Update status of reservation on over 14-acre land: Law tribunal tells Thane Municipal Corporation

The homebuyers demanded that they be given flats on the basis of allotment letters issued to them as a proposal was submitted for residential buildings.

If the proposed reservation on over 14-acre land in Thane is not removed, they will be deprived of the same, leading to impact on valuation, the homebuyers stated.

In May last year, the NCLT Mumbai bench had admitted a plea by Beacon Trusteeship Ltd, the debenture trustees against Modella Textile Industries Ltd, after the company defaulted on its dues and the account was declared as Non-Performing Asset (NPA) on June 25, 2019.

The homebuyers had claimed they had invested in the project in 2012 and before the Corporate Insolvency Resolution Process (CIRP) was initiated, they were assured that they would get the flats by December, 2024.

However, they said in the resolution plan that they were not provided homes.

The homebuyers added that while the claim was made to Resolution Professional (RP) for homes, they learnt that the TMC had proposed reservation on the said land. However, the homebuyers claimed they had got approval for the residential project from the civic body on the same land itself and had also availed RERA registration, adding that the proposed reservation would impact on valuation.

The homebuyers claimed that they should be given flats instead of money and the proposed reservation by the civic authority would restrict the same.

The TMC, in its affidavit filed through Satish Ugile- Assistant Director of Town Planning claimed that the NCLT would not be a competent forum to raise the issue as the panel is not vested with the power of judicial review over administrative action.

The civic body said that since it is not the planning authority, it is not empowered to remove reservations created on the plot and the state and central governments have the said power.