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BMC and Pratibha haggle over Rs 2-cr
Dhaval Desai
August 4: Over a year after demolishing the top eight unauthorised floors of Pratibha building, on the posh Bhulabhai Desai Road in south Mumbai, the Brihanmumbai Municipal Corporation (BMC) is now caught between the devil and the deep sea. While the corporation has already paid about Rs 2 crore to the contractors Ghanekar Construction Private Limited following a bitter court battle, the BMC is now all set to move the court once again against the Pratibha Co-operative Housing Society Limited for recovering the amount. The BMC has paid Rs 1,96,18,944.65 (inclusive of 15 per cent interest) to the company, following the directions of former Chief Justice of India, Justice Y V Chandrachud, on July 22, 1995. A notice was then served upon the society on November 10, 1995, to deposit the amount with the BMC. The society had assured that the money would be paid within three months, but failed to do so. The administration has now circulated an item marked ``urgent business'', seeking the sanction of the Standing Committee to sue the society for the recovery of the amount along with 15 per cent interest from November 10, 1995. The item is likely to be discussed in the committee meeting on Wednesday. The episode dates back to 1984, when the BMC ordered the demolition of the 29th to 36th floors of the society's Saidale building as their construction had used extra Floor Space Index. The appeals and writ petitions filed against the order by the society and flat owners with the state government and the Mumbai High Court were dismissed. However, when the society failed to demolish the illegal floors, the BMC decided to do so on its own, under the provisions of the Maharashtra Regional and Town Planning Act. Accordingly, the contract was awarded to Ghankar Construction Company in July 1988, at a cost of Rs 62,13,766, and the floors were supposed to demolished within a year. The demolition began on December 17, 1988 but was abruptly stopped from July 31, 1989 to September 16, 1989, following a stay by the state government. An injunction order of the Bombay HC further stopped the demolition from January 15, 1990 to January 30, 1990. In the intervening period, the six-and-a-half floors were demolished. As the final hearing and disposal of the petition, which had by now reached the SC was uncertain, the BMC decided to foreclose the contract and the company was informed on April 19, 1991 to vacate the premises. When the SC ordered the demolition of the remaining floors on May 9, 1991, the contractor claimed compensation for the idle period and escalation in cost. The dispute was thence referred to Justice Chandrachud. Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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