MUMBAI: Observing that their conduct has put the entire redevelopment at risk, Bombay high court recently directed seven members of a housing society to pay Rs 5 lakh in all in costs if they do not vacate their flats in a building at Chakala, Andheri (East), within two weeks.
“The docket of this court continues to be flooded with several such matters where minority members continue to attempt to stymie redevelopment on grounds which are ex facie frivolous, untenable, and contrary to the well-settled position in law,” Justice Arif Doctor said on July 1.
DEM Homes LLP had filed a commercial arbitration petition to adjudicate the dispute between it and the dissenting members. In Sept 2023, a redevelopment agreement was executed between the developer and Taruvel CHSL. In Oct 2023, a VJTI structural audit declared the building in the C1 (dilapidated) category. In March, after obtaining the IOD (intimation of disapproval), the developer asked residents to vacate. Initially, 76 out of 84 members vacated.
As the dissenting members refused to vacate, the developer moved the high court. After that, one member vacated his flat.
Advocates Sarosh Bharucha and Jay Vakil said grave prejudice is caused to the developer since it commenced paying hardship compensation, rent, brokerage, and transportation charges to members who vacated their flats. The majority of them are senior citizens. Kapadia said the dissenting members had filed a suit in the city civil court challenging the redevelopment, but there is no stay.
Advocates Narayan Bubna and Pooja Malik, representing three members, said the developer was unwilling to fulfil its obligation as it had sought exemption from executing a permanent alternate accommodation agreement with dissenting members. But Justice Doctor said the contention is misconceived as Bharucha clarified the agreement will be executed with them and they will be treated at par.
Told that the trio would oppose the petition, Justice Doctor decided to grant costs incurred in the petition. The developer submitted Rs 48 lakh in costs and the CHSL, Rs 3 lakh. In his discretion, Justice Doctor directed that Rs 5 lakh be paid if the seven members do not vacate their flats within two weeks of the upload of the order. “In the event all or any of them do not, then costs shall be borne by those who do not,” he said, directing it to be paid equally to the developer and members who vacated their flats. If the costs are not paid, the developer and CHSL may recover it as arrears of land revenue.
