A city civil court has dismissed the Indian Air Force's plea seeking a stay on construction on a plot in suburban Santacruz alleging that the Maharashtra Housing Area Development Authority (Mhada) had illegally encroached the land.

According to the Air Force, Mhada had usurped over 50 per cent of its 12.2 acre strip of land in suburban Santacruz, which was originally earmarked for a rifle range.

"The Mhada has approved annexure-II (eligibility list) for the slum scheme as the land owning authority. The land has, however, been in the possession of Air Force since 1964," advocate S R Rajguru appearing for IAF, argued.

Out of the total area, 6.22 acre has been transferred to Mhada, Rajguru said adding, "Four years ago, Shivalik Ventures got the rights to develop the land through the Slum Rehabilitation Scheme, which includes the rehab of over 26,000 slum dwellers."

The Mhada had, however, opposed the plea arguing that it had legal possession of the land, which had been given to it by the State government in 1971.

The IAF had sought a stay on the construction of a 14-storey building and to demolish the six buildings already constructed in the land. The court, while dismissing the plea, observed that when the six buildings were being constructed, the IAF had not objected to the development.

The IAF now plans to approach the Bombay High Court to appeal against the order.