Mahindra Lifespaces, GE Shipping in dispute with locals over land ownership
Sep 24, 2013
Source : The Economic Times


MUMBAI: A tussle for control over unused land with development potential in a residential project has erupted between Mahindra Lifespaces Developers, GE Shipping and existing residents of their project, Great Eastern Gardens, in a suburb of Mumbai, a development that can have repercussions for builders and home buyers.

Around 400 residents of the complex are seeking control of the undeveloped land worth over Rs 800 crore inside the complex. The residents say that the vacant plot has a total development potential of 7.5-8.0 lakh sq ft and are objecting to further development by the developers.

GE Shipping and Mahindra, however, claim that they are the rightful owners of the land parcel and will go ahead with their plan of constructing two more buildings. But the irate residents say that the developer had not informed them about their proposed plan when they booked their apartments and had not made a complete disclosure of the development potentiality. Therefore, they argued, that the proposed buildings are not part of the original layout. The complex includes six residential buildings comprising 4 condominiums.

"Residents of Great Eastern Gardens are entitled to balance (of) FSI, TDR and additional FSI as the property has already been submitted under the provisions of Maharashtra Apartments Ownership Act, 1970, by declaration and supplemental declarations, the last of such supplemental declaration being as far back as in December 2008 and, moreover, since GESCO failed to convey the land within four months of last supplemental declaration," said Savitri Dadhich, a resident of the Great Eastern Gardens and partner at Dastur Dadhich & Kalambi, Advocates & Solicitors.

But Mahindra Lifespaces and GE Shipping stuck to their guns, saying Great Eastern Gardens has been developed in a phased manner, in line with the development plan that was envisaged at the start of the project.

"This fact has been categorically disclosed in the relevant agreements with the flat purchasers that the project is being developed phase-wise and, further, that GE Shipping as owners have the right to construct the said buildings. Therefore, the proposed construction is in line with the development plans and is not a new addition to the project," GE Shipping and Mahindra Lifespaces said in their response to ET's email query. The civic authority has also granted the commencement certificate for the proposed construction, the response said, while adding that the claims made by the residents have no legal validity.

Residents of the complex, however, have a different take. According to Dadhich, the layout plans for construction on the entire property have not been disclosed in the declaration/supplemental declaration of AB and CD condominiums. Most of the residents of the GE complex were not informed about future development plans.

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