No building on open Powai space, SC tells Hiranandani
Apex court upholds High Court’s January order, barring the developer from constructing buildings on an open plot which residents call the ‘open space’ of their eight societies.
In a major blow to Hiranandani Developers the Supreme Court has dismissed a Special Leave Petition filed by one of the group companies, seeking to construct buildings in a particular sector at Powai, on a plot which the residents call their “societies’ open space”.
A division bench of Chief Justice of India H L Dattu and Justice Arun Mishra, while dismissing the case, requested Bombay High Court to try and finish hearing the case completely in a year’s time, and directed all parties to cooperate with the concerned bench of HC to meet this deadline.
The issue pertains to a suit filed by eight societies in Sector IV-A of Hiranandani Complex in Powai, against “new construction in the open space” of their sector. The eight societies had been constructed between 1995 and 2007.
According to the suit filed through law firm Hariani & Co, the societies contended that the concerned space was earmarked for a common clubhouse and recreational ground for their societies, as disclosed to them in the layout in 2004, and that plans cannot be altered by the developer without their consent. The suit also seeks directions to the developer to issue conveyance of the land in favour of the eight societies.
Furthermore, the societies contended that the designated open space was covered under the Maharashtra Ownership of Flats Act, which meant that it belonged to the societies and that the developer could not make any alterations without the societies' permission.
The societies have alleged that the developer was trying to encroach upon the open space allotted to them in the guise of fulfilling a 2012 HC order. It alleged that the Hiranandanis have ample open space in the area, but are seeking to leave those open spaces for their “free sale” component, instead of constructing the “low-cost housing” component over there.
Lakeview Developers, however, contended that it had altered the development plan 13 times between 1990 and 2011, but none of the residents/societies had opposed it even once. The developers also contended that they have the right to alter plans for the area till the entire land taken by the government in 1986 was “fully developed” and the lease terms were fulfilled.
HC, however, had observed that the developer could not go on constructing buildings “till eternity” in the name of completing its plan for the entire area.
In SC, the Hiranandanis in a way put the blame on the societies saying, “The petitioner submits that the tripartite agreement contemplated development of small tenements and it was that obligation which founded the basis for MMRDA agreeing to allow the developer to construct luxurious flats which belong to members of these (eight) societies, some of which extend up to 4,000 sq ft.” The SLP also calls these societies “direct beneficiaries of the lapse”.
The Supreme Court, however, refused to entertain the petition.
Project background
In 1986, the Hiranandani Group had signed a lease for developing 230 acres of land in a tripartite agreement with the State and MMRDA, at a paltry rate of 40 paise per acre to build affordable houses.
HC, while hearing three PILs, had ruled that criminal cases can be filed against the developer and errant government officers. As per the agreement, Hiranandani was to construct 50 per cent of the flats measuring 430 sq ft, and the remaining of 861 sq ft. Instead, as per the PILs, flats were allowed to be merged to as large as 4,000-5,000 sq ft and sold at prices touching up to Rs 7 crore.
By an order passed on February 22, 2012, a division bench headed by the then Chief Justice of Bombay HC, had restrained Hiranandani from starting any construction on the remaining area without its permission.
In a major blow to Hiranandani Developers the Supreme Court has dismissed a Special Leave Petition filed by one of the group companies, seeking to construct buildings in a particular sector at Powai, on a plot which the residents call their “societies’ open space”.
A division bench of Chief Justice of India H L Dattu and Justice Arun Mishra, while dismissing the case, requested Bombay High Court to try and finish hearing the case completely in a year’s time, and directed all parties to cooperate with the concerned bench of HC to meet this deadline.
Lakeview Developers — one of the concerns managed by Niranjan Hiranandani and his family — had approached the apex court against a Bombay HC order asking them to stop ongoing construction work, if any; not to utilise FSI of the open plots concerned; and not to create any third party rights in the proposed construction work. Mumbai Mirror had, on January 23, 2015, reported the High Court order.
The issue pertains to a suit filed by eight societies in Sector IV-A of Hiranandani Complex in Powai, against “new construction in the open space” of their sector. The eight societies had been constructed between 1995 and 2007.
According to the suit filed through law firm Hariani & Co, the societies contended that the concerned space was earmarked for a common clubhouse and recreational ground for their societies, as disclosed to them in the layout in 2004, and that plans cannot be altered by the developer without their consent. The suit also seeks directions to the developer to issue conveyance of the land in favour of the eight societies.
Furthermore, the societies contended that the designated open space was covered under the Maharashtra Ownership of Flats Act, which meant that it belonged to the societies and that the developer could not make any alterations without the societies' permission.
The societies have alleged that the developer was trying to encroach upon the open space allotted to them in the guise of fulfilling a 2012 HC order. It alleged that the Hiranandanis have ample open space in the area, but are seeking to leave those open spaces for their “free sale” component, instead of constructing the “low-cost housing” component over there.
Lakeview Developers, however, contended that it had altered the development plan 13 times between 1990 and 2011, but none of the residents/societies had opposed it even once. The developers also contended that they have the right to alter plans for the area till the entire land taken by the government in 1986 was “fully developed” and the lease terms were fulfilled.
HC, however, had observed that the developer could not go on constructing buildings “till eternity” in the name of completing its plan for the entire area.
In SC, the Hiranandanis in a way put the blame on the societies saying, “The petitioner submits that the tripartite agreement contemplated development of small tenements and it was that obligation which founded the basis for MMRDA agreeing to allow the developer to construct luxurious flats which belong to members of these (eight) societies, some of which extend up to 4,000 sq ft.” The SLP also calls these societies “direct beneficiaries of the lapse”.
The Supreme Court, however, refused to entertain the petition.
Project background
In 1986, the Hiranandani Group had signed a lease for developing 230 acres of land in a tripartite agreement with the State and MMRDA, at a paltry rate of 40 paise per acre to build affordable houses.
HC, while hearing three PILs, had ruled that criminal cases can be filed against the developer and errant government officers. As per the agreement, Hiranandani was to construct 50 per cent of the flats measuring 430 sq ft, and the remaining of 861 sq ft. Instead, as per the PILs, flats were allowed to be merged to as large as 4,000-5,000 sq ft and sold at prices touching up to Rs 7 crore.
By an order passed on February 22, 2012, a division bench headed by the then Chief Justice of Bombay HC, had restrained Hiranandani from starting any construction on the remaining area without its permission.
