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Common JVPD Plots Belong to 14 Housing Societies, Not Mhada

Jun 21 2024

Court Rules in Favor of 14 Housing Societies Over State Housing Authority in JVPD

MUMBAI: In a significant ruling, the Bombay High Court has declared that common plots (utilities and amenities) in the Juhu Vile Parle Development (JVPD) area are owned by 14 housing societies and not by the state housing authority, Mhada. Justice Bharati Dangre's order earlier this week clarified that Mhada holds no rights, title, or interest in these plots following the execution of registered common plot conveyances along with individual plot conveyances in favor of the 14 societies. The decision came after one of the societies legally challenged Mhada’s claim over these plots.

Background of the JVPD Area

JVPD is now an upscale neighborhood, home to Bollywood producers, superstars, wealthy businessmen, and professionals. The ready reckoner rate for a plot in this area ranges from Rs 1-1.5 lakh per square meter, while residential flats cost around Rs 65,000 per square foot. Around 1950, the Bombay government acquired approximately 223 acres for housing schemes in Juhu and Vile Parle, at the request of the Juhu Vile Parle Development Cooperative Housing Association Ltd.

Legal Proceedings and Conveyance History

The plaintiffs, including Vithalnagar CHS Ltd and Juhu Vile Parle Cooperative Housing Association Ltd, stated that in 1951, the government issued an order for the land's development and assigned the execution to the Bombay Housing Board (BHB). BHB then entered into 10 separate building plot conveyances with the societies, followed by three more conveyances in 1956. These conveyances transferred the JVPD housing scheme plots on the left bank of Irla Nullah to each co-owner society for consideration, with the societies paying Rs 60 lakh for a total area of six lakh square yards (123 acres).

Dispute Over Common Plots

The common plots included 18 amenity plots, 16 utility plots, 40 feet internal roads, and canalization and creek of JVPD. Between 2010 and 2011, the 14 societies issued notices to BMC and Mhada to complete the acquisition of plots reserved for various purposes such as a library, playground, municipal retail market, DP Road, garden, and recreation ground. Acquisition proceedings began upon receipt of the purchase notices, but were suspended in 2017 when BMC and Mhada claimed that the common plots belonged to Mhada and that the co-owner societies were tenants.

High Court's Decision

Vithalnagar CHS Ltd, one of the co-owner societies, approached the Bombay High Court to resolve the ownership issue. The court observed: “Since the corporation, without raising the challenge to the Deed of Conveyance and transfer of land in favour of societies by the Board, which act the Board indulged in with prior permission from the Government of Bombay. After the lapse of almost 64 years, it is not open for the corporation to adopt such a stand premised on its own reading of deeming of vesting of the open lands in its favour once the scheme was completed.”

Conclusion

This ruling confirms that the common plots in the JVPD area legally belong to the 14 housing societies, providing clarity and closure to a longstanding dispute over land ownership in one of Mumbai's most prestigious neighborhoods.

Dharavi Redevelopment Project Requests Five-Year Lease for 15 Acres in BKC

Jun 20 2024

Major Request from MMRDA for Project Facilitation

MUMBAI: Dharavi Redevelopment Project Pvt. Ltd. (DRPPL), a special purpose vehicle formed by the state government and the Adani Group, has formally requested a five-year lease for 15 acres of land in Bandra-Kurla Complex (BKC) from the Mumbai Metropolitan Region Development Authority (MMRDA). The land, previously used as a Metro works casting yard, is essential for storing heavy machinery required for the extensive redevelopment of Dharavi.

Background of the Dharavi Redevelopment

In November 2022, the Adani Group secured the bid to redevelop Dharavi with an initial investment of Rs 5,069 crore. The redevelopment project spans 600 acres and aims to transform one of Mumbai’s largest slum areas, housing nearly 12 lakh residents.

Request Details and Intentions

According to sources, DRPPL sent a letter on June 11, requesting the BKC land at commercial rates and agreeing to adhere to MMRDA’s terms and conditions if allocated. An MMRDA official confirmed the deliberation on this request. The SPV is actively seeking land outside Dharavi to support the redevelopment efforts.

Additional Land Acquisitions for the Project

- Railway Land Development Authority (RLDA): On March 13, 2024, RLDA transferred 27.57 acres, including a scrapyard near Mahim station, to DRPPL. This land is critical for building around 1-1.5 lakh tenements of 350 square feet each for eligible residents.
- Brihanmumbai Electric Supply and Transport (BEST): DRPPL has also requested 12 acres from BEST, encompassing two prominent bus depots in Sion East — Dharavi and Kalakilla. These depots, with a total parking capacity for about 300 buses, include offices, staff housing, and amenities for drivers and conductors.

Government Support and Future Plans

In February 2024, the Maharashtra cabinet approved a proposal to request 283.4 acres of salt pan land from the Centre at the current market value on a 99-year lease for the Dharavi Redevelopment Project. This is an exception to the usual 30-year lease period, highlighting the project’s importance.

Conclusion

The Dharavi Redevelopment Project is moving forward with significant land acquisition efforts to facilitate the transformation of one of Mumbai’s most densely populated areas. The request for 15 acres in BKC from MMRDA marks a critical step in ensuring the project’s progress and success, promising a substantial upgrade in living conditions for Dharavi’s residents.

Abhishek Bachchan acquires 6 flats in Oberoi Sky City, Borivali East.

Jun 20 2024

Major Investment in Oberoi Sky City
Bollywood actor Abhishek Bachchan has made a significant real estate investment by purchasing six premium apartments in Mumbai's Borivali suburb. The total transaction amounts to Rs 15.42 crores and involves properties in the luxurious Oberoi Sky City, developed by a subsidiary of Oberoi Realty, Incline Realty.

Details of the Purchase
• Total Area: 4,894 sq ft on the 57th floor.
• Price: Rs 31,498 per sq ft.

Apartment Sizes:
- Two apartments of 252 sq ft each, purchased for Rs 79 lakh each.
- Four apartments of approximately 1,100 sq ft each, with a total cost of around Rs 3.5 crore.

The transactions were finalized on May 28 and officially registered on May 29.

Bollywood's Real Estate Trend
Real estate remains a preferred investment among high-net-worth individuals, including Bollywood celebrities who see it as both a personal asset and a lucrative investment opportunity. Prominent figures such as Amitabh Bachchan, Shahrukh Khan, Shilpa Shetty, Akshay Kumar, Abhishek Bachchan, and Aishwarya Rai have all invested in properties.

Recent High-Profile Transactions
• John Abraham: Recently purchased a bungalow on Linking Road in Mumbai’s Khar locality for over Rs 70.83 crore.
• Other Celebrities: Ranveer Singh, Hrithik Roshan, Rani Mukherjee, Alia Bhatt, Disha Patani, and Janhvi Kapoor have also made notable real estate acquisitions in recent years.

Conclusion
Abhishek Bachchan’s recent purchase underscores the ongoing trend of Bollywood stars investing in high-end properties. With strategic acquisitions like these, celebrities continue to enhance their investment portfolios, solidifying real estate as a key asset class for long-term financial growth.

MCGM Declines Stop Work Notice for Godrej Properties' Kandivali Project

Jun 18 2024

Municipal Decision Favors Continuation of Construction
The Municipal Corporation of Greater Mumbai (MCGM) has decided against issuing a stop work notice for Godrej Properties’ ongoing residential project in Kandivali. This decision comes despite a request from the defence ministry’s Central Ordnance Depot (COD), which had raised concerns about the project's proximity to the Kandivali COD complex.

Defence Ministry Concerns
The defence ministry unit had previously written to the civic authority, requesting a suspension of work at the 'Godrej Reserve' project, citing its closeness to the COD complex. The project spans an 18.6-acre land parcel and is estimated to generate Rs 7,000 crore in revenue. According to the company’s FY24 regulatory filing, approximately 1.91 million sq ft of the project has been launched, with bookings for 1.51 million sq ft worth Rs 2,693 crore already secured.

MCGM's Legal Standpoint
The MCGM, in its response to the COD, highlighted that numerous ongoing developments are within the vicinity of the COD in Kandivali and Malad. The civic authority noted that these projects comply with the circular dated October 21, 2016, which allows construction beyond 10 meters from defence establishments. Therefore, issuing stop work notices to such projects would not be in accordance with the law.

Official Statement
The letter from MCGM’s building proposal department, dispatched to the COD on Tuesday, stated: “The construction being undertaken is permissible under the provisions of the Maharashtra Regional Town Planning Act, 1966, and Development Plan, 2034, which was formulated after considering all aspects of safety and security. We have not received any suggestion/objection while making the development plan 2034, and there is vast existing urban settlement and construction in the vicinity.”

Defence Ministry Guidelines
In a note issued in May, the COD had pointed out that the Godrej plot is within 500 meters of the Kandivali complex, referring to the union government’s May 2011 guidelines. These guidelines prohibit construction within 100 meters of any defence establishment and limit construction to a maximum of four storeys within 100-500 meters, pending a no-objection certificate (NOC) from the defence ministry. However, the project's permission was granted during a transitional period between the Bombay High Court's decision to discontinue the NOC requirement and the Supreme Court’s ruling to uphold it in February.

Godrej Properties' Project Potential
Godrej Properties acquired the plot in December 2022, planning a development potential of about 3.72 million sq ft with an estimated revenue potential of nearly Rs 7,000 crore. The project will mainly feature premium residential apartments and some retail units, benefiting from a prime location with access to the Western Express Highway, metro, and suburban railway stations.

Record Performance
Godrej Properties reported its best-ever quarterly and annual performance in terms of sales bookings, net profit, collections, project deliveries, and business development for the period ending March.

Conclusion
The decision by MCGM to continue Godrej Properties' Kandivali project underscores the regulatory balance between urban development and security considerations, paving the way for further advancements in Mumbai's real estate landscape.

Puravankara Board Approves Rs 1,000 Crore Fundraising via QIP

Jun 18 2024

Strategic Fundraising Initiative
Puravankara's board of directors has approved a fundraising initiative of up to Rs 1,000 crore through qualified institutional placement (QIP). This decision aims to bolster the company's financial position and support its ongoing and future projects, as revealed in a recent BSE filing.

Qualified Institutional Placement Details
The QIP will be conducted in one or more tranches, allowing Puravankara to strategically raise capital as needed. This approach provides flexibility and aligns with the company's growth and development plans.

Provident Housing's Corporate Guarantee
In a separate regulatory filing, Puravankara disclosed that Provident Housing, a wholly-owned subsidiary, has provided a corporate guarantee in favor of Piramal Enterprises. This guarantee secures a Rs 90 crore Rupee Term loan facility for Provident Housing, intended to finance the acquisition of approximately 31.8 acres of land in Dabolim, Goa.

Recent Land Acquisitions
Puravankara's expansion efforts are evident in its recent acquisitions. Purva Oak, another wholly-owned subsidiary, has acquired 12.75 acres of land in Patlipada on Ghodbunder Road, Thane. This land has an estimated potential carpet area of 18.20 lakh sq ft and a projected gross development value (GDV) of Rs 4,000 crore over the project's lifecycle.

Conclusion
Puravankara's strategic fundraising via QIP and its recent land acquisitions highlight the company's commitment to growth and development. With substantial projects underway and robust financial planning, Puravankara continues to strengthen its position in the real estate market.

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