How to make more money in Real Estate

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Coca Cola case compound


•           The BMC leased 17905 of land in Worli, Mumbai to Pure Drinks Ltd for the Coca Cola factory,in 1955. BMC then later on permitted Pure Drinks to convert a huge part of the land into a residential quarter in 1980. However, the land was not sub-divided which was meant to be.


•         By joining hands with PSB construction, BK Gupta and Yusuf Patel, Pure Drinks was all set to build nine 5-story building. Soon the builders made tweaks to the plans to construct five smaller buildings andtwo towers of 6 to 8 - floors. These plans were not approved by the concerned authorities, but the builders continued to develop it anyway and were eventually fined by the BMC. The builders were forced to pay for their doings but refused the new revised levied fine on them BMC. The builders were permittedto build 17,355 sq.mtand went far ahead by 1,774 square meters.


•           By 1989, the builders had given possession and sold the flats, keeping away the fact that the plans were not sanctioned and were a violation FSI code. In 1991, individual building societies started forming. However the builders did not provide the Occupation Certificates to the flat owners which resulted in the BMC not supplying them with water.


•           In 2002, when the Campa Cola Association applied to the BMC to get the objected plans of the buildings sanctioned in accordance with the newly introduced rules the application was first hand  rejected as construction was commenced in 1981. In 2010, the then chief minister, Ashok Chavan also rejected the appeal on the same grounds, stating that the violation was of the extra 1,774 sqand the buildings was within CRZ 2 zone.


•           In 2005 the association went to court for a regularizationand water connection. The Court reprimanded the municipal commissioner for his wrong doings and order to take action against them.  He promptly issued 96 demolition notices to the flats above the 5th floor of the towers,instead of initiating any action against the builders since they were beyond the sanctioned plans. These notices added up to demolition of approx 8000 sqmt area which was far more than the actual violated area. 

•           The City Civil Courtgranted a staywhen demolition notices were challenged in it. In 2007, Pure Drinks Ltd. sold the development rights for the remaining industrial plot to M/s Krishna Developers Pvt. Ltd, who approached the BMC for permission to develop. The BMC rejected these plans as FSI violation on the residential plot had not been resolvedand theplot was not subdivided.


•           Krishna Developersintervened in the litigation in the City Civil Court as an affected party, who evicted the stay in 2010. The members also lost the case in the High Court in 2011 and finally, lost the battle in February 2013 in the Supreme Court.


•           The court ordered the BMC to expedite the action on the notices and directed the state govt. and corporation employees not to interfere in the execution of these notices. On 27th April, the BMC issued Notice No 488 asking the residents to vacate as the demolition would commence after 48 hours. The High Court rejected their appeal for a stay against these notices, but the Supreme Court gave them a five month reprieve, provided they gave an undertaking to vacate their flats.


•           The residents went back to the Supreme Court on 11 September 2013 requesting permission to approach the BMC to self-demolish 1774.10 sqmt and to regularize the rest of the structures which is beyond the permissible limits as mentioned in the chief minister’s order. The SC granted their prayer. However BMC rejected their formal application.


•           A writ filed in High Court was also dismissed, and on 1 October 2013, Supreme Court also dismissed the write. However, the Supreme Court extended the eviction date to 11 November 2013.


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