Homebuyers serve legal notices to developer, MMRDA; allege defects, wrongful demolition

The upscale project in Wadala; (right) an incomplete flat offered for possession, according to a buyer. (Express photo by Prashant Nadkar)

The ambitious New Cuffe Parade project by the Lodha Group at Wadala has run into trouble after a group of homebuyers, who bought flats in the upscale project, recently served legal notices to the developer as well as the Mumbai Metropolitan Region Development Authority (MMRDA). The group has alleged defects in construction and wrongful demolition of higher floors at four towers of the project.

On July 26, a group of flat owners, through their lawyers, wrote to Bellisimo Crown Buildmart Private Limited — a Lodha Group company — claiming that they were “forced to take possession of their flats, which were not complete as per the agreement”. On June 30, a similar notice was sent to the MMRDA on behalf of the flat owners. The four towers were granted part Occupancy Certificate (OC) from ground to 40th floor by the MMRDA on June 8, 2017.

Thereafter, the developer started offering possession to the buyers. One such buyer said while he was offered possession in December 2017, the three-bedroom flat was far from complete. “We were promised possession in 2015 but the project was delayed by over two years. I made my payments in 2015 and have already paid Rs 1.25 crore as interest on my loan alone. I still haven’t got possession of my flat. I am frustrated and want out of this project,” he said. He added that since the OC for flats until the 40th floor were received before the Maharashtra Real Estate Regulatory Authority (MahaRERA) came into force last year, these floors were not governed by the RERA.

Another customer said that while the family had paid the entire price after signing the possession documents, the flat was not ready and they had to live in a rented apartment. “The developer offered possession even before the flat was ready, so that it could force us to pay the full value,” said the buyer.

“We are representing around 30 such flat owners and have sent two legal notices. While MMRDA has responded saying that the notice has been forwarded to Lodha, the developer’s lawyers have said they will revert soon,” said Bhushan Shah, a partner at law firm Mansukhlal Hiralal and Company. “We are in the process of moving court,” he added.

The Lodha Group, a realty firm founded by BJP legislator Mangal Prabhat Lodha, had planned 45-storey residential towers spread across about 23 acres as part of the project, according to the company’s website. However, the complainants claimed that the 40th to 45th floors were in violation of the permissible height allowed by the Ministry of Civil Aviation owing to the property’s proximity to the Mumbai airport.

In December 2015, the Airports Authority of India had restricted the height of buildings in the New Cuffe Parade area from 119.61 m to 133.48 m — roughly sufficient to build 36 to 40-storey buildings.

Some of these higher floors are now being demolished, according to the legal notices. The notice sent to Bellisimo stated: “After taking possession, it was noticed by our clients that you (Bellisimo) were demolishing the 41st to 43rd floors of Evoq and 41st to 45th floors of Enchante, Dioro and Elisium… The said demolition is not only endangering the lives of our clients but also causing massive disturbance, making it increasingly difficult to reside in the aforesaid buildings.”

When contacted, a Lodha spokesperson refuted all allegations. “It is a multi-phase project comprising more than 12 towers. Phase 1, which consists of four towers, was completed in 2017 and possession has been offered. We have already handed over more than 500 units to the buyers. We strongly refute the allegations that possession has not been offered and we are happy to provide possession to buyers who claim otherwise.”

The spokesperson added that the project has witnessed significant delays due to regulatory issues and the buyers were regularly informed about the same. “The permissible height was finally clarified to us in early 2018, almost seven years after commencement of the project, and based on that we have had to make changes to the terrace level, which is complete now and will be fully ready soon. In addition to the huge costs incurred by us to make these changes, we have suffered other significant losses that we have absorbed and not passed on to the flat owners.”

R A Rajeev, MMRDA Metropolitan Commissioner, refused to comment on the matter.