Bldr told to pay soc 12L for ‘shoddy’ redevpt

‘INFERIOR QUALITY MATERIAL USED’
Mumbai:Sending a clear signal to builders who try to shortchange residents of redeveloped buildings, a consumer forum has directed a construction company to pay Rs 11.80 lakh compensation to a Bhandup society.

The forum held Classic Builders and Developers guilty of deficiency in service for failing to provide amenities that were promised on the redeveloped property.

The forum took into consideration the report submitted by an expert firm that said inferior quality material was used in the construction and this had led to leakage issues. “There is no doubt the construction was of inferior quality,” the forum observed.

The complaint was filed by Ganesh Cooperative Housing Society, located in Bhandup (E), on December 9, 2010. The society said it had 13 members and on March 24, 2005, it entered into an agreement with the company for redevelopment. According to the agreement the builder had agreed to hand over 225-sq-ft flats at no additional charge to each of the members. The members received possession of their flats in December 2008. Within the first year of the possession, the residents realized the builder had cheated them and used inferior quality material for construction, leading to a severe leakage problem. Additionally the builder had neither provided an automatic lift nor points for telephone and cable TV.

Despite repeated requests to solve the issues, the company did not pay heed to the residents. Alleging that the leakage had severely damaged the flats, the society filed a complaint before the additional district consumer disputes redressal forum.

The company filed reply and denied the allegations. It claimed that superior quality construction material had been used during the redevelopment and this was also conveyed to the society. The company further said residents took possession only after expressing their satisfaction with the flats and hence, there was no basis to their claims. But, the forum referred to the agreement that stated the company would provide the amenities claimed by the residents.
Courtesy:
Rebecca Samervel TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2014/02/17&PageLabel=5&EntityId=Ar00502&ViewMode=HTML

BMC gifts fire force land to builder

Without setting up the promised unit, civic body gives entire FSI to developer

The Brihanmumbai Municipal Corporation (BMC) has doled out a plot reserved for the fire brigade to a private developer for commercial purposes.

While it is understood that the plot was allotted to the developer at the instance of the Shiv Sena MLA from Dahisar, the local MP from the Congress has asked the civic body to revoke the decision.

Documents with BMC’s development planning and building proposals departments show a plot on the Dahisar-Link Road near the east-west flyover — approximately 4.5 acres — as being reserved for fire brigade.

The BMC has allotted more than half the plot to a private developer for constructing two-high rises (19 storeys each, with the first two floors for stilt parking). In lieu of this, the developer promised to build the fire brigade facility free of cost.

But sources say there’s more to the deal that what meets the eye. While the builder has not constructed the promised fire brigade, the BMC has allowed the developer to ‘develop the remaining 50 per cent site to the full permissible FSI’.

This means the developer will consume all the available FSI — even from BMC’s share.

Sensing a major scam, the New Link Road Resident Forum (NLRRF) from Dahisar have taken up the case.

Residents claim the BMC commissioner himself has revoked the plan in May this year due to political pressure. The revocation order has been put on hold. “When the BMC themselves can construct a fire brigade and use the remaining land for public amenities or for providing housing to the firemen, why should it gift the land to a private developer?

“Is the civic body, with a budget of Rs29,000 crore, so cash-strapped that it could not even spend Rs50 crore to build a fire station on its own?” said Harish Pandey, a forum member. The forum is planning litigation against the BMC.

Municipal commissioner Sitaram Kunte had, on May 28, given orders to revoke the commercial exploitation in a meeting with Sanjay Nirupam MP, along with local corporators and residents.

However, it is learnt that the building proposals department has given the Intimation of Disapproval (IOD) ‘in-principle’ approval for a proposed project to start construction the same day.

Senior BMC officials said it was after Nirupam’s meeting with Kunte that the BMC revoked the decision to use the land for commercial exploitation. However, local MLA Vinod Ghosalkar met Kunte afterwards and told him that commercial exploitation was in the interest of the locals as well as the BMC. “The decision taken to revoke the proposal should be implemented without any delay,” Nirupam said.
Courtesy:
Geeta Desai @desaigeeta
Published Date:  Dec 03, 2013
http://epaper.dnaindia.com/story.aspx?id=56073&boxid=31900&ed_date=2013-12-03&ed_code=820009&ed_page=3

Pay `2 lakh to Borivli society, builder told

The suburban district consumer forum has directed a developer to pay Rs2 lakh as compensation to members of a Borivli society towards additional water bills they had to pay because the developer failed to hand over the necessary certificates.

The forum has also directed the firm to hand over the necessary certificates to the society members within six months, and pay the society an additional Rs25,000 towards legal expenses.

The case dates back to 1992-93, when Jay Enterprises raised a society named Kanakai Krupa in Borivli. The order copy states, “After the developer handed over the possession of the flats, the society members had asked the developer to get the society registered. However, the developer turned down their request. Finally, in March 1999, the society members themselves got it registered. Further, when the society members approached the firm demanding the occupation and transfer certificates, the firm didn’t hand them over.”

The society members filed a complaint against the firm with the consumer forum in 2003. When the forum asked the firm and its partners to file their reply, they claimed that the firm was ready to hand over the occupation as well as transfer certificates to the society members if they are willing to bear the expenses.

After going through the evidence, the forum held that the developer was at fault for failing to hand over the necessary certificates to the society members within four months of the society’s registration. It further claimed that in Maharashtra, it is mandatory for the builder to hand over the occupation certificate to the society members, which the firm failed to do.
Courtesy:
Pranali Lotlikar @plotlikar
Published Date:  Nov 09, 2013
http://epaper.dnaindia.com/story.aspx?id=54893&boxid=32588&ed_date=2013-11-09&ed_code=820009&ed_page=7

Nerul builder held for selling 1 flat to many, hunt on for aide

Navi Mumbai: The Nerul police have arrested a 57-year-old builder for reportedly selling one flat to several buyers. An associate of the accused builder is also likely to be arrested soon.

Bhaskar Thevar had reportedly sold a flat in Leelatai Patil Apartment in Nerul Sector 27 to more than three parties, who have lodged complaints against him. Thevar will remain in police custody till April 26.

Thevar started the fraud when the building was in the construction stage, showing the flat to several people and selling it to them. The building is now complete and one family which bought the disputed flat has already occupied the premises.

“We will also soon arrest Thevar’s aide. They have been booked under the IPC sections 405 (criminal breach of trust), 415 (cheating), 418 (cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect), 420 (punishment for cheating and fraud), and 34 (crime committed with common intention),’’ said assistant police inspector AGosavi.

When asked how the accused could manage to sell the same flat to many, Gosavi said the accused had shown the flat to many parties, and then registered the property in their names at different registration offices in Navi Mumbai.

“We are investigating if officials from the registration offices are also involved. We are anticipating that more victims of this fraud will come forward to complain,’’ said the investigating officer.

Manohar Shroff, Navi Mumbai secretary of Maharashtra Chamber of Housing Industry (MCHI-CREDAI), said: “Such fraud builders are spoiling the name of the entire community of developers.’’

He added: “All seven property registration offices in Navi Mumbai should be computerized so that such frauds can be stopped.’’

Shroff also cautioned buyers, asking them to verify if the building in which they are looking to buy a flat has got a valid occupation certificate.
Courtesy:
Vijay Singh TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/04/25&PageLabel=5&EntityId=Ar00501&ViewMode=HTML

SRA Scam : Despite opposition, SRA clears prime plot for redeveploment

Builder Could Reap 8,000Cr Windfall
Mumbai: On the evening of December 31, as the city prepared to herald the new year, the chief minister-headed Slum Rehabilitation Authority (SRA) issued a letter of intent to a builder to redevelop a prime 17-acre plot of slum land in Worli under a controversial law.

The same project was among several placed on the backburner by the state government two years ago following an expose by TOI and after vehement opposition from the Brihanmumbai Municipal Corporation. The civic body, which owns the land off Dr E Moses Road, had insisted that the project be scrapped and competitive bids be invited. Now greenlighted again despite widespread disapproval, it will rake in a conservative profit of Rs 8,000 crore for the chosen developer, Lokhandwala Infrastructure.

“The decision to issue the letter of intent was taken at the highest political level,” a government source told TOI.

SRA wants NOC for Worli project in a mnth
Mumbai: Despite facing still criticism over the project in the past, the Slum Rehabilitation Authority (SRA) has issued a letter of intent to a builder to redevelop a 17-acre slum land in Worli under a contentious law.

The SRA wants the BMC to give a no-objection certificate to the project within a month. Its letter of intent—a copy of which is with this newspaper—says the builder will have to rehabilitate 3,787 tenement dwellers free of cost on 16 lakh sq ft of built-up area. As compensation, the developer will be entitled to over 12 lakh sq ft in free sale component. Property prices in Worli are in the range of Rs 40,000 to Rs 50,000 per sq ft.

In its edition on February 1, 2011, TOI had revealed how a little-known rule in the Slum Act was used to allocate almost 500 acres of slum pockets, including the Worli land, to six developers between 2008 and 2010. Called Section 3K, the rule allowed the state to pick builders on “first-come, first-served” basis. Furthermore, it excused the developers from obtaining the mandatory consent of 70% of slumdwellers during initial stages. This led to fights between rival builders, court cases and allegations of nepotism.

The same contentious law was employed last December by the SRA to re-initiate the Worli project, which was the most divisive of the shelved lot and the most lucrative because of its prime location. Highly-placed sources said a senior NCP leader was also keen to kickstart the project.

A few months after the TOI expose, the then municipal commissioner Subodh Kumar had written to the government, demanding that the state discontinue the project since it would only benefit the developer. He suggested that the civic body be allowed to redevelop the property—which covers Jijamata Nagar, Mata Ramabai Nagar, Vivekanand Nagar and Jivan Jyot—and exploit its full potential. Kumar also pointed out to the government that the affected slumdwellers had not given their consent to the builder.

The SRA’s unusual hurry in issuing the letter of intent to the builder has raised eyebrows. This is partly because no survey has been carried out to ascertain how many slum residents are eligible for rehabilitation. Also, the letter asks the municipal commissioner to obtain from the Supreme Court special permission to fix the cut-off date for eligible slumdwellers at January 2000 instead of January 1995.

But the biggest contentious issue pertains to Jijamata Nagar, one of the four enclaves making up the Worli project. Residents claim that Jijamata Nagar is not a slum but a series of chawl tenements where project-affected persons were rehoused 40 years ago. “We are project-affected people. How can the SRA declare this area a slum?” said Nadeem Ansari, one of the residents fighting the redevelopment.
Courtesy:
Nauzer K Bharucha TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/01/29&PageLabel=9&EntityId=Ar00302&DataChunk=Ar00900&ViewMode=HTML

HOUSING SCAM: Builder - neta nexus behind realty rise, say experts

The nexus between politicians and developers is what is causing property prices to skyrocket and burdening genuine consumers. According to property experts, many developers are politicians and vice versa.

“Almost all housing policies are tweaked to favour the builders. As a result, today the real estate sector is a complete mess. There is no transparency. The use of black money has increased manifold. Politicians feel that the real estate is best sector to direct their ill-gotten money to. Therefore, the property market never runs on real demand and supply, but on the wishes of politicians and developers,” said Ramesh Prabhu, chairman of Maharashtra Societies Welfare Association.

Another housing activist said that to put an end to this malpractice, the government should create a transparent real estate portal. “We have been demanding this exchange portal for a long time. It will record all real estate transactions. One copy will submitted to the income tax department, so the government can keep a tab on builders, as well as earn revenue. But sadly, no one is interested in such a law,” he said, requesting anonymity.

Prabhu said, “The time has come for the common man to awaken from his slumber and start demanding good policies. Otherwise, he will continue to suffer.”
Courtesy:
DNA Correspondent
Published Date:  Jan 02, 2013
http://epaper.dnaindia.com/story.aspx?id=35692&boxid=14149&ed_date=2013-01-02&ed_code=820009&ed_page=7

Double Money Scam - Developer who duped people of Rs 100 cr held

Sandeep Shukla, a developer wanted by Mumbai police for allegedly duping investors to the tune of around Rs 100 crore, was arrested by Delhi Police on Tuesday. Shukla was on the run for the past two years, and the city police have already contacted their counterparts in Delhi, seeking his custody.

Shukla had floated several real estate-related investment schemes, wherein people were lured to invest in housing projects in Karjat, Murbad, Kalyan, Kasara and Neral. Shukla went missing once the schemes went bust, but cops managed to arrest his brother Manoj and a relative.

A source from Mumbai Police’s Economic Offences Wing (EOW) said, “We suspect the money was invested in movies.”

Shukla launched a firm titled Aurum Realty, through which he floated housing projects at Kasara and Karjat. Later, he launched another firm,YescubeInfrastructure,seeking investments in weekend homes project at Neral, Murbad and Kalyan.

A real estate source said, “The investment offers were very lucrative. Anyone investing Rs 1 lakh was promised Rs 1.75 lakh as returns by the end of the year, besides a 300 sq ft space in these projects.”

Shukla even roped in singer-actor Himesh Reshamia to promote his schemes, which received good response, with close to 7000 investors puttinginmoneyintheprojects.Initially, investors received returns, but when a large number of them did not get their money back, a police complaint was filed.

Sandeep has been found to have launched another company to produce films. The EOW has booked Sandeep and others for cheating and criminal conspiracy.

Courtesy:
Mumbai Mirror Bureau, mirrorfeedback@indiatimes.com
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=MIRRORNEW&BaseHref=MMIR/2012/12/05&PageLabel=13&EntityId=Ar01300&ViewMode=HTML