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 The State has old land and revenue records based on the outdated British system.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.