Saturday, July 4, 2015

Allahabad High Court's stay on construction in Omaxe Grandwoods comes as a warning to all developers

Today builders change building plans at the drop of a hat, violating construction norms without fear of legal repercussions. However, a great concern is that development authorities in Noida and Greater Noida are wilfully disregarding the Uttar Pradesh Apartment (Promotion   of Construction, Ownership and Maintenance) Act, 2010. They are offering additional FAR (floor area ratio, which allows builders to add more structures or floors to buildings); and clearing changes in building plans without ensuring if consent has been taken from residents in the projects as per the Apartment Act.

The matter was brought to light when the Allahabad High Court recently came to the rescue of homebuyers, restraining real estate developer Omaxe from further building any structures in its completed project, Grandwoods, in Sector 93, Noida.
How a developer was permitted by the Authority to revise its project plan after completion of the project is a question that only the top officials of the Authority can answer.

Grandwoods, launched in 2006 on a 1,20,000 sq mt plot in sector 93B, Noida, was allowed 1.5 FAR in its original layout plan. Apartments were sold till 2010 on the basis of the  original layout plan. When the project was almost ready, on May11, 2011, Omaxe applied for 33% extra FAR. Two days later, on May 13, 2011, the builder also applied for a completion certificate. A few days later, on May 31, Omaxe was given the required FAR, which meant that the builder could add more structures or build further on them.
Soon after that, in July 2011, Omaxe started construction on the basis of the revised plan and allegedly encroached upon common areas and facilities such as parks and common parking. In August, 2011, the apartment owners filed a writ petition in the Allahabad High Court (HC) for scrapping the revised plan for violation of the UP Apartment Act 2010. They alleged that villas would be built as per the new plans on areas meant for parks with grass lawns.

The HC granted an interim stay on construction on August 30, 2011, but in 2014, the developer again encroached upon another park area and started excavation work to construct two high-rise towers called Riyasat. Grandwoods resident Dipesh Jain filed another petition with the HC on April 2015. He pleaded that as per provision 4 (4) of the UP Apartment Act, consent of buyers was necessary for alterations in housing plans. No consent was given by the homebuyers, nor did anyone seek their consent for making alterations or changes in the original housing plans. Rather, Jain alleged, the entire process was kept under  wraps by the respondents (Noida Authority and the developer) to avoid any legal action and bring about permanent changes.”

Extra FAR of “33% had enabled respondent 4 (Omaxe) to encroach upon the common undivided open park area for the construction of an apartment tower named Riyasat, thereby reducing the exit passage below the applicable National Building Code. Extra floors and extra buildings have been added to the original sanctioned plan in the declared group housing scheme which is not permitted under law as no consent was obtained before the plans were amended,” Jain alleged.

Source - Hindustan Times

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