Mumbai: In a major relief for Hiranandani Developers, the Bombay High Court allowed it to “proceed with the development of Powai Area Development Scheme (PADS) without any embargo/restrictions including regarding size of tenements”.
Effectively, Hiranandani can go ahead with the construction of its private projects in the Powai area.
A division bench of Justices SV Gangapurwala and Sandeep Marne, on Wednesday, vacated the restriction noting, “In view of compliance of all the obligations imposed on the developers/applicants by interim orders… all restraints imposed are vacated and the developer/applicants shall be at liberty to proceed with the development of PADS land without any embargo/restrictions including regarding size of tenements or joint use of the tenements, amalgamation or construction of tenements for commercial use.”
The High Court had imposed restrictions on Hiranandani in 2008 while hearing public interest litigations (PIL) filed by Kamlakar Satve and Rajendra Thacker alleging that the developer violated a 1986 agreement for developing 230 acres of land under the PADS. The PILs have sought that an inquiry be initiated to probe the November 19, 1986, tripartite agreement executed between the Maharashtra government, Mumbai Metropolitan Region Development Authority (MMRDA) and the developers. The PIL alleged that the disputed flats were built on a plot, which was originally allotted to the builders for the construction of affordable housing for the middle-income group, but the same were sold to the rich people.
Further, on February 22, 2012, the HC directed Hiranandani to first construct 1,511 flats of 80 sqm and 1,593 flats to 40 sqm without amalgamating any flats before undertaking any other construction work in the Powai township.
In 2022, the developers filed an affidavit stating that they have completed construction of 1,511 flats of 80 sqm and 1,593 units of 40 sqm and had further handed over 128 flats of 40 sqm and 128 flats of 80 sqm to the State Government on 7 May 2022.
The court took note of the fact that the flats, having an aggregate area of 17146.05 sqm, have been handed over to MMRDA which has issued a possession receipt dated May 7, 2022.
However, the court noted that there has been some delay in the completion of the construction of the buildings. The first set of buildings was to be constructed by December 2017 but have been constructed by March 2018, whereas, the second set of buildings which was to be constructed by June 2018 was constructed by February 2019.
Pending the final hearing in the PILs, the HC had directed that the amount received from the sale of flats be deposited in a separate bank account held jointly in the name of the developer and the Prothonotary and Senior Master of the HC. The HC has allowed the developer to withdraw the amount Rs112.35 cores (approx.) lying in the joint account.
According to the petitions, PADS was aimed at providing affordable housing to persons in the middle-income group. The agreement provided that 50% of the flats constructed by Hiranandani had to be less than 40 sq m (430 sq ft) in the area and the rest could not exceed 80 square metre (861 sq ft). In 1989, Hiranandani was provided with an exemption allowing it to merge flats but the amalgamated flats could not exceed 15 % of the total development.
