Maradu demolition: Flat owners welcome SC order on compensation, builders worried

Maradu Home Protection Samithi, an organisation of 350-odd flat owners, welcomed the order. Its chairman Advocate Shamsudeen Karunagappally said, “We are ready to take compensation, but it should be on a par with the current market price of our flats. Also, there should be an undertaking from the government that it would guarantee that the builders pay the entire cost of our flats in a time-bound manner.’’

He said the government should restore supply of water and power, which have been snapped in a bid to flush out the residents. “Let the supplies be reinstated. We should be satisfied with alternative arrangements the government is making for us. We will not let authorities dump us somewhere. Till we are convinced about the alternative arrangements, we will not move out,” he said.

The Samithi said that since the rehabilitation exercise would cost the state government heavily, all political parties should think about bringing in a legislation to stall the demolition.
There are 343 units in the four apartment complexes which face demolition.

If the compensation is provided on market rates, it would cost Rs 300 to Rs 350 crore, according to industry sources.

One of the builders said, “We have been victimised for faults of government officials and the coastal management authority. The court hasn’t heard us. The controversy has affected not only our business but also the real estate sector. The directive to pay compensation would wipe us out.”

The police have registered cases against three builders and frozen their accounts following complaints from residents. Sources said even resale of flats in other apartments constructed by the four builders is now difficult. “We have to pay our staff. If we can’t operate bank accounts, how will we run the business,’’ a builder said.

Of the builders, three are based in Kochi and one in Chennai.

Jain Constructions and Housing, based in Chennai, built Jain Coral Cove. The firm has been in the construction sector since 1987 and has built 180-odd residential projects in South India. Ashok Mehta is its chairman.

Holy Faith Builders And Developers Private Limited in Kochi began operations in 2005. Its Holy Faith H2O is identified for demolition. Managing Director Sany Francis has stakes in companies in plantations, tourism and finance sectors. Kochi-based Alfa Ventures built the Alfa Serene.

The firm has stakes in apartments and commercial projects mainly in Kochi and is headed by Paul Raj.

K P Varkey and V S Builders are builders of Golden Kayaloram. Founded in 2003, the group has nine apartment and commercial projects in Kerala. It has sister concerns in gold, hotel, timber and transport sectors. K V Jose is managing director of the firm.