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.
"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.
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. MORE
