Mumbai: Five years on, Clan City buyers seek relief

Residents protesting at the Clan City, earlier known as Hexcity. There are over 1,700 flat buyers left in the lurch. File pic

Over 1,700 homebuyers have been left in the lurch with a Chembur-based builder abandoning an affordable housing project in Taloja. In March, yet another promise to give possession by the developer, M/s Supreme Construction and Developer Pvt Ltd, will fall flat. The tall buildings in Clan City have been lying desolate since 2017.

Most of the flat buyers have paid 90 to 100 per cent of the cost before 2017. Some availed bank loans, a few mortgaged their jewellery, while some used their retirement funds and savings. The project was earlier called ‘Hexcity' affordable housing project.

Among the homebuyers is Jiwat Manglani, 60, a Chembur resident who used his savings to pay a consideration of Rs 26.75 lakh for a 2BHK flat of 580 sqft. He had booked the place in 2010. The developer also charged Rs 5 lakh as development and was demanding additional parking charges of Rs 5 lakh and escalation cost of Rs 7 lakh, which he did not pay.

Through the flat, Manglani wanted to ensure the financial security of his differently abled 32-year-old daughter and wife, in case of his demise. "My daughter is differently abled. My wife and I have taken care of her all our life. The flat in Clan City would have brought some financial security through rent. Instead I lost my savings. The developer duped me," said Manglani, a retired cab driver. His two other children are settled abroad.

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According to Manglani, the project was to be completed in 2014. "The developer began the work only in 2013. He also prepared an agreement completely in his favour and levied other charges costing Rs 16.5 lakh. Some of the other buyers had no option but to sign it and register their flats. Flats that were supposed to cost Rs 26.5 lakh, finally cost Rs 48 lakh after including other costs, stamp duty, registration and two years' advance maintenance charges."

Forced to stay on rent

Mofazzal Azam, died of a massive heart attack aged 69 years on January 5. He was a retired BARC scientist and resided with his family on rent in Kharghar. "My husband was under tremendous stress as the project was stuck and he was disturbed. He was spending a large chunk of money on rent. We pay Rs 23,500 per month for a 2BHK. Post his retirement, he routinely visited the site and developer's office, only to return dejected and worried," said Rahat Azam, Mofazzal's wife.

"We had booked a 2BHK flat measuring 652 sqft carpet area for a consideration of Rs 31 lakh. The developer demanded another Rs 8 lakh towards escalation cost and Rs 5 lakh for parking, which was not agreeable and my husband wrote a letter to them in 2017 raising his concern. I do not want to continue with the project, and already a case has been filed against the developer before the MahaRERA," said Rahat, who takes home tuitions to support her daughter's education.

Cases against builder

According to Manglani, over 112 complaints by flat buyers against the builder are pending since 2018 in consumer court. An equal number of cases is pending before the MahaRERA.

The flat buyers recently tried to register a police complaint at Chembur police station. "But the police refused to entertain our complaint," Manglani said. "One flat buyer got his refund through MahaRERA. He is now fighting for his interest component. We are hopeful that MahaRERA will give us justice," Manglani added.

Manglani claimed that the developer sold the project at a rate of Rs 2,500- Rs 3,000 per sqft in 2010, but by 2017, some well-known developers were quoting higher prices for their upcoming projects in the vicinity of Clan City. Today, the property rate is over R7,500-R8,000 per sqft. "It seems the developer might have stalled the project to make extra money but failed in the process," Manglani said. Clan City was conceived around 2010 and possession was promised in December 2017.

‘Govt must step up'

Advocate Godfrey Pimenta, who is representing some of the buyers in MahaRERA, demanded a forensic investigation of the developer's finances. "It is sad that even though nine towers have been built, flat buyers are yet to see a ray of hope. Since this is an affordable housing project, the state government should intervene. The government cannot be a mute spectator," said Pimenta.

He added, "The government of India has introduced several schemes such as SWAMIH Fund for stalled projects. Even the state government has issued a Gazette Notification for a stalled project at Vikhroli for completion of the rehab component of the project. However, in the present case, if the state government and authorities don't come to buyers' rescue, it will be disastrous for them."

112
No. of buyers who have approached MahaRERA