Hiranandani Construction Scam Homes From The Poor

Indian businessman Niranjan Hiranandani has come under fire again with further questionable behaviour relating to his business Hiranandani Construction. In 1986 a 344 acre plot of land in Powai, Mumbai, was handed to Hiranandani's building firm under the agreement that it be used to build homes for thousands of underprivileged families in desperate need of homes. There was an 80 year lease included in the deal, and building work was supposed to commence as soon as possible.

Twenty six years later and Niranjan Hiranandani is being investigated amid allegations that he unlawfully used the land to build his own Hiranandani complex, shunning the plans for the much needed new homes.

Initially filed by the Maharashtra Police, the court has received a First Information Report which detailed how Niranjan Hiranandani entered into the agreement with the Indian State Government and Mumbai Metropolitan Region Development Authority, who only approached Hiranandani Construction under the pretense they were honest and reliable. Instead, Niranjan Hiranandani violated the terms of this signed agreement.

According to the agreement, Hiranandani Construction were supposed to build multiple homes sized no bigger than 430sq ft by 860 sq ft, in order to accommodate the thousands of disadvantaged families who desperately needed a home. But Niranjan Hiranandani misused the land and built larger homes of over 1,000sq ft and sold them at a higher price to wealthy locals, making a much larger profit. Comparing the plans with what has been built Social activist Santosh Daundkar uncovered that Hiranandani made significant changes to the structural plan, combining two flats into one larger flat, almost halving the amount of homes available, then selling them to the rich.

It is estimated that Hiranandani Construction made in the region of Rs. 45,000 crore (approximately $8 billion USD) from the scam; also leaving the poverty stricken families the flats were supposed to be for, without homes.

Special judge VA Daulatbadkar also read in the report, by Anti-Corruption Bureau (ACB), that Hiranandani had used his position within local government to bribe civil servants into allow his construction to be overlooked and the profits made were used to fund Niranjan Hiranandani's lifestyle and future business ventures.

Daundkar has helped lead the campaign to expose the corruption, presenting the ACB report, along with his own findings. Special judge VA Daulatbadkar was satisfied by the prima facie and has instructed that an official investigation take place as sufficient material has been presented to the court to support the claims made against Hiranandani in the land scam.

Niranjan Hiranandani has so far refused to comment.

Hiranandani Funding Businesses Using Black Money

Mumbai businessman Niranjan Hiranandani has been caught on tape profiting from government contracts. Hiranandani has been shrouded by controversy in recent years, however despite the court cases surrounding his businesses, Hiranandani has added another scandal to his ever-growing repertoire.

Telugu TV station TV9, renowned for their "sting" operations, have coaxed Niranjan Hiranandani into a meeting and exposed on camera his illegal and unethical business trading using black money.

Hiranandani is a well-known name in the Indian Construction world, his company 'The Hiranandani Group' handle many high profile contracts, a lot of them government funded projects. On camera   Niranjan Hiranandani is clearly visible and it is appears that he is talking to the undercover sting operative. They're discussing payment for a recent job that was completed and Niranjan is explaining to the undercover operative how he wants a specific portion of the payment to be paid via check, this is the money he will put through his books and is considered a clean income.

The remaining fee for outstanding work is to be paid solely in cash, this is the money which Niranjan Hiranandani will not declare, therefore paying no tax on it and leaving the Indian Government unaware that Hiranandani is overcharging his customers to make a dishonest income in addition to the profit already made from the money paid by the government. The corruption of these business deals is of the highest level, which is why TV9 exposed Hiranandani.

Corruption Over Conscience - Hiranandani Construction

The controversial construction of homes in Powai has ended in court with the Hiranandani Group walking away with only a slap on the wrist. Due to a number of legal loop-holes, and several changes in the law since 1986, Niranjan Hiranandani has walked from court today without punishment.

In a blatant violation of agreement and contract, Niranjan Hiranandani made a massive profit selling homes that were sold to rich Mumbai residents, but were originally intended for low-income families. In 1986, the state government and the Mumbai Metropolitan Region Development Authority signed an agreement with Niranjan Hiranandani leasing him the 344 acre land in Powai. The terms of this lease meant that the land was to be used for building a number of homes for the low-income families of the city. The Hiranandani Group, Niranjan's construction company, were to build these according to specifications agreed between all three parties.

During the initial stages of the agreement Hiranandani insisted on having the power of attorney, leading people to believe this may have been a pre-emptive move. Since 1989 Hiranandani Group have built 70 homes on the land, over half were twice as big as the pre-agreed 430 sq ft, thus reducing the number of available homes by a third. These larger homes were then sold by Niranjan Hiranandani to wealthy families, making more profit and cutting out the low-income families who desperately needed somewhere to live and raise their children.

It is alleged that Niranjan Hiranandani abused his power within the government, even threatening to withdraw his support from various healthcare and education groups, thus forcing civil servants involved in the corruption to pass approval on any permits and certificates, effectively legalising his violation of contract and alleviating himself from blame. A shrewd move to say the least.

It is unsurprising that a judge had no choice to but to find Niranjan Hiranandani innocent of all charges, however this absolve was made because of the law and not because of any moral agreement with the actions of Niranjan Hiranandani.

Unfortunately, because the various planning authorities did not object at the time of building, Niranjan Hiranandani was able to proceed within the confinements of the law. With lack of evidence to support the claims of the corruption, regardless of how obvious is was to all involved, the judge was unable to rule in favour of MMRDA, and more importantly to those families who were affected losing out on the homes that should have been for them.

The MMRDA were claiming losses of Rs 1993 crore (approximately $400,000 USD), which is money that could have been put towards another building project for the families in need living in Powai. Judge Justice Sawant commented "even assuming that the claimants (MMRDA and the state government) were entitled to claim any amount in respect of the alleged violations, these claims are clearly barred by the law of limitation..." It is unfortunate for the landowners that Niranjan Hiranandani had obtained exemption to rule by building his flats within the limits of the Urban Land Ceiling (Regulation) Act, which is now abolished. A representative from the MMRDA revealed that of the 574k sq m of land available (and reserved for the housing project), Niranjan Hiranandani had used only 76k sq m for low income housing, which is less than 14% of the total land available. The rest of the land he used for the luxury apartments, some measuring up to 4000 sq ft.

Niranjan Hiranandani is one of India's richest businessmen and is also the co-founder and current Managing Director of the Hiranandani Group.

Hiranandani Business Park Ruins Powai Housing Plan

Powai, Mumbai - land which had been reserved for a new housing initiative became the centre of a scam investigation following allegations it had been built on illegally. The 344 acre plot sat empty, ahead of preparation work that was due to mark the start of a mass housing project, helping to provide homes to thousands of Mumbai residents.

For reasons unknown, the Government of Maharashtra made a surprising decision to return the land to previous landowner, at the reduced price of Re. 1 per hectare. Power of Attorney at that time was Hiranandani boss, Niranjan Hiranandani - one of the wealthiest men in India.

Maharashtra Police stepped in to review the allegations that Niranjan Hiranandani and IAS officer Thomas Benjamin had claimed back the land as part of a scam, reportedly worth over Rs. 30,000 crore (approximately $5 billion USD). Once returned to his ownership, Hiranandani is reported to have illegally built a new Hiranandani complex, openly disregarding the conditions of the Urban Land (Ceiling and Regulation) Act, 1976, under which he claimed back the 344 acre plot. The land is reportedly worth Rs. 45,000 crore, considerably more than what Mr Hiranandani paid for it.

Following initial investigations the Anti-Corruption Bureau filed a First Information Report (FIR) against Hiranandani and Benjamin. This report was served under the allegation that Niranjan Hiranandani was in breach of the Prevention of Corruption Act, 1988, Urban Land (Ceiling and Regulation) Act, 1976, and the Maharashtra Regional and Town Planning Act, 1966. According to reports, Hiranandani was able to built his complex on the site, despite it being against the terms of the Urban Land (Ceiling and Regulation) Act, 1976, due to criminal conspiracy with various Civil Servants, who together pushed forward a deceitful promotion of the weaker sections of the act in an attempt to mask the more prominent sections which made his construction illegal. Hiranandani holds a key role within various Indian government bodies, private and social institutions, schools, and colleges; it is alleged he threaten to withdraw his support from these areas in a bid to blackmail the Civil Servants into agreeing to take part in the scam.

The initial housing project, had it gone ahead, would have meant homes built for thousands of Powai families. It is speculated that the reason for Niranjan Hiranandani demanding back the land was to prevent competition for his own housing development, Hiranandani Gardens.

Sale of properties in Royal Palms challenged - Hiranandani Construction

Activist Rajendra Thacker moved the High Court earlier this week demanding that developer Niranjan Hiranandani be restrained from selling properties in his project — Royal Palms Scheme near Powai — that is involved in a legal dispute.

Thacker questioned how the developer could obtain permission from the BMC for constructing 14 IT buildings and 70 residential buildings, including 50 bungalows, in spite of no commercial development was permitted in the scheme of slum rehabilitation.

He claims that the builder took advantage of the fact that the case pertaining to the scheme is pending and there is no order pertaining to it. Thacker approached the court after an advertisement was published in a newspaper for sale of 6,000 sq m of land, which is part of the scheme.

Medha-led NAPM files caveat in SC on Hiranandani Group’s Powai project

The National Alliance for People’s Movements (NAPM) has filed a caveat in the Supreme Court seeking that the NAPM be given a hearing in the matter of Hiranandani Gardens, before the court gives its decision, said NAPM convenor Medha Patkar on Friday.

Patkar was reacting to reports that the group is exploring the option of appealing against the Bombay High Court order of stopping the developer from constructing any further in its Powai project. 

“While the Urban Land Ceiling Act required the developer to hand over land in excess of 500 sq m to the government, the project was granted exemption under the condition that the developer would construct smaller houses for the poor. But the project has only palatial homes of 2,000 sq ft and above,” said Patkar.

She added that the 230 acres were acquired by the MMRDA from local villagers at Powai and Tirandaz. It was later handed over to the group at 40 paisa per acre, on condition that they would construct affordable housing. 

“We have filed a caveat saying that unless our side is heard, the apex court should not give a decision,” she said. A tripartite agreement for the Powai Area Development Scheme was signed between the developer, MMRDA and state government. 

The High Court has directed Hiranandani to stop further construction unless around 3,100 affordable houses of 430 and 861 square feet are set up. Moreover, as per rules, the state government should be given 450 flats at a rate of Rs 135 per s ft.

Hiranandani Construction withdraws plea against HC order

Hiranandani Developers had moved the apex court against a construction freeze ordered by Bombay High Court in Powai.

Hiranandani Developers on Friday withdrew its appeal challenging an order by the Bombay High Court that restrained the company from carrying out any new construction in Powai Area Development Scheme (PADS). The realty group took the step after the Supreme Court seemed unimpressed with its plea for lifting the construction freeze.

This is the second setback to the company in the past 40 days. The High Court had issued the order on February 22 while hearing three public interest litigations, which allege that the company violated an agreement for affordable housing with the State and MMRDA by building expensive apartments in Powai.

The group later moved the apex court against the order, citing various grounds. On Friday, the appeal was heard by a division bench of Justices HL Dattu and Chandramauli KR Prasad. After making a slew of arguments, senior counsel Mukul Rohatgi, who represented Hiranandani Developers, sought permission to withdraw the appeal.

Apart from halting new construction in Powai, the High Court had directed MMRDA to provide details about the total construction done in PADS, vacant land and the number and size of affordable tenements in the area. The court, which is expected to hear the matter on April 19, also asked authorities to provide a list of buyers.

It said that Hiranandani Developers would be allowed to continue construction work in Powai only after the data was submitted. The court, however, clarified that the company would be permitted to build only low-cost flats measuring 430 sq ft and 861 sq ft.

The flats - in all 3104 - would have to be sold to the government at the concessional rate of Rs 135 per sq ft. The ongoing realty rate in the area is between Rs 20,000 and Rs 22,000 per sq ft.

The directives were issued on PILs filed by social activist Medha Patkar and city residents Kamlakar Satve and Rajendra Thacker. The petitioners have claimed that there has been “complete breach” of the 1986 agreement between the realty group, State and MMRDA.

The agreement required the group to build homes for economically weak sections on a 240-acre plot in Powai and hand over 15 per cent of the developed area to the government. The company, however, constructed homes for affluent classes, the petitioners have alleged.

They have accused officials of turning a blind eye to the violations, and sought their prosecution as well. The court has refused to direct authorities to initiate criminal proceedings against parties concerned, but it has allowed the petitioners to lodge police complaints. Patkar’s counsel, YP Singh, said on Friday that she was planning to file a complaint.

Opposition demands probe against Hiranandani Construction arm for duty evasion

The Maharashtra Government should conduct an inquiry against Roma Builders, a subsidiary of Hiranandani Group, for stamp duty evasion of about Rs 140 crore, said Mr Eknath Khadse, Leader of Opposition, in the Legislative Assembly on Friday. Mr Khadse said that Roma Builders has acquired over 3 lakh sq. m in Thane. 

The land value in 2008 was computed at Rs 271 crore but by 2010, when the land deal actually happened, it was reduced to Rs 178 crore. The State Government officials have undervalued it using loop holes in the ready reckoner rate, he said.

He pointed out that Hiranandani has been asked by the Supreme Court to provide tenements to 3,500 from the low-income group in Powai. Since Hiranandani complex in Powai has only six acres of open land, the land in Thane should be used for building the low-income tenements, Mr Khadse said.

“In a number of instances across the State, it has been found that there is a huge stamp duty evasion by private parties and the State Government officials are in cahoots with them,” he said. The State has old land and revenue records based on the outdated British system. This system has led to a number of litigations. Latest land records using advance satellite imaging technology is the need of the hour, he said.

1.13L sqmt Powai land may go for affordable housing - Hiranandani

According to a report submitted in the Bombay high court by the Mumbai Metropolitan Region Development Authority (MMRDA), nearly 1.13 lakh square metre buildable area is likely to be made available for low-cost housing in Powai Area Development Scheme (PADS), being developed by Hiranandani Developers at Powai.

The MMRDA’s report submitted on Thursday stated that about 1,13,357 square metre of total buildable area is still available in the area of the scheme designed for affordable housing with a planned development.

The planning authority submitted the report in pursuant to an earlier high court order, datedFebruary 22, that also restrained the Hiranandani developer from any further development of the Powai township before constructing the affordable houses, as contemplated under the tripartite agreement between the developer, the state government and the MMRDA.

Further, MMRDA’s advocate Kiran Bagalia informed the high court that, “While the Brihanmumbai Municipal Corporation — the planning authority for PADS — has sanctioned all the plans, it has informed MMRDA that two sectors included in the lay-out plan of the scheme do not exist.”

Adding that the report was not complete as inadequate information was available about the two sectors, Bagalia sought more time to submit the final report.

Earlier, the division bench of chief justice Mohit Shah and justice Roshan Dalvi retrained any further construction by the developer while hearing PILs filed by noted social activist Medha Patkar and city residents, Kamlakar Satve and Rajendra Thackar. The newly-constructed tenements were to be handed over to the Maharashtra government at the rate of Rs135 per square feet.

Also, the court had directed the MMRDA to prepare a detailed statement of the total construction put up in the scheme area, balance open land available, number and area of tenements constructed and a list of their purchasers.

SC refuses Hiranandanis' plea to resume work at Powai township

The Supreme Court today refused to entertain Mumbai's Hiranandani Developers' plea against the Bombay High Court order restraining it from carrying out any further development activity at its suburban Powai township, without providing flats for the weaker section of the society.

A bench of justices H L Dattu and Chandramauli K Prasad said it cannot interfere with the high court's order "at this juncture" and prompted the real-estate major to withdraw its plea. "After arguing the matter for quite some time, senior counsel, Mr (Mukul) Rohatgi, requests the court to permit him to withdraw the petitions. Permission sought for is granted," the bench said.

While declaring the special leave petitions as "disposed of as withdrawn", the bench declines to disturb the high court order which had said that the development in 'Pawai Area Development Scheme' on 230 acres of land was meant for affordable houses of 400 and 800 square feet, as per the tripartite agreement among the State Government, the Mumbai Metropolitan Region Development Authority (MMRDA) and the original land owners.

On a public interest litigations, alleging violation of the tripartite agreement, which also provided for construction of affordable houses for the poor, the Bombay High Court on February 22 had, in an interim order, restrained the builder from carrying out any further developmental activities on the project.

The public interest litigations at the high court against Hiranandani Developers had pointed out that the real estate major was allowed to build the township on the condition that it must build a certain number of flats for the weaker section of the society. Such flats were to be of smaller size, to make them affordable.

The developer, however, got around this requirement by "amalgamating" such smaller flats or selling adjoining flats to different members of the same family (from affluent classes), the PIL had said. The high court had said the developer "shall not put up any further construction in remainder of the plot before specifying vacant land and buildings that can be constructed".

It had directed Hiranandani to construct 1,511 flats of 40 square meters area each and 1,593 flats of 80 square meters area each without amalgamating. "No two flats shall be sold to the same person or two members of the same family," it had said. It said the developer would not carry out any other construction in Powai Area Development Scheme (PADS) unless High Court allows it.

Supreme Court rejects Hiranandani’s petition regarding Powai project

The apex court upholds the Bombay High Court’s decision to stop sale of plots for mass housing project that were merged and sold for Rs7 crore each instead. The Supreme Court no Friday rejected the special leave petition (SLP) filed by Mumbai-based builder Niranjan Hiranandani against the Bombay High Court order that restricted the developer from further construction and sale of flats under the Hiranandani Gardens project at Powai.

Commenting that it is not viable to interfere with the Bombay High Court’s order at this juncture, the apex court asked the developer to withdraw the petition. The next date of hearing in the Bombay High Court is on 12th April.

Mr Hiranandani had signed a tripartite agreement with the Maharashtra government and MMRDA (Maharashtra Metropolitan Region Development Authority) along with the original landowners; by which 240 acres of land in Powai under ‘Pawai (Powai) Area Development Scheme’ was supposed to be used for a mass housing project. These flats were to be of 400 sq ft-800 sq ft in area.

However, Mr Hiranandani built some 70 towers, which house around 4,000 families. The plots were merged to form 4,000 sq ft to 5,000 sq ft units, which were sold at a price as high as Rs7 crore. Around 15%-20% of the land is yet to be developed.

While hearing a PIL filed by Medha Patkar on behalf of Bachao Ghar Banao Andolan of National Alliance of People’s Movements (NAPM), the Bombay High Court had ruled on 22nd February that all construction on site be stopped and no flats to be sold before allotting homes to weaker sections. The court also ordered the developer to build 3,100 affordable homes of the size mentioned in the tripartite agreement and to offer these flats to lower income customers at Rs135 per sq ft.

Mr Hiranandani filed an SLP in the Supreme Court against the decision of the Bombay High Court. However, the apex court upheld the Bombay High Court order and refused to interfere.

Advocate-activist YP Singh, who had earlier argued the case for NAPM in the Bombay High Court, said that the activist organisation will soon be filing a criminal complaint against the accused persons under the provisions of Prevention of Corruption Act, 1988 and Indian Penal Code, 1860. In the PIL, the state government and the MMRDA are also named as respondents.

After Supreme Court snub, activist to file case against Hiranandani

Former IPS officer and lawyer Y.P. Singh, representing social activist Medha Patkar, said on Friday that they would now file a criminal complaint against builder Niranjan Hiranandani and other government officials with the Economic Offences Wing. 


Mr Singh announced this after the Supreme Court on Friday refused to entertain Hiranandani’s plea against the Bombay high court order restraining it from carrying out any further development in its Powai township without providing flats for the weaker section of the society.

“The entire 240 acres of land at Powai was meant for mass housing, with half the flats at 430 square feet and the other half at 860 square feet. Despite the stipulation being clear and specific, the public servants, mainly from the MMRDA, BMC and Mantralaya, connived with the builder one after another to build palatial flats instead,” Mr Singh said. He added that they would demand that the existing buildings be demolished, as they were constructed in violation of norms.

Hiranandani township resident Rahila, a marketing professional, said the residents should not be penalised for the builder’s violations. “What were the authorities doing when all this happened? They were the ones who granted all the permissions, so why should we be penalised?” she said.

Meanwhile, Mukul Rohatgi, Hiranandani’s lawyer, said, they would move the high court again. “We will show the HC that we have committed no breach of the tripartite agreement.”

Supreme Court takes Hiranandani to task

The Supreme Court on Friday refused to dilute the Bombay high court order that stopped Hiranandani Developers from carrying out further construction at its Powai township without first providing affordable housing.

Abench of Justices H L Dattu and C K Prasad was severe in its criticism of the developers for blatantly breaching a 1986 agreement with the state government and the MMRDA by which the group was allowed to develop 230 acres of land in Powai to construct affordable houses and hand over part of them to the state at cheap rates.

"We feel so sorry that private land was purchased by the government and given to you for development. That place was meant for below middle class people. But you built palaces for those who can afford Bentleys and Ferraris," the bench said.

In 1986, the state passed an award determining the compensation at the rate of Re 1 per hectare for the lands acquired from landholders. In return, the Hiranandanis were to construct affordable flats-half of 431 sq ft (40 sq m) and the rest of 861 sq ft (80 sq m). Beyond this, 15% of the flats were to be given to the state at Rs 135 per sq ft.

The palatial houses built by Hiranandani Developers in Powai in violation of the agreement with the state government had prompted the Bombay high court to pass an order on February 22, directing the developer to stop all construction activity on the remaining plots under the Powai Area Development Scheme (PADS) and specify the vacancy position before the court. The HC order came in the wake of a public interest litigation filed by a group of social activists led by Medha Patkar, and two local residents.

The high court had directed the Hiranandanis to construct around 3,100 affordable houses-1 ,593 flats of around 861 sq ft (80 sq m) and 1,511 flats of 430 sq ft (40 sq m). Around 450 apartments from this lot, the court said, have to be offered to the state at a rate of Rs 135 per sq ft, which the government can then sell to its employees. Once these instructions have been complied with, the court said, the developer would have to take its permission and only then can it can embark on making further construction on the remaining land. The could had also allowed the petitioners to file criminal cases against the builder and "errant" government officers.

The Supreme Court bench on Friday asked senior advocates Mukul Rohatgi and Gopal Subramanaim, "As it is, middle class people in Mumbai are residing on roads. Can they afford even a square inch of land?"

When Rohatgi attempted to justify the developer's action by referring to the buildings and hospital built by them as part of PADS, the bench said, "The quality of houses is bound to be the best as it is for those people who can afford Bentleys and Ferraris . What we see is palaces-... Can you show us if you have built even a single house of 40 or 80 square metre?"

MMRDA counsel Shekhar Naphade informed the bench that "there has been rampant collusion between the officials of MMRDA and the developer in how the agreement was breached."Though the court permitted the Hiranandanis to withdraw their appeal and pursue options before the Bombay high court, the court did not mince words and said, "It is all an eyewash. What are we doing in this country.... Do we encourage only a set of people in this country. Do other persons not have a right too?"

SC setback for Hiranandani; fate of 9,000 rests with HC

In a major setback to Hiranandani Developers, the Supreme Court (SC) on Friday refused to entertain its plea against a February 22 Bombay high court (HC) interim order that restrained it from carrying out further development in its Powai township before constructing affordable homes. The SC decision will have serious repercussions on Hiranandani’s 230-acre housing project in Powai if implemented retrospectively as it will decide the fate of over 9,000 people staying in the locality.

However, everything hinges on the final HC order on April 19. During the hearing of a PIL filed by activist Medha Patkar, the HC will get a report from the Mumbai Metropolitan Region Development Authority (MMRDA) and the Brihanmumbai Municipal Corporation (BMC) with whom the developer signed an agreement in 1986 to develop 92.93 hectares of land under the Powai Area Development Scheme and build small, affordable flats for low-income groups.

Advocate YP Singh, who represents Patkar in court, said all 92.93 hectares of land in Powai was meant to construct mass houses for lower and middle income groups. However, a majority of the area has been developed by building palatial residential homes and commercial complexes.

“The court order should be implemented retrospectively even though residential and commercial complexes were sold to people. It is the responsibility of the developer to compensate them. BMC and MMRDA officials are equally responsible because they are hand-in-glove with the developer for the past 28 years. Poor people lost affordable houses because of them and it resulted in a rise in property prices,” said Singh.

Real estate experts said if the interim order becomes the final directive, it will be a cause of concern as over 9,000 people have houses and commercial places in the area developed by Hiranandani in Powai.

“I don’t think there will be any change in the area already constructed and developed. The developer has constructed huge hotels and several commercial and residential complexes. 

It is very difficult to evict them at this juncture. The authority has not yet taken a decision on demolishing illegal houses in Ulhasnagar. They cannot even evict slum dwellers, so it is difficult to evict people who have bought luxury houses with their hard-earned money. The matter may get resolved by charging a heavy penalty, but nothing is clear at this moment,” said a real estate expert requesting anonymity. Hiranandani Developers managing director Niranjan Hiranandani refused to comment saying the matter is sub-judiced.

Hiranandani withdraws plea in SC on Powai land issue

The Supreme Court on Friday refused to entertain Hiranandani Developers’ plea against the Bombay high court order, which restrains it from carrying out any further development activity in Powai until it provides flats for the weaker sections of the society. The real estate firm is behind the development of the upmarket township in Powai, which has made the suburb a plush residential-cum-shopping hub.

A bench of justices HL Dattu and Chandramauli K Prasad said it cannot interfere with the February 22 high court order and prompted the developer to withdraw its plea.

The high court order had stated that the development of the Powai Area Development Scheme (PADS) on 230 acres of land was meant for affordable houses of 400 and 800 square feet, as per the agreement among the state government, the Mumbai Metropolitan Region Development Authority and the original landowners.

Apart from forbidding further construction, the high court had also directed the MMRDA to prepare a statement detailing the total construction done in PADS, the balance open land under the scheme, the number and area of tenements constructed and a list of purchasers. It has posted the matter for further hearing on April 19.

According to the high court order, the developer will require to construct 1,511 tenements admeasuring 400 square sq ft and 1,593 of 800 sq ft tenements and sell them to the state government at a concessional rate of Rs. 135 per sq ft.

The directives were issued on public interest litigations filed by social activist Medha Patkar and city residents Kamlakar Satve and Rajendra Thacker, seeking resumption of 240 acres of land in Powai and Tirandaz villages, which were taken over by the MMRDA for providing affordable housing.

The petitioners alleged that it was a complete breach of the agreement executed on November 19, 1986.

The developer blatantly breached conditions in the agreement and state and MMRDa officials turned a blind eye towards the violations. The petitioners had sought the prosecution of the government officials for negligence, but the court had refused to direct authorities to initiate criminal proceedings against the concerned.

It has, however, granted the petitioners the liberty to lodge criminal complaints against those concerned.

On Friday, YP Singh, Medha Patkar’s counsel, said the petitioners are planning to file criminal complaints in accordance with the liberty granted to them.

Hiranandani may raze parts of its buildings in Mumbai

Hiranandani Developers may have to demolish some of their existing structures in order to build low-cost housing in the Powai Area Development Scheme (PADS) within their Powai township.

The Mumbai Metropolitan Region Development Authority (MMRDA) had filed a report in the Bombay high court stating that nearly 1.13 lakh square metres of buildable area in the Powai township qualifies for low-cost housing.

As per the February 22 order of the HC, Hiranandani has to first construct 1,511 flats of 40 square metres and 1,593 flats of 80 square metres without amalgamating any flats before undertaking any other construction work in the township.

But according to the developer, the 1.13 lakh square metre area is not sufficient to construct 3,104 flats. Aspi Chinoy, legal counsel for Hiranandani, informed the court that they are willing to demolish some of the construction that has come up to plinth level. “There are around 8-9 buildings which have been constructed up to the plinth level. Also, there are certain plots for which only construction plans have been sanctioned. We are willing to demolish the plinth level structures and resubmit plans for the40 sq m and 80sq m flats,” said Chinoy.

A division bench of chief justice Mohit Shah and justice Roshan Dalvi has asked the Hiranandanis to submit the plans for the low-cost housing project within two weeks. The Brihanmumbai Municipal Corporation (BMC) has been asked to consider the same expeditiously.

The high court has clarified that Hiranandani can go ahead with the construction of the low-cost housing if the BMC and the authorities concerned grant it an Intimation Of Disapproval (IOD) or a Commencement Certificate.

Submitting a report, Chinoy said that 80 buildings have been constructed completely. Commercial premises occupy 1.19 lakh sq m of the total area in the township.

Chinoy sought clarification whether they would be getting an exemption on 15% of these flats, which could be used for commercial purposes. Kiran Bagalia, advocate for the MMRDA, pointed put to the court that as per their tripartite agreement, there was no such clause.

Earlier, the HC had restrained development while hearing a public interest litigation filed by noted social activist Medha Patkar and city residents Kamlakar Satve and Rajendra Thackar. The HC has kept the PILs for hearing on June 21.

Hiranandani to submit plans for low-cost homes

Real estate developer Niranjan Hiranandani will submit plans within two weeks to begin construction of affordable houses of 40 and 80sq m areas in his Powai township.

After the Supreme Court declined to dilute the February ruling of the Bombay high court or stay the order that banned him from undertaking any construction till he provides affordable housing, the developer was before the HC on Thursday.

His lawyers, senior counsel Aspi Chinoy, Dinyar Madon along with Parimal Shroff, showed maps to point out the open space position on which the developer would now build the houses.

His contention was that the court must take into account the 15% commercial construction permitted under DCR while calculating the area on which these tenements are to be constructed. He claimed he ought to build them on a reduced land size.

The bench headed by Chief Justice Mohit Shah asked the builder to first begin construction of the houses as directed. The court posted the matter to the third week of June for a progress report and did not consider the builder's argument on commercial construction.

The HC, on February 22, passed its order which stopped the developer from going on with his lavish constructions. The judgment was on a PILfiled by activists who said that the developer had flouted a 1986 tripartite agreement with the state and MMRDA which allowed him to develop 230 acres in Powai and construct affordable houses and hand over partto the state.

The HC held that the developer flouted the agreement and the SC orally expressed its displeasure. "That place was meant for below middle class people. You built palaces for those who can afford Bentleys," it said.

In 1986, the state passed an award determining the compensation at the rate of Re 1 per hectare for lands acquired from landholders. In return, the developer was to construct affordable flats.

The HC directed the Hiranandanis to construct 3,100 affordable houses (1,593 flats of 80 sq m and 1,511 flats of 40 sq m). Around 450 of these apartments, the court said, have to be offered to the state at a rate of Rs 135 per sq ft. Once these instructions have been complied with, the developer would have to take permission to embark on further construction.

High court curbs Hiranandani Construction from further development in Powai

The court was hearing public interest litigations filed by social activist Medha Patkar and city residents Kamlakar Satve and Rajendra Thakkar seeking resumption of 230 acres of land of Powai and Tirandaz villages, taken over by MMRDA for planned development under PADS.

The main purpose of the scheme was to provide good quality affordable housing to the middle class population. The petitioners alleged there was complete breach of a tripartite agreement executed between the state government, MMRDA and the Hiranandani Group, as power of attorney holders of the original landholders on November 19, 1986.

 According to the agreement, the developer was to construct tenements admeasuring 40 square metres only in equal proportion on the land available for construction, and hand over 15 per cent of the constructed area to state government at Rs135 per square feet.

However, the petitioners alleged, the developer blatantly breached both these conditions and the officers of the MMRDA and state government turned a Nelson’s eye towards the violations. The petitioners alleged the negligence on part of the government officials was of criminal nature and, had, therefore sought their prosecution.

Though the court has granted the petitioners liberty to lodge criminal complaints against the concerned persons, the judges have refused to direct the authorities to initiate criminal proceedings as prayed for.

The court has now posted the matter for further hearing next month, when further orders are likely to be passed on the issue. 

Hc jolt for Hiranandani Construction in Powai

“The development shall not put any further construction whatsoever in the remainder of the plot before specifying vacant land and buildings that can be constructed,” the HC said in its order running into more than 30 pages.

The court said that the developer would be entitled to commence any further construction only after obtaining specific permission from the court. The HC observed that the very purpose of the tripartite agreement was to construct smaller flats for affordable housing.

“The developer as well as the flat purchasers appear to have thrown this essential requirement to the winds,” the court observed. “Consequently, the land was leased upon a pittance of Rs1 per hectare came to be developed as a goldmine realising from such investment millions of rupees worth of real estate.”

The developer has been directed to construct 1,511 flats of 40 square metres and 1,593 flats of 80 square metres without amalgamating any flats. “No two flats shall be sold to the same person or two members of the same family,” the court ordered.

The direction came in the wake of allegations in the PIL that in order to overcome some development conditions, the developer had constructed amalgamated flats or sold adjoining flats to different members of the family.  The PIL further alleged that the flats were converted for commercial use, thereby breaching the terms of the agreement and conditions imposed under the Urban Land Ceiling Act.

Another condition set by the HC for further construction is that the developer shall sell to thje state government 15% of the total FSI consumed in plot in form of constructed tenements at Rs 135 per square feet.

HC Halts Development in Powai Complex

The Bombay high court on Wednesday passed an order restricting Hiranandani Developers from developing Powai’s plush Hiranandani complex any further without the prior sanction of the court. The HC has also asked the developer not to amalgamate smaller 40 sq m and 80 sq m flats into bigger flats while constructing the required number of flats for economically weaker sections without the HC’s nod.

The court also asked the MMRDA, the petitioners and the developer to prepare a statement of all the buildings and structures developed by Hiranandani under the Powai area development scheme (ADS), along with their names and descriptions of the flats within four weeks. The MMRDA has also been asked to prepare a plan showing the vacant plots in where buildings can be constructed. The order came one petitions and PILs filed by activists Rajendra Thacker and Medha Patkar since 2008. The petitioners had alleged that Hiranandani Developers, which had entered into a tripartite agreement with the MMRDA and state, did not abide by the terms and conditions of the agreement.

According to the agreement signed on November 19, 1986 regarding 230 acres of land in Powai and Tirandaz villages, Hiranandani would develop an area of 7,38,605.29 to build flats admeasuring 40 sq m and 80 sq m lower-income groups and was to give 15% of the flats to government employees. The petitioner pointed out that the developer amalgamated smaller flats to rich buyers paying hard cash.

In its order, the HC has not only asked the developer not to amalgamate flats while building 1,511 flats admeasuring 40 sq m and 1,593 flats of 80 sq m, but also asked Hiranandani to give 15% of the flats that will be developed henceforth to government servants, all of which the government will distribute with transparency.

Significantly, the HC has given petitioners the permission to file any criminal complaint if they have a suspicion that the terms of the tripartite agreement were being breached. The court also allowed the MMRDA to move the appropriate forum for any compensation it might think is due from the developer. 

Hiranandani Group power plant halted after Supreme Court stay

The Supreme Court of India has ordered a stay on the continued construction of Hiranandani Group’s Rs 12,000 crore power project near Pune. The construction power house is creating a 2,500 MW gas-based power plant at Navlakh Umbre village in Maval taluka on the outskirts of Pune, however allegedly only gained permission for a 355 MW construction.

After being notified of a petition which alleged that due process was not followed when gaining an environmental clearance certificate for the project. The Supreme Court stated that the clearance was awarded “in compliance with the peremptory direction of the Bombay High Court”.

The State Environment Impact Assessment Authority (SEIAA) had witnessed that the Hindustan Electricity Generation Co. Pvt. Ltd., which is a Hiranandani-group subsidiary, had began work on a large-scale activity at the project site before gaining official clearance by the agency and requested from the company a written assurance that such blatant violations would not be repeated.

In February, Hindustan Electricity Generation Co. Pvt. Ltd. filed a writ petition at the High Court against the SEIAA’s demand on the grounds that it already possessed clearance before work began and had committed no offence. The High Court then asked the company’s representatives to provide a letter claiming that it had not committed any violation and directed the SEIAA to give the clearance certificate to the company.

A petition was filed by Sultan Singh on behalf of the sangh, also referred to a central government notification under the Environment (Protection) Act which states environmental authorities are only entitled to give clearance to Power Projects under 500 MW. For projects above 500 MW, such as the 2,500 MW project currently being built, the company would need clearance directly from the central environmental ministry. This would prevent any work from being undertaken at the project site without securing an environmental clearance from the relevant authority.

The Sangh in its petition said that "The error on the part of the high court and the faulty clearance granted thereon by the SEIAA becomes more palpable in light of the fact that various social and environmental concerns of the petitioner and other residents of the affected villages as well as various procedural and legal objections in the processing of the company's request were given a go by by the authority while adjudicating the same.”

Hiranandani can’t construct on plot before making affordable homes - DNA, Pg 1, Mumbai

In a major setback to Hiranandani developers, the Bombay high court (HC) restrained them from carrying out any further development at their Powai township before constructing affordable homes as contemplated under the tripartite agreement between the developer, state government and the MMRDA.

The court observed that they were issuing directives for corrective steps instead of punitive action against the developer and government officials. The HC, however granted liberty to petitioners “to take up the issue of corruption in a criminal prosecution against any errant public officers and the developer.”

A division bench of chief justice Mohit Shah and justice Roshan Dalvi directed the petitioners, Hiranandani developers and MMRDA metropolitan commissioner, to prepare a statement of buildings and structures put up by Hiranandani in Powai Area Development Scheme (ADS) along with the names, description and number of area and units/flats therein within four weeks.

HC Jolt For Hiranandani In Powai

State must take over Hiranandani land

Source: http://articles.timesofindia.indiatimes.com/2011-12-23/mumbai/30550594_1_hiranandani-land-owners-low-cost-housing-project

Petitioners, led by activist Medha Patkar, have urged the HC to order the state to take over Hiranandani's land in Powai, even as the developer has offered to submit a bank guarantee of Rs 27 crore. A division bench of Chief Justice Mohit Shah and Justice Roshan Dalvi reserved its judgment on PILs filed by the activists accusing Hrianandani of turning its Powai land (meant for a low-cost housing project) into an upmarket housing scheme.

"The state should take over the Hiranandani land," said advocate Ashish Mehta, counsel for Patkar. "The houses under construction should be acquired by the state. The remaining land should be handed over to Mhada to construct low-cost houses."

Mehta pointed out statistics furnished by the BMC that the total permissible construction rights in the form of floor space index was over 5.24 lakh sq m, including the setback land and development plan road. "As per the agreement, 15% of this space (78,600 sq m) should have been given to the government," said the advocate.According to Mehta, so far Hiranandani has only built 234 flats or around 5,500 sq m and offered to hand over another 26,000 sq m. "This is nowhere close to what is due to the state. Hiranandani has denied flouting rules and has pointed to the arbitrator appointed to look into the tripartite agreement between the land owners, government and MMRDA which has found no irregularities. They said the original agreement was signed in 1986 and the petitioners have approached the court after over 20 years. Earlier, Hiranandani had offered to build 225 flats admeasuring 40 sq m each and 225 flats of 80 sq m each.

Hiranandani Group Ordered To Halt Development on Government Land