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In a recent development, the Bombay High Court has issued a stern observation last week, asserting that the situation across the city has reached a critical juncture. The court has called for the government's intervention through drastic measures to rein in builders who are failing to fulfil their obligations during redevelopment projects. This call comes in the context of ongoing disputes involving transit rent payments to tenants who had vacated their premises to make way for new accommodations.
The High Court's bench, comprising Justices Gautam Patel and Neela Gokhale, expressed a strong stance on the matter, emphasizing the prioritization of residents' rights over the interests of developers. The court underscored that the rights of genuine and eligible residents should take precedence over the secondary rights of developers seeking profits. The court's stance was made evident in an order issued on August 7, which pertains to a case brought forward by Sushila G Parikh and others against the state government, MHADA (Maharashtra Housing and Area Development Authority), builders, and the BMC (Brihanmumbai Municipal Corporation).
The case revolves around the distressing experiences of numerous individual residents, including senior citizens, who faced significant hardships due to a supposed quick redevelopment of a cessed building. A total of 65 petitioners were involved in the case presented before the High Court.
The original developer, Parekh Constructions, was appointed by Darshana, the owner of one of the properties involved. Later, Nishcon Realty Private Limited joined forces with Parekh Constructions, forming a joint entity known as Parekh Constructions LLP. However, predictable disputes emerged between these entities, as acknowledged by the High Court.
The properties in question include one owned by Darshana and another owned by a trust. The building on Darshana's property was demolished, while the structure on the trust's property still stands.
During the legal proceedings, Nishcon Realty admitted to being in arrears of transit rent dating back to 2020, amounting to over Rs 7 crores. The High Court emphasized that this substantial sum, totalling Rs 11 crores, has remained unpaid for nearly a decade, leading to the displacement of occupants from the Parvati building.
In response, the High Court issued a directive stating that it expects Nishcon Realty to pay the first 50% of the due amount, which stands at Rs 3.5 crores, by August 11, 2023. The court made it clear that it will not tolerate any default and warned that if the payment is not made by the specified date, MHADA would be instructed to cancel the No Objection Certificate (NOC) of the sole developer listed, namely Parekh Constructions.
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