Sale of properties in Royal Palms challenged - Hiranandani Construction

Activist Rajendra Thacker moved the High Court earlier this week demanding that developer Niranjan Hiranandani be restrained from selling properties in his project — Royal Palms Scheme near Powai — that is involved in a legal dispute.

Thacker questioned how the developer could obtain permission from the BMC for constructing 14 IT buildings and 70 residential buildings, including 50 bungalows, in spite of no commercial development was permitted in the scheme of slum rehabilitation.

He claims that the builder took advantage of the fact that the case pertaining to the scheme is pending and there is no order pertaining to it. Thacker approached the court after an advertisement was published in a newspaper for sale of 6,000 sq m of land, which is part of the scheme.

Medha-led NAPM files caveat in SC on Hiranandani Group’s Powai project

The National Alliance for People’s Movements (NAPM) has filed a caveat in the Supreme Court seeking that the NAPM be given a hearing in the matter of Hiranandani Gardens, before the court gives its decision, said NAPM convenor Medha Patkar on Friday.

Patkar was reacting to reports that the group is exploring the option of appealing against the Bombay High Court order of stopping the developer from constructing any further in its Powai project. 

“While the Urban Land Ceiling Act required the developer to hand over land in excess of 500 sq m to the government, the project was granted exemption under the condition that the developer would construct smaller houses for the poor. But the project has only palatial homes of 2,000 sq ft and above,” said Patkar.

She added that the 230 acres were acquired by the MMRDA from local villagers at Powai and Tirandaz. It was later handed over to the group at 40 paisa per acre, on condition that they would construct affordable housing. 

“We have filed a caveat saying that unless our side is heard, the apex court should not give a decision,” she said. A tripartite agreement for the Powai Area Development Scheme was signed between the developer, MMRDA and state government. 

The High Court has directed Hiranandani to stop further construction unless around 3,100 affordable houses of 430 and 861 square feet are set up. Moreover, as per rules, the state government should be given 450 flats at a rate of Rs 135 per s ft.

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.

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.