‘Shameful for SRA’ HC orders probe over developer with meagre amounts selling nearly 500 flats
The HC noted “false affidavit proceedings would be required to be initiated against Pravin Satra” and raised serious doubts about developer's credentials.
Expressing “shock” over the developer with “hardly any amounts” in his bank accounts undertaking several Slum Rehabilitation Authority (SRA) projects including one with 531 commercial and residential premises, the Bombay High Court on Wednesday asked the CEO of SRA to probe the same. The HC said it was “shameful” for SRA and “such professional negligence cannot be accepted.”
A bench of Justices Girish S Kulkarni and Aarti A Sathe was hearing plea by one Vijay Namdev Gujar, argued through senior advocate Prasad Dhakephalkar and advocate Abhinav Bhatkar, alleging default by Darshan Developers in the payment of transit rent to eligible slum dwellers in Kandivali.
The plea also alleged delay in allotment of tenements in developed premises.
On December 23, the HC directed developer to deposit Rs 2.9 crore with SRA in 10 days, asked proprietors Pravin Vikram Satra, Darshan Pravin Satra to file affidavits disclosing movable or immovable properties, details of bank accounts and other projects in and around Mumbai, along with income tax returns of last four years in a sealed envelope.
On December 24, the HC perused the affidavits and said it “shocked court’s conscience” as to how the developer having “hardly any amounts or hardly any financial position in bank accounts” sold 531 units including 1BHK, 2BHK flats and commercial premises and there was no disclosure of the bank accounts in which such proceed of sale have been received.
“Even an employee in the subordinate Government Services would have a better financial standing in the bank accounts,” the HC order records.
Justice Kulkarni-led bench said the developer “appears to have in some manner snatched the projects executed by unknown third parties” and SRA was either “unaware” about the same or was “kept in a dark”.
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The HC said Pravin Satra’s affidavit was “brazenly dishonest” which disclosed that there were “meagre amounts in six bank accounts” and the court said it was “afraid to even presume that he can be called a developer”.
“It seems completely bogus and 100 % case of financial money laundering. Can a person who has meagre amounts be a developer and sell 531 flats? It’s actually shame on SRA. What is this system if it is not in your control? We will not accept any professional negligence like this,” Justice Kulkarni orally remarked.
Therefore, the HC noted “false affidavit proceedings would be required to be initiated against Pravin Satra” and raised serious doubts about developer’s credentials.
The intentions seems to be only to litigate at the cost of poor slum dwellers, for whom the transit rent, as held by us, is a right to shelter, which is an integral part of Article 21 of the Constitution,” the HC noted and sought further appropriate affidavit from developer.
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The HC noted it has an “apprehension” that the developer ” appears to be merely a front, and in fact the persons undertaking the slum redevelopment project ex facie appear to be some third parties”.
It directed the CEO of SRA to examine appointment of the developer in relation to ongoing SRA projects in Mumbai or Thane and sought an inquiry report whether the developer genuinely undertook such projects and who were the “third parties”.
The HC appointed court receiver for the properties in question and also said SRA was free to lodge a criminal complaint as per law if it found fraud played on government authorities by the respondent developer. It also asked CEO of SRA to seek expert opinion to find whether the developer can at all be accepted for any SRA project.
“This would be certainly in the interest of the slum dwellers as also the prospective flat purchasers in any free-sale building which may be constructed by respondent developer,” the HC noted and posted further hearing to January 9.
Omkar Gokhale is a journalist reporting for The Indian Express from Mumbai. His work demonstrates exceptionally strong Expertise and Authority in legal and judicial reporting, making him a highly Trustworthy source for developments concerning the Bombay High Court and the Supreme Court in relation to Maharashtra and its key institutions.
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