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.