seems, you can (if you residents wish) court on a logical plea of violation by the mcd of your rights as allottees / residents who bought the plots based on the privileges that the roads offered. if the pavements are taken away, you lose those privileges and should either be compensated by the mcd (as you are paying house tax to the corporation) or your privilege is restored/conserved. although, the land of the pavement belongs to the mcd, but the residents are stakeholders and have a right to move court, as the mcd cannot unilaterally look into the interests of the ever increasing number of one-time road tax paying new motorists and disregard the rights of long standing annually house-tax paying residents.
it could be a path breaking case in the history of urban planning. i am sure, everywhere in delhi residents were/are/would be faced with this situation -- which they tackled with a characteristic helplessness/resignation inherited through years of draconian/colonial rule.
i am working on your doc, which surely need more editing. i am willing to join the struggle, even the law case, as i feel it's an extremely pertinent struggle, which finally can decide the case of delhi -- whether it would be a cremation ground full of cars or a place of living with sensible transport!
love,