HC issues warrant against builder who failed to complete two projects
A bailable warrant has been issued against a builder in Mumbai who has failed to complete two projects, a redevelopment project and a slum scheme.
MUMBAI: A bailable warrant has been issued against a builder who has failed to complete two projects — a composite redevelopment project in Ghatkopar and a slum scheme in Kurla.
The Bombay high court division bench of justice GS Patel and justice Neela Gokhale on Tuesday issued warrant against Niraj Ved, proprietor of Sainath Corporation, to be arrested.
The bench was informed that the Ghatkopar-based builder had discharged lawyers appearing for him in three petitions filed against him.
Two of the petitions are filed by those to whom Sainath Corporation had sold flats but did not deliver their possession.
The third plea was filed by the members of Kapilkunj Co-operative Housing Society in Ghatkopar, whose redevelopment was undertaken by Ved but failed to complete the project. The members of the society eventually invested money and completed the work.
The judges said they were irked to note that the builder had sought to club the two projects. He had tried to convert the Ghatkopar redevelopment project into a permanent transit camp for the slum dwellers from Kurla and the slum rehabilitation authority (SRA) officials were unaware of the plans.
“This is a classic case of a developer playing fast and loose with development rights at the cost of those entitled to reconstructed homes or rehabilitation, third party purchasers, permanent transit camp units and worse,” said the judges about the conduct of the builder.
“Over the last few days, we have also expressed our great dismay and distress at the complete lack of supervision of the developer and his on-site activities by the SRA, the special planning authority, and particularly its CEO,” added the bench.
The court noted that the builder had not paid around ₹80 lakh of transit rent to the individuals to be rehabilitated. The bench observed that the developer will not get to exercise any rights over the premises once it is shown that he had not fully met his obligations under the letter of intent in respect of the rehab units.
“It was and it is the obligation of the developer to complete the entire construction and to pay transit rent. This was the consideration for being able to exercise rights in respect of the free sale units,” said the court,
“If the developer did not fulfil those obligations there is, quite simply put, in contract law a failure of consideration and the developer can claim no rights over the free sale units,” added the court.
The matters are now posted for further hearing on August 9.