The Wadhawan group’s property company Housing Development Infrastructure Ltd. (HDIL) has sued a Mumbai-based property developer, Evershine Developers seeking compensation for transfer of development rights on a parcel of land and non-payment of dues to the bank.
HDIL is seeking as much as Rs 160 crore of payment from Evershine as damages and has sought cancellation of earlier agreements. HDIL has also made Enigma Rustomjee, a unit of Rustomjee Estate, another Mumbai-based developer, which bought the development rights from Evershine with a higher floor space index (FSI) as a party to the dispute.
Sarang Wadhawan, managing director of HDIL refused to comment on the case saying the matter was sub-judice. Ramachandra Ludhani, promoter of Evershine Developers said his lawyers were in the process of preparing a reply. A Rustomjee executive said they were also in the process of drafting a notice.
Slowing property transactions and lack of opportunities are now bringing squabbles among property developers to the fore. Last week, Laxey Partners complained to Alternate Investment Market (AIM) exchange on Hiranandi group’s move to merge two projects of the family with the exchange listed fund.
HDIL’s case against Evershine pertains to transaction concluded in 2005. HDIL’s subsidiary Palghar Land Development Corporation (PLDC) sold development rights of 8,93,501 square metres (95,60,460.7 square feet) of land in Narangi village of Vasai taluka in Thane district to Evershine Developers, for around Rs 100 crore. PLDC mortgaged a part of the land with Syndicate bank for Rs 90 crore. It was agreed that Evershine would pay Rs 46 crore to the bank as part of consideration to PLDC, and in turn, bank would give the development rights to Evershine.
In a public notice issued by the advocates of HDIL today claimed that Evershine had agreed to sell the FSI in excess of what was granted to Evershine by PLDC by a development agreement in 2005. HDIL’s advocates said that when they demanded for additional consideration, Evershine denied its liability to pay to their clients for the excess FSI utilised by them.
