According to home buyers, MHADA has orally communicated to them that the nine companies involved in the redevelopment owe the housing authority over Rs 3,000 crore.
Maharashtra Housing and Area Development Authority (MHADA) officials will meet an expert technical committee on September 26 to discuss and finalise the liabilities of the developers involved in the Patra Chawl redevelopment process, MHADA officials informed a delegation of 1,700 home buyers during a meeting on September 14.
According to home buyers, MHADA has orally communicated to them that the developers involved in the redevelopment process owe MHADA over Rs 3,000 crore.
The buyers further allege that MHADA is not giving permission to the developers to hand over possession to the home buyers by way of occupation certificates (OCs). MHADA wants the three real estate firms involved in the project to clear the liabilities of a previous developer, they said.
Recently, Shiv Sena leader Sanjay Raut was arrested for his alleged involvement in the misappropriation of funds from the project.
On September 14, dozens of home buyers staged a peaceful protest outside the headquarters of MHADA in the Bandra area of Mumbai. A delegation of home buyers also met Yogesh Mhase, Chief Officer of MHADA’s Mumbai Division to discuss the issue.
In a statement, the delegation of home buyers from projects such as Kalpataru Radiance, Ekta Tripolis and The Luxor by Sangam Lifespaces said, “Over 1,700 home buyers who have paid more than Rs 3,000 crore collectively to the builders, Rs 500 crore towards GST and Rs 200 crore towards stamp duty are being deprived of possession since seven years.”
“MHADA is aware and expressed concern about the 1,700 flat buyers’ delayed possession. MHADA assured that the whole liability fixation is on ‘No profit No loss’ basis,” the delegation said in its statement.
“MHADA is scheduled to have a crucial meeting with the Expert Technical Committee on 26th Sept, 2022, post which they expect to submit a report to the Bombay High Court. All builders will be informed about their liability after the payment by each builder and the NOC can be released in eight days. MHADA did not share a clear plan of action should the liability fixation process remains inconclusive. The MHADA did not share any clear timelines for possession,” the statement read.
Four months ago, the Maharashtra government set up a committee of independent members and officials of MHADA to tackle the issues related to the redevelopment of Patra Chawl.
Repeated attempts to reach MHADA officials for an official comment did not yield any response.
Patra Chawl issue: The background
Patra Chawl, in the Siddarth Nagar area of Goregaon, a western suburb of Mumbai, went for redevelopment in 2008. It had over 670 tenants, and the housing units were spread across 47 acres.
It was originally a barrack constructed by the British during the Second World War and was used as a military camp.
In 2008, MHADA took up the redevelopment project and appointed Guru Ashish Construction Private Limited (GACPL), a sister concern of real estate company Housing Development and Infrastructure Ltd (HDIL), to rehabilitate over 670 tenants and redevelop the locality.
A tripartite agreement was signed between GACPL, the tenants’ society and MHADA. Following this, the tenants moved out from the chawl by 2010 but 14 years down the line, they are yet to get their promised homes.
Additionally, as per the free sale component of the agreement, developers sold apartments to about 1,700 families. The real estate firms who have been involved in this for over 10 years and built these projects are unable to hand over possession.
The home buyers allege that it is because of administrative delays and a dispute between the developers and MHADA over pending liabilities of around Rs 3,100 crore. For the 670 original tenants, MHADA is constructing homes and their possession is expected in the next two years.
