41 yrs on, HC refuses to stall redevpt of graft-hit Pratibha
MUMBAI, Oct. 25 -- The Bombay High Court has refused to stall the redevelopment of the controversial Pratibha Tower in the upscale Breach Candy area of south Mumbai. It has allowed the housing society, now known as Saidale Cooperative Housing Society, to proceed with redevelopment as approved by its general body on June 14.
Pratibha Tower, a 36-storey building whose construction began in 1984, was demolished due to a major real estate scandal involving allegations of irregularities in floor space index (FSI) consumption. Investigations had revealed that the builder had allegedly overstated the plot area, resulting in an unauthorised increase in permissible FSI. This was one of the first major corruption-related scandals in Mumbai's real estate industry.
Among the original buyers were several high net worth individuals, including singers Lata Mangeshkar and Asha Bhosale, as well as non-resident Indians and private firms, highlighting the project's prominence at the time.
After several rounds of litigation, the Brihanmumbai Municipal Corporation (BMC) ordered the demolition of the top eight floors in 1989. Thirty years later, in April 2019, the society decided to redevelop the property, following which the remaining structure was pulled down. In March 2022, by a majority vote, the society appointed Crest Residency Pvt Ltd, a joint venture between RA Enterprises and Crest Venture Pvt Ltd, as the developer.
However, society member Devyani Gulabsi filed a suit in June this year contesting the redevelopment of the property. She questioned the 2022 appointment of Crest Residency and sought an injunction to restrain construction.
Gulabsi alleged that the developer had "parachuted" into the project and that society members were not offered fair area entitlements. She contended that the additional 69,604.65 sq ft of built-up area obtained by the developer should go to members.
Justice Sandeep Marne, however, rejected the plea for an interim injunction, observing that granting it "would virtually mean stalling the construction" of the building. The court said that the decision to develop the property and appoint the developer was approved by a majority, and minority members cannot stall its implementation.
The single-judge bench further clarified that the case did not involve any elements of fraud, misrepresentation, or statutory violations in the decision-making process. Therefore, the plaintiff could not, either alone or along with other dissenting members, prevent the majority's decision from being carried out.
With regard to Crest Ventures, the court said Gulabsi and other minority members knew that it was part of the joint venture appointed by the society. It also noted that the developer had agreed to provide an additional 150 sqft carpet area to each society member, increasing their entitlement from 3,450 sqft to 3,600 sqft. This addressed the plaintiff's concerns regarding additional area allocation, it said.
As for Gulabsi's claim for damages amounting to Rs.100 crore, the court said the issue would be decided at the time of final adjudication of the suit. "Construction work of the building need not be stalled till plaintiff's prayer for damages is adjudicated. The members of the society have been waiting for flats for the last four decades, and it would not be prudent to delay the project any further," the court added....
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