The Brihanmumbai Municipal Corporation (BMC) has issued stop-work notice to default builders who had taken up redevelopment projects on BMC plots. The notice was issued to 18 city builders for defaulting on a premium of around Rs 357 crore. As per the agreement, these builders were supposed to pay the money. But, neither did they pay the premium nor the 18% interest on it. The developers will get a chance to speak in their defence and if civic officials are not satisfied, the projects may be cancelled.
Under section 33(7) of the Development Control Regulations, Builders undertaking redevelopment projects on civic plots are supposed to pay a premium and even supposed to complete it within the stipulated time. If the project is delayed, developers have to pay an interest of 18 percent per annum, failing which they can be asked to stop work.
Among the 18 city developers, AA Estate Pvt. Ltd which has defaulted on Rs 14.5 crore and Vardhaman Developers Ltd for dues worth Rs 41 crore. The latter is an affiliate of RNA Corporation.
“The property in question is a leasehold land of the collector. The collector’s lease with the BMC has expired. I’m ready to pay the premium but the BMC needs to get its lease renewed. Even I want the title to be cleared. I have never refused to pay premium,” According to Rajesh Vardhan, managing director of Vardhaman Developers
A spokesperson of RNA Corporation said that they were yet to get any such notice.
“They (BMC) had issued us a show-cause notice to which we have sent a detailed response. We haven’t received any communication since then, nor have we got any stop-work notice,” the spokesperson added.