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In a notable legal development, the Bombay High Court has issued a directive to the Maharashtra Housing and Area Development Authority (MHADA) to forgo the requirement of obtaining a No Objection Certificate (NOC) from any prior developer or architect for a seven-story building in Kherwadi Bandra (East) that had collapsed 25 years ago. The Court has instructed MHADA to determine a new developer and present a proposal for the reconstruction of the building.
This decision comes after a protracted legal battle initiated in 2001, following the tragic collapse of the "Govinda Tower" in 1998, claiming 33 lives. Justices Gautam Patel and Kamal Khata expressed their dismay over the extended delay in addressing the matter. The judges granted an interim plea within an ongoing petition by certain residents who sought to remove the developer's name, A A Estates Pvt Ltd, an RNA Corp Group company, from the reconstruction process, citing inactivity since 2012. The judges noted that MHADA had leased the plot for reconstruction purposes.
Originally, developer Jairam Chawla of Apex Gas Services and hotelier Dilip Datwani had undertaken the task of reconstructing the building. They later brought in AA Estates, which has faced numerous difficulties and is currently undergoing insolvency proceedings before the National Company Law Tribunal (NCLT), with an interim resolution professional (IRP) appointed. Notably, there was no registered agreement with AA Estates.
The petitioners implored the High Court to allow them to select a developer of their choice to oversee the reconstruction. In response, the judges emphasized the importance of the society itself making the developer selection.
An August 14 resolution by the Kherwadi Rajhans Cooperative Housing Society Limited, comprising 18 members, recommended the appointment of Rosate Estate Pvt Ltd/Roxwell Maxam Construction Ltd as the developer. The judges directed the society to be joined as a respondent, allowing them and the selected developer to negotiate terms and conditions. Additionally, it was clarified that neither the IRP nor AA Estates, nor any other party, could object to this arrangement, provided that the society and the new developer comply with all MHADA requirements, rules, regulations, payments, and address any property tax issues.
The High Court will reconvene on October 3 to address other petitions seeking an investigation into the building's collapse, assignment of liability, and compensation. The judges expressed regret that the case had to be kept pending for this purpose, emphasizing their reluctance to compel petitioners to resort to a civil suit, with its inherent complications, after such a protracted period. This ruling marks a significant step towards resolving the long-standing issues surrounding the collapsed building and advancing its reconstruction efforts.
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