In a major setback to Hiranandani developers, the Bombay high court (HC) on Wednesday restrained them from carrying out any further development at their Powai township before constructing affordable homes as contemplated under the tripartite agreement between the developer, state government and the MMRDA.
The court observed that they were issuing directives for corrective steps instead of punitive action against the developer and government officials. The HC, however, granted liberty to the petitioners “to take up the issue of corruption in a criminal prosecution against any errant public officers and the developer”.
A division bench of chief justice Mohit Shah and justice Roshan Dalvi directed the petitioners, Hiranandani developers and MMRDA metropolitan commissioner, to prepare a statement of buildings and structures put up by Hiranandani in Powai Area Development Scheme (ADS) along with the names, description and number of area and units/flats therein within four weeks.
While hearing two public interest litigations (PIL) by Rajendra Thacker and Medha Patkar respectively, the also directed them to prepare a plan of vacant areas of plots under the Powai ADS within four weeks.
“The developer shall not put up 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 which 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 same 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 the state government 15% of the total FSI consumed in plot in form of constructed tenements at Rs135 per square feet.
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