Campa Cola Case: How residents will be duped twice

The Campa Cola case is a true eye opener for home buyers and co-operative housing societies and would make them vigilant while purchasing their dream flat

Campa Cola Society in Worli area of Mumbai has become a glaring example about residents getting duped twice over, due to lacunae in the laws and their oversight. What is shocking is that 96 flat owners from seven high-rise buildings could be homeless over the next few days, while the lessee and builder benefit from the destruction of these flats.

First, the builder constructed extra floors even though he had permission only for six floors. He then sold these ‘illegal’ flats to buyers. However, Brihanmumbai Municipal Corporation's (BMC), the civic body, never gave the occupation certificate to the builderand to buyers. In addition, since the builder constructed illegal floors, it never handed over the land of the plot to the Society (deemed conveyance) as mandated under the laws. Since the Supreme Court had ordered demolition of 35 illegal flats, these families would be homeless. Also, they cannot even claim any rights on the property.

According to a report from Times of India, the lone beneficiary of the demolition will be the unscrupulous builders or the new builder, who can approach the civic body with freshbuilding plans for the extra floor space index (FSI) available in the Campa Cola Compound.

“After demolishing 35 illegal flats across seven buildings in the society, the developer can construct on 6,200sqm of FSI and sell new flats. The plot measuring a total of 18,049 sq m is not sub-divided and still shows as a single plan under the BMC,” the reports says.

FACTS

         Permissible built up area                                              17,356 sq mt

         Area beyond permissible FSI limits                            1,774 sq mt 

         Area that Supreme Court ordered demolished       7,916 sq mt   

The apartments in the Campa Cola Compound were constructed on land leased in 1955 to Pure Drinks Ltd. Pure Drinks was later allowed by the BMC in 1980 to build residential apartments. Seven high-rise buildings were constructed at the compound between 1981 and 1989 by developers Yusuf Patel, PSB Constructions and BK Gupta.

Illegal floors of Midtown Apartments, Esha Ekta Apartments, Shubh Apartments, Patel Apartments (two buildings, six floors each), BY Apartments and Orchid Apartmentscomprise 140 flats. While the builders were granted permission for ground-plus-five floors, Midtown has 20 floors, Orchid has 17, Esha Ekta has eight, Shubh has seven while BY and Patel have six floors each.

As per the records of BMC, since Pure Drinks is the lessee of the land, it can therefore, claim the right to development of this FSI.

This also means that the lessee and developers who built illegal floors would benefit from the demolition, but it would be a double whammy to flat buyers. In addition, so far, while the buyers are being punished for buying flats in illegally constructed floors, there is no punishment to the lessee, builders and developers. Even the officials of BMC, who failed to stop the construction of these illegal have so far remained scot free.

However, this case will prove to be an eye opener for home buyers and co-operative housing societies for two reasons. One, they must make sure that the building in which they are buying flat has all legal permissions in place and second, the plot of land is transferred to the housing society. The conveyance of land would make sure that in case of re-development, the FSI and right to develop remains with people who had paid the money for buying home.

BRIEF CASE SUMMARY of CAMPA COLA COMPOUND

•           In 1955, the BMC leased 17905 sq.mt of land in Worli, Mumbai to Pure Drinks Ltd for the Coca Cola factory. In 1980 the BMC permitted Pure Drinks to convert a large part of the land (13049 sq.mt.) into a residential plot. However, the land is not sub-divided.

•           Pure Drinks joined hands with PSB construction, Yusuf Patel and BK Gupta to build nine 5-story buildings. Later the builders amended the plans to construct two towers and five smaller buildings of 6 to 8- stories. These plans were not approved, but the builders continued to construct and were fined by the BMC. The builders paid the fines but refused to pay the revised penalty that the BMC imposed later. The builders eventually built 1,774 sq mt more than the permitted 17,355 sq.mt.

•           By 1989, the builders had sold the flats and given possession, concealing the fact that the plans were not sanctioned and that there were FSI violations. Individual building societies started forming in 1991. However the builders did not convey the land and buildings to the buyers, nor did they provide the Occupation Certificates to the flat owners. As a result the BMC did not supply water to the buildings.

•           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 DC ’91.The application was 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 beyond permitted FSI was 1,774 sq mt., and the buildings were within CRZ 2 zone.

•           In 2005 the association went to court for a water connection and regularisation. The Court reprimanded the municipal commissioner for his inaction and instructed him to take time bound action.  Instead of initiating any action against the builders, he promptly issued 96 demolition notices to the flats above the 5th floor, since they were beyond the sanctioned plans. These notices amounted to demolition of app 8000 sq mt area was far greater than the actual violation area.

•           The demolition notices were challenged in the City Civil Court, which granted a stay.

            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 build. The BMC rejected their plans as the plot was not subdivided and the FSI violation on the residential plot had not been resolved.

•           Krishna Developers, as an affected party, intervened in the litigation in the City Civil Court, 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 sq mt and to regularise 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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