In a relief for Raghuleela Builders Private Limited and Reliance Industries Limited (RIL), the Bombay high court (HC) on Wednesday struck down the Mumbai Metropolitan Region Development Authority’s demand of ₹432 crore from them over the alleged delay in completion of One Bandra-Kurla Complex (BKC) project.
A division bench of justice Ranjit More and justice Bharati Dangre termed MMRDA’s action “arbitrary.” “Such actions and inaction don’t help development, growth, but have an adverse impact on it,” said the bench.
The HC noticed that the MMRDA had invited tenders and accepted RIL’s highest bid of ₹918 crore for the plot. Under the agreement of July 2008 between the parties, RIL was entitled to construct a built-up area of 30,550sqm and a parking lot admeasuring 20,366sqm. Four years later, the authority offered an additional built-up area of 67,000sqm for additional premium of ₹984 crore. This additional area was to be constructed over the nine floors planned using the previous built-up area, taking the height of the building, One BKC, to 20 from nine floors.
The court accepted the developer’s argument that as the built-up area and additional built-up area was to be consumed on the same plot and same building, the MMRDA was not justified in enforcing the time limit of March 2013. The bench noted that the addition of 11 floors above the original plan would require amending plans. “It is unreasonable and arbitrary action on part of MMRDA to insist on the completion of construction of built-up area within the period stipulated under the lease deed dated 15th July, 2008 and to penalise the petitioner,” the judges said.
{{/usCountry}}The court accepted the developer’s argument that as the built-up area and additional built-up area was to be consumed on the same plot and same building, the MMRDA was not justified in enforcing the time limit of March 2013. The bench noted that the addition of 11 floors above the original plan would require amending plans. “It is unreasonable and arbitrary action on part of MMRDA to insist on the completion of construction of built-up area within the period stipulated under the lease deed dated 15th July, 2008 and to penalise the petitioner,” the judges said.
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