Builder To Stand By Old Terms Of Redevelopment

Ref: TOI Dt:26/06/2010
Relief for Sangam Society Residents

Mumbai: In A Major Relief For Residents Of Santa Cruz’s Sangam Cooperative Housing Society, The Builder Redeveloping Their Property Has Finally Agreed To Stick To The Original Terms Of Agreement He Had Signed With The Society.

    In April2009, TOI Had Reported How The Builder, Bricklayer Constructions (Rustomjee) Had Left The Residents High And Dry – The Developer Was To Give 26% Extra Space To Each Of  The Flat Owners Whose Old Apartments Ranged From 558 Square Feet To 900 Square Feet In Size. However, After Demolishing Their Three-Storeyed Building Located On S.V. Road In May 2008, Bricklayer Turned Around And Told The 32 Residents It Would Now Give Them Only 10% Additional Space In The New Building.

   When Residents Protested, The Builder Stopped Paying Rent Of Rs33,000 To Rs55,000 A Month To Each Flat Owner For Their Transit Accommodation. A Spokesperson For Rustomjee Told TOI The Issue With The Society Had Now Been Resolved. “We Have Decided To Give Them The Additional Space As Agreed Upon. The Work Has Already Commenced At The Site,” He Said. Residents Said That The Matter Was Now Amicably Resolved After A Series Of Meetings With The Developer. “He Has Already Started Paying Rent To All The Members With Retrospective Effect,” They Said.

   However, Sources Claimed There Was Also “Political Intervention” At The Highest Level To Solve The Issue. “A Prominent Developer Who Is Believed To Be Close To A Union Minister Brokered The Agreement Between The Two Parties. The Residents Are Relieved Because Many Feared They Would Have No Roof Over Their Heads If The Matter Had Not Been Resolved Soon,” Said Sources. Since The Past Ten Months, The Middleclass Residents Were Paying Hefty Rents From Their Own Pocket.

    The Society Had Appointed The Builder In 2005 To Redevelop The Dilapidated Building. According To The Agreement For Development Signed In July 2007, Rustomjee Was To Provide Each Member 26% Extra Space And Also A Hardship Allowance Of Rs 8.5 Crore To The Society And 22 Months Rent Running Into A Few Crore So That The 32 Residents Could Lease Flats In Neighboring Area Until The Redevelopment Was Complete.

   However, The Economic Downturn Last Year Forced The Builder To Change The Plans-He Informed The Residents That The Project Was No Longer Feasible Because Of The Crash In The Property Market And Told Them To Accept Only 10% More Space. The Builder Claimed He Would Still Lose Rs5.5 Crore Even After Reducing The Extra Space To 10 %. The Only Option That Society Had Was To Move The Court. But The Fear Of Prolonged Litigation Made Them Realize That They Had To Some How ‘Persuade’ The Developer To Stick To The Agreement.

 According To Vice President Of LandguruZ-“The Agreement Between The Society/Individual Members & The Developer Has To Be Meticulously Drafted Ensuring Only One Interest i.e. To Safe Guard The Society Individual Member’s Redevelopment Rights”.

  Work With The Developer In Such A Way That He Dose Not Go Back With His Commitments Does Done With The Society And Individual Members Thereby Not Halting The Project Midway.