Bombay HC Halts BMC Action At Rustomjee Crown

The Bombay High Court has directed the developer of Rustomjee Crown in Prabhadevi to file a response to a suit by flat owners challenging the Brihanmumbai Municipal Corporation's (BMC) demolition action against apartment foyers.

The court has restrained the BMC from taking further action against the affected flats until the next hearing. The suit has been filed by 246 plaintiffs representing around 140 flat owners, who have challenged the BMC's action initiated on August 24 against foyers in the three-tower residential complex.

The plaintiffs have alleged misrepresentation, breach of contract, and fraud against the developer, Keystone Realtors Ltd. They claim that the foyer spaces were represented as exclusive areas attached to individual apartments and were separately reflected in marketing material, apartment plans, costing documents, and registered sale agreements.

The dispute allegedly arose when the developer sought an occupation certificate for Tower C, following which the BMC allegedly found that the foyer areas involved consumption of excess floor space index. The plaintiffs have sought Rs 1,000 crore in damages, quashing of the BMC notices, protection against demolition, and directions to regularize the foyer spaces.

The Rustomjee Group has denied any violation, stating that the construction was undertaken in accordance with the plans sanctioned and approved by the competent authorities as per 1991 DCR. The group said the project had received an occupation certificate and that it was cooperating with the authorities.

The BMC has issued notices to the first batch of 186 flats and has demolished eight foyers in five-bedroom apartments. The civic action was expected to continue for about a month. The plaintiffs have also sought preservation of the developer's unsold inventory to secure compliance with any eventual orders.

The court has directed the developer to file its reply by September 17. The case highlights the ongoing dispute between flat owners and the developer over the demolition of foyers in the Rustomjee Crown complex.

The Rustomjee Crown complex comprises Towers A, B, and C, with Towers A and B being 53-storey buildings, and foyers existing in nearly 95% of the apartments. The BMC's action has sparked concerns among flat owners, who are seeking protection against demolition and regularization of the foyer spaces.

The case is significant, as it involves a large number of flat owners and a substantial amount of damages being sought. The court's decision will have implications for the developer, the BMC, and the flat owners, and will likely set a precedent for similar cases in the future.

In conclusion, the Bombay High Court's decision to stay the BMC's action and seek the developer's reply is a significant development in the case. The court's eventual decision will have far-reaching implications for the parties involved and will likely impact the real estate industry in Mumbai.