Delay in decision to change builder: HC raps Maharashtra govt, SRA

MUMBAI: Bombay high court has slammed the State government and Slum Rehabilitation Authority (SRA) for not taking a decision to allow change of the developer of a stalled redevelopment project in Wadala (E).
“The State and the SRA cannot adopt such an approach to the matter when the occupants who vacated their premises in 2013 are neither close to getting their promised permanent accommodation nor any transit rent,’’ said Justices Mahesh Sonak and Kamal Khata in Wednesday’s order.
They heard a petition by 20 members of Shaikh Misree SRA CHS that Omkar Realtors and Developers Pvt Ltd stopped paying transit rent since 2015/2016 citing its financial position and till date rehab building work has not started.
At a previous hearing, HC was informed by SRA that lender M/s J C Flowers Asset Reconstruction Pvt Ltd had submitted an application to take over the project with Omkar’s assets and liabilities. But the lender’s advocate Vinod Kothari said its proposal was only for change of the developer.
The judges said the petitioners are entitled to transit rent and “cannot be made to run from pillar to post to recover their dues.” They added that “neither the developer nor the lender is willing to pay arrears” and the State and SRA “are also sitting tight” over their proposals.
The judges said “none of the respondents are serious about solving the petitioners’ most genuine problem.” They noted that Omkar has raised its hands up stating it has no financial means to pay and at the same time is unwilling to let go of the project and pave the way for a new developer. “This unfortunate situation cannot continue any longer,” they added.
They said Omkar “cannot declare that it has no means to pay the transit accommodation rent, which it is statutorily duty bound to pay.” Also, till date, it continues to be “duly appointed developer for this redevelopment project.” They directed Omkar to deposit all rent arrears in HC by July 24. If for any reasons Omkar wishes to avoid compliance, its MD shall remain “personally present” in court and shall file an affidavit disclosing all assets of the company.
The judges noted that despite time granted SRA and State govt had not taken decisions on proposals by Omkar and the lender and “almost 6 months later” were seeking adjournments. They directed both to take “firm decisions” on the proposals within 2 weeks.