MANOHAR RAMCHAND WADHWA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) We will need further data and information from both sides pertaining to the computation of the rival claims of the Petitioner and the Society for transit rent and the contentions of the Developer in that regard. On the next date we will work out a structured plan for clearing arrears, paying ongoing transit rent and completion of the project.

(2.) Certain further directions will also be necessary to the Slum Rehabilitation Authority ("SRA"). We are told that on the Real Estate Regulatory Authority's website one flat has been shown as sold to a third party. It is clear that if the Developer enters into any agreement or sales of free sale units, not only does the Developer do so at its own risk, but it is for the Developer to put the purchasers to notice of the pendency of these proceedings and to make it clear that the liability is that of the Developer and not of the Society or its members. We have also made it clear that if there is a default by the Developer in the final structured agreed set of directions, the result will be an immediate cancellation of the Letter of Intent and termination of the development agreement and permissions.

(3.) Third party flat purchasers will not then be heard to make any claim in respect of any part of the project. The reason for this is that the Developer's rights to put up and sell free sale units in the open market is dependent on the Developer fulfilling its obligations to pay full transit rent as agreed and to put the Society and its members into possession of their rehab/redeveloped homes. If there is a failure of this consideration, the Developer can claim no rights.