Take steps to stop developers from repeating it: Bombay HC to MHADA

High Court asks state govt to file affidavit in the matter; hearing on Wednesday

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The petition further alleged that MHADA was facing a loss of Rs 14,000 crore, due to “deliberate inaction” by its officials (File)

The Bombay High Court Friday said that the Maharashtra Housing and Area Development Authority (MHADA) should be ‘worried’ that developers redeveloping cess buildings were not handing over a part of the building back to the authority, as per the agreement. The court added that if such practice was not curtailed, it would be repeated by the developers. The court has asked the authority to take steps and come up with a procedure to prevent such cases in the future.

The court was hearing a criminal public interest litigation, filed by Kamlakar Shenoy, which alleged that developers redeveloping cess building under the development control rules were bound to surrender part of the redeveloped property, in set percentage to MHADA before obtaining Occupation Certificate from the Brihanmumbai Municipal Corporation. However, the developers were not handing over the required portion back to the authority all across Mumbai, especially in south Mumbai, the petition stated. The petition further alleged that MHADA was facing a loss of Rs 14,000 crore, due to “deliberate inaction” by its officials.

Meanwhile, the Economic Offences Wing, on Friday, filed an affidavit in the matter, stating that five FIRs had been filed against developers in such cases in 2017. It further said the allegations in the petition were “vague and exaggerated”. Referring to communications between EOW and MHADA, the affidavit stated that there were a total of 457 projects approved under the DCR rules, under which MHADA was supposed to get an area of 1,98,646.45 sqm from developers. Out of these, 149 projects have been completed, the affidavit stated.

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“Further substantial portion of total promised area of 1,41,803.29 sqm is from 260 projects, which are either ongoing or stalled due to some exigencies…” the affidavit stated. Meanwhile, developers of remaining 48 projects have defaulted over 14,021.99 sqm of area. The authority has issued notices in 29 cases and recovered 6,376.12 sqm. “This prima facie shows that MHADA has also imitated civil proceedings against errant developers,” said the affidavit.

After going through the affidavit, the court asked MHADA to file an affidavit, specifying the number of projects that have been completed and also the ones that remain to be completed. “What steps will MHADA take in such cases in the future… MHADA should be worried it it not getting its share. If such practice is not curtailed, then it will be repeated. Some procedure will have to be worked out,” said Justice Naresh Patil while hearing the matter on Friday.

He added that only when a building “is constructed and a third party interest is created, that the authority realises it has not been given its share”. “You have independent power… Ask the Ministry of Housing also what can be done in such cases,”added Patil, pointing to the huge revenue losses to MHADA. The court has also asked the state government to file an affidavit in the matter and has kept the matter for hearing on Wednesday.

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