissioner’s issuance of an NOC falsely certifying that no labour dues are pending. The Premier Employees Union contends that this facilitated fraudulent project approvals while workers remain unpaid.
The Sprouts News Investigation Team (SIT) has reviewed submissions that include prior government reports flagging ULC violations and representations ignored by both the PCMC and Labour authorities.

Detailed Land History: From Cooper Engineering to Premier Ltd.

The land in question—CTS Nos. 4510 and 4513 in Chinchwad—was acquired by Cooper Engineering through a mix of purchase and land acquisition before the enactment of the ULC Act. In 1976, the company applied for exemption under Section 20 of the Act and secured approval in 1981 for its expansion plans.
Later, through amalgamation, the land came under the control of Walchandnagar Industries Ltd., which then transferred it to Premier Ltd. with state approval in 1987. The exemption and land use terms, however, remained unchanged.
Premier Ltd. held similar exemptions in Dombivli, Solapur, and Pune, though only the Pune exemption (Exhibit B) covers the land now being developed by Runwal. The exemption order explicitly bars any third-party transfer or non-industrial use.



Worker Voices Silenced Amid Corporate Transactions

Workers allege that Premier Ltd. promised continued employment and alternative work locations after halting factory operations. However, machines were sold off, production never resumed, and workers were gradually sidelined. The petition highlights that no retrenchment notices were served, and no compensation was disbursed.
Documents reviewed by Sprouts News Investigation Team (SIT) show that PCMC and labour authorities failed to act on repeated representations submitted by the union regarding illegal land transactions and pending dues. This administrative apathy has forced legal escalation.
If the High Court finds merit in the petitions, Runwal’s Central Park Phase-I could face:
•Cancellation of development and layout approvals
•Legal injunctions halting construction or sales
•Criminal liability under ULC and municipal planning laws
•Potential worker compensation liability
The case also raises broader concerns over how municipal and state bodies supervise land repurposing, especially when workers’ rights and land laws intersect.

A Test Case for Land Governance in Urban Maharashtra

This landmark case will likely set a precedent for how ULC-exempt industrial lands can (or cannot) be transferred for real estate purposes. It underscores the need for accountability from urban planners, labour commissioners, and developers.
For the 204 affected workers, the battle is not just legal—it is a fight for dignity, wages, and rightful compensation. For the real estate sector, the case serves as a stark reminder that land history and regulatory compliance cannot be brushed aside for profit.

Also Read: MIDC Negligence Pushes Tribal Couple to Suicide After Barvi Promises Betrayed.

Regulatory Red Flags Ignored in Runwal’s Central Park Project

No MaHaRERA Updates for 3 Years

As per RERA norms, builders must update project details and status every quarter on the official MaHaRERA website. However, Runwal Group has failed to upload any status updates for Central Park Phase-I for the last three years, raising serious concerns about transparency and regulatory compliance.



Labour NOC Already Cancelled

The Labour Commissioner has officially revoked the No Objection Certificate (NOC) earlier granted to Runwal for the project. The revocation cites pending worker dues and procedural fraud. Despite this, the Maharashtra State Government has taken no action, and the project continues unchecked.

Sprouts SIT Findings

The Sprouts News Investigation Team (SIT) has verified both these lapses through official portals and RTI documents. The continuing silence from PCMC and the state administration points to systemic failure or potential collusion.
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With over 28 years of experience, Unmesh Gujarathi stands as one of India’s most credible and courageous investigative journalists. As Editor-in-Chief of Sprouts, he continues to spearhead the newsroom’s hard-hitting journalism.
Past Editorial Roles:
•DNA (Daily News & Analysis) •The Times Group •The Free Press Journal
•Saamana •Dabang Dunia •Lokmat
Education:
•Master of Commerce (M.Com) •MBA •Degree in Journalism
Beyond his editorial leadership, Unmesh is a prolific author, having written over 12 books in Marathi and English on subjects such as Balasaheb Thackeray, the RTI Act, career guidance, and investigative journalism.
A regular contributor to national dailies and digital platforms, his work continues to inform, challenge, and inspire.
• A journalist. A leader. A voice for the people.
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