Wednesday 13 June 2012

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While declaring the special leave petitions as "disposed of as withdrawn", the bench declines to disturb the high court order which had said that the development in 'Pawai Area Development Scheme' on 230 acres of land was meant for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.

Wednesday 6 June 2012

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.