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Mumbai: Abhyudaya Nagar realty push now back on track

Societies give developer time till end-July to meet ‘certain commitments’

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MAKING HEADWAY: The whole project wasn’t moving ahead because of the stamp duty the developer has to pay
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One of Mumbai's biggest redevelopment project — spread over 33 acres in the heart of Central Mumbai — is back on track. The redevelopment was derailed in May after the federation, comprising of 48 societies and 3,410 residents, decided to terminate the developer. However, it recently gave the developer time till end-July to meet certain commitments and proceed with the redevelopment. The project is Abhyudaya Nagar, and the builder is Keystone Realtors (Rustomjee).

The societies, located in Kalachowki area of central Mumbai, is amongst one of the oldest habitats of the city. The area was once surrounded with mills, which slowly made way for skyscrapers. The societies' Special General Body meeting, in May, had decided to call off the tender for redevelopment awarded to Keystone Realtors (Rustomjee), citing delay in the works related to redevelopment. The developer had then claimed that he had sought a meeting with the federation.

Nandkumar Katkar, chairman of Abhyudhaya Nagar Cooperative housing societies' federation, confirmed the development. Katkar said, "We recently held a meeting where the developer showed his willingness to continue with the project and follow the due process. Take into consideration the commitment expressed by him, we've given him time till July end."

According to Katkar, in July 2017, the federation had conducted elections to select a developer and Keystone was selected. Then, in April 2018, a special general body meeting was called, which asked the developer to pay the stamp duty within six months' time. However, the developer, in September, sought further extension of six months, which was granted. Even then, in March 2019, after seeing things weren't moving in the right direction, the members sought to cancel the award of the tender to the developer. All this happened in May. Now in a special meeting, the developer was granted more time.

The whole project wasn't moving ahead because of the stamp duty the developer has to pay. M/s. Solicis Lex & Associates has been recently appointed as the Solicitors of the Federation. Solicitor Devang Mehta, Dy. Managing Partner, M/s. Solicis Lex & Associates said, "The developer has procured the final adjudication order dated May 24, 2019, from the Collector of Stamps whereby the stamp duty is reduced to Rs 68.63 crore from the original Rs 149 crore under the interim order. As per the final adjudication order, the developer has been given 60 days' time to pay the stamp duty. Due to this new development, the Federation, during its general body meeting, has granted additional time to the developer to take further steps."

Keystone Realtors Pvt. Ltd's representative, in a statement, said, "We have gone through the order passed by the Collector of Stamps. However, we have a reservation concerning the manner in which the stamp duty has been computed and are presently in the process of taking appropriate legal action to challenge the same."

THE SETTLEMENT

  • The societies, located in Kalachowki area of central Mumbai, is amongst one of the oldest habitats of the city
  • The redevelopment was derailed in May after the federation, comprising of 48 societies and 3,410 residents, decided to terminate the developer
  • However, it recently gave the developer time till end-July to meet certain commitments and proceed with the redevelopment
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