E-Paper
Why these Chembur home buyers have nowhere to go
the home buyers hadn’t realised the perils of investing in a saleable component of an SRA project. After Radius began facing financial issues, the transit rent to slum dwellers who had already vacated their homes was stopped, leading to a big turmoil. In September 2021, the then SRA CEO initiated suo moto proceedings, and terminated the developer for “non performance and inordinate delay in implementation”.
Mumbai: When middle-class buyers of Radius Anantya project in Chembur booked their flats in this saleable component of a Slum Rehabilitation Authority (SRA) project adjacent to Rashtriya Chemicals and Fertiliser land in Chembur, they were made to imagine a 40-storeyed eight-tower mini township project set into the hills and plush with amenities.
Radius Developers was a big name with multiple prestigious projects under its belt. It was a RERA registered project, and SRA was also involved.
However, by 2018, the excavation work for the foundation stopped. Radius group started facing legal and financial issues and insolvency proceedings were launched against two of the group companies in 2021, and in 2022, a personal insolvency proceeding was started against the promoter Sanjay Chhabria, who continues to be in jail in connection with a CBI case against Dewan Housing Finance Corporation.
But the home buyers hadn’t realised the perils of investing in a saleable component of an SRA project.
After Radius began facing financial issues, the transit rent to slum dwellers who had already vacated their homes was stopped, leading to a big turmoil. Out of the five rehab towers of G + 22 floors, only two were complete. The general body of three societies Om Ganesh Nagar SRA CHS, Ekta SRA CHS and Jai Hanuman Nagar SRA CHS passed a resolution demanding the termination of Radius developer.
In September 2021, the then SRA CEO initiated suo moto proceedings, and terminated the developer for “non performance and inordinate delay in implementation”.
In May 2022, SRA appointed valuer submitted a valuation report assessing that Radius Developers had spent ₹56 crore excluding transit rents, MCGM premiums etc., on this project. In January 2023, the three slum societies invited fresh proposals from developer and selected Chandak Realtors Ltd as the new developer with 90% eligible slum dwellers voting for the developer.
With the appointment of a new developer, the Radius Anantya buyers approached the SRA authorities only to be told that they are only responsible for the slum component, and the saleable component falls in the domain of MahaRERA.
“We also met Chandak developers who told us that they have no privity of contract with us, and they have to first complete the rehab portion before planning the saleable,” said Chandrashekhar Rao, one of the home buyers coordinating with around 80 home buyers sailing in the same boat. The information on MahaRERA portal indicates that more than 450 flats have been booked in Anantya project.
When contacted, Satish Lokhande, SRA chief, said, “The SRA is responsible for the slum rehabilitation, but Radius saleable buyers is the liability of the new developer. It goes without saying and they should honour it. For any issues with it, buyers should approach MahaRERA.”
When contacted, Chandak Developers refused to comment on the issue.
When some of these buyers approached MahaRERA with individual complaints, the Authority rejected their complaints as premature as Radius Anantya possession date has been unilaterally extended till 2025.
