Builder moves court,seeks Rs 105 cr from Shapoorji Pallonji Co

Leading real estate company Shapoorji Pallonji and Company Limited has courted trouble once again after Crescent Builders,a city-based developer,moved the Bombay High Court against the company seeking damages of Rs 105 crore.

Published: May 21, 2012 12:11 am

Leading real estate company Shapoorji Pallonji and Company Limited (SPCL) has courted trouble once again after Crescent Builders,a city-based developer,moved the Bombay High Court against the company seeking damages of Rs 105 crore.

Crescent Builders had filed a civil suit and contended that SPCL had not completed a redevelopment project in Tardeo within the stipulated time which in turn incurred losses.

Crescent Builders stated that they were appointed as developers for the redevelopment of the Janata Nagar Housing Society in Tardeo. In January 1997,they signed a memorandum of understanding (MoU) with SPCL for carrying out the development of the property on contract basis.

Their suit adds that as per the agreement between the companies,the SPCL would first have to complete the buildings for rehabilitation of the residents of Janata Nagar Housing Society and then avail the free sale component and complete constructions under it within 18 months from the issuance of the commencement certificate (CC).

In 2003,SPCL completed the rehabilitation buildings and handed them over to the Brihanmumbai Municipal Corporation (BMC). The CC was issued by the corporation in January,2006.

“In 2007,Crescent Builders sought additional FSI from the corporation. However,in June 2009,the civic body refused to grant additional FSI on the ground that the saleable building was not constructed within the stipulated period of two years from the grant of CC,” the suit states.

Crescent Builders also stated that as the construction was not completed within the scheduled period,the then additional municipal commissioner directed them to pay 90 per cent of the capital value (above Rs 16 crore) with 15 per cent interest.

The suit further stated,“The corporation held that the request for grant of additional FSI of 0.5 will be considered only after completion of 19 floors and issuance of Part Occupation Certificate.”

In order to obtain the part occupation certificate for the project,Crescent Builders claim they made correspondences to the SPCL between October and November 2009 and asked them to complete the construction of 19 floors. However,since their correspondences were allegedly unheeded,Crescent Builders,in 2011,terminated the MoU of 1997.

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