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.