Monday, March 15, 2010

Builder hits jackpot with 3-acre Worli plot

MUMBAI: Some of the city’s leading builders have, for the past six years, been in the fray to redevelop this prime three-acre plot opposite the Glaxo property in Worli. The Shivshahi Cooperative Housing Society, comprising 192 flats in 12 buildings, recently finally handed over the redevelopment rights to Wonder Value Realty, a joint venture floated by HBS Realtors and IL&FS.

The developer has worked out a financial package of Rs 101 crore, which includes a corpus of Rs 10 crore to be paid to the society and Rs 91 crore more to be distributed among members. Besides, each member will get a 935 sq-ft carpet area apartment in the redeveloped building.

Though 176 of the 192 members have given their consent, a handful of dissenting residents have decided not to take it lying down. They have issued a legal notice to the society, alleging several irregularities, including appointing the developer without calling for tenders as laid down by a 2009 government resolution. They alleged that the society failed to invite comparative offers from other builders.

Accusing the society of suppressing facts from the general body, the legal notice stated that the builder’s offer did not cover key issues, like third-party insurance amount and liquidated damages; the offer was not evaluated by a project management consultant or architect; and that the developer’s experience in carrying out such redevelopment projects and the status of its current projects were also not known. 

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