Tag Archives: Bombay High Court

FIR against Niranjan Hiranandani

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Bombay High Court, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty: The Bombay High Court on Wednesday, June 26, ordered the Mumbai police Crime Branch to file an FIR against four persons, including Hiranandani Developers co-founder and managing director Niranjan Hiranandani and two police officers, in a complaint filed by a 28-year-old woman from Powai.

The woman has accused Hiranadani of getting residents of the Jai Bhim Nagar in Powai forcibly evicted by slum lords and destroying evidence of a shrine damaged by the men who tried to evict the slum dwellers.

She has also pressed charges of criminal intimidation and criminal conspiracy against the real estate baron.

The woman has also made allegations of rape against two police officers attached to the Powai police station.

“The incident took place on June 14. The police officers raped the petitioner in the morning but when she went to the police station, the police officers did not register her complaint. They also refused to carry out medical examination,” alleged the petitioner’s lawyer Gunratan Sadavarte.

“The court has directed the crime branch to register the FIR against Sanjay Sansare, Prakash Wadkar, senior police inspector Y S Jadhav and Niranjan Hiranandani,” Sadavarte said.

An email sent to Hiranandani’s communication team did not get any response. 

Mumbai builder lodge defamation suit of Rs. 1,086 Crore against false complainant

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Bombay High Court, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty: While the customers lodge complaints against builders, here is a case in which a builder has registered a defamation case against a customer. The Mumbai-based reputed Haware Engineers & Builders have filed a defamation suit amounting to Rs 1,086 crore against one of its former customers in the court.

Doma Bapu Brahmankar, the accused in the case, was engaged into filing wrongful complaints and maligning the reputation of Haware Builders after he failed in making payment against a property to Haware Builders.

About nine years ago Brahmankar had entered into an agreement of purchasing a commercial property at Infocity in Vashi. However, Brahmankar failed to make required payments in due time following which the agreement was cancelled by Haware Builders.

Suresh Haware, Managing Director, Haware Engineers & Builders says, “Doma Bapu Brahmankar had paid us three cheques towards the purchase of property. The cheques were dishonoured and hence, we had to cancel the agreement.”

As per the complaint, Brahmankar allegedly started harassing the company by registering false complaints with the police and court. However, none of the complaints were admitted. Nonetheless, Brahmankar also started negative publicity of the Infotech Park hampering the image of the property and company.

When consumer activism against developers backfires-III

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Bombay High Court, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty Exclusive: When the issue of Maharashtra Government levying 5 per cent Value-Added Tax (VAT) surfaced and the MCHI-CREDAI and a couple of other developers’ and trade associations moved to the court, a consumer group called FORAM–Flat Owners’ Rights protection Action committee in Maharashtra – was formed with consumer interest groups coming together and seeking to fight the vexed VAT issue on flats in Maharashtra.

FORAM claimed to mobilise public opinion against the VAT on flats sold between 2006 and 2010 with the statement of Chandrashekhar Soman, Convener of FORAM,” We will mobilize public opinion against all over Maharashtra with district level committees VAT and appeal to the government to scrap the tax altogether for flat buyers. This is just the beginning and people across section will join in the movement.”

Businesses all over the world run on trust, and tweaking the rules of the game only leads to dilution of trust, a chance that no realtor would ideally like to take. For example, most of the developers have a clause in the agreement that all future taxes are to be borne by the customer as the developers are merely collecting the indirect tax from the customers and depositing the same with the government.

Developers assert they are rather forced to take up litigation for recovery of such amounts from customers. Any litigation by a handful of disgruntled buyers only delays the project and hence home buyers at large suffer the litigation cost by project delay.

Madhrendra Sharma, a Supreme Court lawyer categorically says that, the terms of agreement between the flat owner and the builder plays a key role. According to him, most of the houses financed by the banks already go through the due diligence by both the buyer and the lender, and to say that the developer has made it one-sided amounts to arm twisting by the buyers.

“If the developer has clearly stated in the agreement that any future tax implemented by the government has to be paid by the buyer, the flat owner is liable to this entire tax. However, if the agreement does not contain the clause, the onus is solely on the builder. Similarly, if the developer has stated in his sale agreement that in compliance to the law of the land, the project may add to the extra floors subject to the mandatory approval, then the law of the natural justice says that a buyer who has signed the agreement should not move to the court. The chances of his case being upheld are also very minimal,” says Sharma.

…..to be continued

Bombay HC allows Shapoorji Pallonji to sue Qatar Airways

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Bombay High Court, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyTrack2Realty-Agencies: The Bombay High Court has cleared the way for construction major Shapoorji Pallonji and Co. to sue Qatar Airways for Rs 59 lakh with interest.

The airline had claimed it could not be sued without the permission of the Indian government as it has the status of a “foreign state”, being owned and controlled by the ruler of Qatar. However, the HC held the airline could not be said to be a “foreign state”, and the company’s claim is based on a commercial dealing.

In its order, a bench of Justice D Y Chandrachud and Justice A A Sayed said, “In the world today, corporate bodies, both Indian and foreign, carry on trade, commerce and business across geographical and national boundaries… In their commercial and business operations, such corporate entities cannot claim an immunity to civil actions.”

The firm has filed a suit against the airline based on a contract to do interior decoration of the offices of the airline.

The airline had questioned whether such a suit could have been filed, pointing to section 86 of the Civil Procedure Code. The section lays down that a foreign state cannot be sued in any court except with the written consent of the Central government.

The judgment said, “We need only to observe that the claim is founded on a purely contractual and commercial dealing between the appellant and the respondent. The appellant is not a foreign state within the meaning of sub- section (1) of section 86. It has a distinct legal personality of its own which finds recognition in the contractual relations into which it enters.”

The court noted that the company carries on commercial operations, operates offices, engages employees and solicits business in several countries across the world.

PAL-Peugeot land fetches 601 cr

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Citra Developers, PAL-Peugeot, Gammon India, ICICI Bank, Fiat India, Bombay High Court, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIn what real estate experts see as a sign that land rates are becoming more realistic, a 135-acre plot that belonged to the defunct PAL-Peugeot auto company in Dombivli has been auctioned off to Metropolitan Infra Housing Pvt Ltd (a subsidiary of Gammon India) for Rs 601 crore.

Bombay high court Justice R Y Ganoo on Friday confirmed Gammon’s bid following a December 2010 auction. This is the latest development in a nearly 12-year saga to sell a total of 180 acres located 5 km from Dombivli station.

Gammon’s bid was merely a crore higher than its nearest competitor, Neptune Group. Oberoi Realty, the third bidder, offered Rs 300 crore.

Aside from rates dropping, experts said the deal is important considering the liquidity crunch in the market.

Dombivli land unlocked
May 12, 1999: ICICI Bank files suit for recovery of Rs 136 crore from PAL-Peugeot
May 12, 1999 to Jan 27, 2004: Four unsuccessful auctions for 180 acres
Sep 26, 2005: PAL-Peugeot winds up
Nov 27: State files notice seeking unearned income on 45 acres
Mar 4, 2008: HC splits land into 135 and 45 acres
Apr 22: Indiabulls wins auction with Rs 676-crore bid for 135 acres
Jun 27: Indiabulls withdraws offer as it can’t match Rs 1,650-crore reserve price
Jan 21, 2011: High court confirms Gammon India’s winning bid
Feb 1: High court to decide on remaining 45 acres ‘Land rates in tune with market conditions.

The court’s order is also significant for 1,712 displaced Pal-Peugeot workers,who will finally get dues that have been pending since the company shut down in September 2005.

“The order will especially benefit about 40 workers who were on the verge of losing their homes as they had defaulted on loans taken from HDFC Bank in 1995. The bank, thankfully, accepted our plea to delay sealing the flats, as we explained that the court’s order on the auction was due anytime. I pray now that we receive our dues before March 31 so we can repay the loans,” said Umesh Upadhyay, secretary of the Sakharam Seth Employees Union, the registered trade union of PAL-Peugeot. The union expects to get dues of Rs 125 crore for the period from June 1998 to September 2005.

In the earlier round of bidding-the sixth-in April 2008, the highest price offered was Rs 676 crore by Citra Developers, a subsidiary of Indiabulls Real Estate. Gammon then was no. 2 with a bid of Rs 675 crore. Indiabulls’ offer did not go through because the court receiver had fixed a reserve price of Rs 1,650 crore.

The high reserve price-Rs 2,855 per sq ft for undeveloped land-is a reflection of the staggering expectations that prevailed not long ago. The reserve price fixed in the latest round was a more realistic Rs 450 crore. Experts said this is more in tune with current market conditions.

Real estate experts said the substantially lower price offered in the recent bidding indicates that land rates that had shot up after the recession are starting to soften.

“The price in this auction seems reasonable, considering the liabilities on the land. Still, it will allow Gammon to make some margin of profit after development,” said Pranay Vakil, chairman of Knight Frank, global property consultants.

PAL-Peugeot’s original 180-acre plot was put up for auction in 1999. It was split into 135 and 45 acres in 2008 when the state claimed its share of unearned income. The high court has not confirmed the sale of the 45-acre plot as the bid amount was much lower than the reserve price fixed by the court receiver.

PAL-Peugeot’s land was put up for auction after the company failed to pay the interest and value of 3,41,98,066 non-convertible debentures to ICICI Bank, trustees for the debenture holders. ICICI Bank, which was represented by Maniklal Kher Ambalal and Co, filed suit in the high court for Rs 136.79 crore, the principal amount.

The high court then appointed a court receiver and asked for the sale of properties, including the land. The first four auctions failed as the highest bids did not match the reserve price.

The fifth auction was never held as the state intervened. The sixth auction involved the Citra bid, which the high court allowed Citra to withdraw and reclaim 25% of the amount deposited.

The workers’ union challenged the court’s decision and asked for a reduced reserve price. It wanted Citra’s offer accepted, as a sale would ensure reimbursement of dues.

The high court refused and the union moved the apex court. During the hearing, the court asked Citra to give a fresh bid considering a reserve price of Rs 550 crore in light of the economic slowdown. Citra declined. The SC told the high court to carry out a fresh valuation and hold another auction.