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.