Boost for dissenters, blow to developers in Mimbai

Swati Deshpande & Nauzer Bharucha,
 11 December 2009, 06:34am IST

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The Bombay high court has in one stroke decided
the fate of over half a dozen pending cases
concerning redevelopment of various cooperative
society buildings in the city.

The ruling last Saturday not only dismissed the application
of a builder against some members of Fardoon Cooperative
Housing Society, Khar, but also effectively protected interests
of dissenters elsewhere. Justice S C Dharmadhikari made it clear
the verdict would be a precedent for similar cases pending before
 the single bench.

One case that stands effectively dismissed is that of Pantnagar
 Railway Cooperative Housing Society in the suburbs, where Jaideep
Construction had a redevelopment agreement with a majority of the
 society members. Of 33 members, 28 had passed the resolution,
vacated the premises and shifted to rented premises. Of the
remaining five, two were not members and two were subsequent
transferees yet to be admitted to the society's membership,
 while one was operating a restaurant whose licence had been
cancelled.

Vineet Naik, advocate for the builder said, "We will study the
judgment but it will most likely be carried in appeal.

It affects various redevelopment projects in the city where
a few members without bona fide reasons may hold construction
to ransom. In our case, though documents showed they were
residential occupants, they wanted commercial premises.''

Sapnil Kothari, a corporate lawyer associated with over six
redevelopment projects at various stages, says,
"The interests of all members of the society may never
coincide and the entire redevelopment process, aimed at
improving the Mumbai skyline and create more housing would
 be held to ransom.''

The ruling may also set off a fresh wave of litigation.
A flat owner in Goregaon (West) is already contemplating
a petition to protect himself against the builder who
he says is trying to cheat him of his lawful area in
the new redeveloped building.

Meanwhile, the Sahara Cooperative Housing Society case
in which Justice A M Khanwilkar had paved the way for
easy redevelopment in 2007, when he ruled that dissenting
minority members could be evicted forcibly so they do not
hold development work to ransom, is expected to come up for
 fresh hearing on Friday. The 12-flat building in Khar (W)
continues to be occupied to date, with only the society
secretary and chairman shifting out.

Another case in point is Jeevan Deep building, built
in 1958, in Khar (West). Dubai-based Jairam Masand who
owns a flat in it last month rushed to the Supreme Court
after not getting any relief from the high court, and the
SC directed the authorities and the developer, Whiz Enterprise,
to maintain status quo. But by the time the order came,
demolition had already started. "I am not against redevelopment.
 In fact, I was happy that everyone would get a new flat.

 It is the manner in which decisions to appoint the developer
were taken that I opposed,'' Masand said.

Masand and another member are the only dissenting voices in
the society of 12 members. "I am fighting for my rights.
It's not about the money. I have already spent Rs 15 lakh
fighting this case in court,'' he said.

Amrit Rajani, director of Whiz Enterprises, said Masand
was stalling the project and leaving other residents in the
 lurch. "The BMC had issued several notices to the society
to demolish the building as it was dilapidated. However,
demolition was stopped after the Supreme Court ordered status quo,''
he said. Rajani added the society has filed a case in the apex court
against Masand for not cooperating. "It is a simple case of arm-twisting.
 As developers, we have already invested Rs 11.3 crore in the project and
are paying Rs 11 lakh a month for rent for members who have
 already moved out,'' he said.

Source:Mumbai Toi