Builder files suit against Shapoorji Pallonji Co

Mumbai: In fresh trouble for Shapoorji Pallonji real estate company, a civil suit seeking Rs 105 crore damage has been filed against it by a private builder for non-completion of construction of a building in central Mumbai.

Crescent Builders have approached the Bombay High Court seeking damages from the company run by Pallonji Shapoorji Mistry, father of Tata Group chairman designate Cyrus Mistry, alleging that the company failed to complete redevelopment of a property within the designated time period.

According to the petition, Crescent Builders were appointed as developer by the Janata Nagar housing society for redevelopment of a property at Tardeo in south Mumbai.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

“In January 1997, a memorandum of understanding (MoU) was signed between Crescent and Shapoorji Pallonji to carry out the development work as a contractor for Crescent. As per the agreement, Shapoorji Pallonji was to complete the rehab buildings first and then the saleable building within a period of 18 months from the date of receipt of Commencement Certificate from the Brihanmumbai Municipal Corporation (BMC),” the petition states.

[caption id=“attachment_315405” align=“alignleft” width=“380” caption=“Crescent Builders have approached the Bombay High Court seeking damages from the company run by Pallonji Shapoorji Mistry, father of Tata Group chairman designate Cyrus Mistry.AP”]  [/caption]

Impact Shorts

More Shorts

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

As Trump weaponises tariff, Fed sees a bigger worry: Not jobs, but rising prices in America

In 2003, the Shapoorji Pallonji group completed the rehab buildings which were handed over to the civic body following which in January 2006, commencement certificate (CC) was issued.

“In 2007, Crescent sought additional FSI from the corporation. However in June 2009, the civic body refused to grant additional FSI on the ground that the saleable building was not constructed within the stipulated period of two years from grant of CC,” the petition states.

It further said since the building was not completed within the said period, the additional municipal commissioner directed payment of 90 percent of the capitalised value of over Rs 16 crore along with 15 percent interest.

“The corporation held that the request for grant of additional FSI of 0.5 will be considered only after completion of 19 floors and issuance of Part Occupation Certificate,” the petition states.

In October and November 2009, Crescent wrote letters toShapoorji Pallonji asking them to complete the exterior andinterior work of 19 floors of the building so that Part OC canbe obtained. When no reply was received, Crescentterminated its agreement of 1997 with Pallonji group in 2011.

Crescent builders, in their petition while seekingdamages of Rs 105 crore from Shapoorji Pallonji, have statedthat because of the company it has suffered on its reputationand was directed to pay money to the civic body.

PTI