Show Cause Notices For Termination Issued To HDIL: Slum Rehabilitation Authority To Court
Logos of PMC Bank and HDIL seen at Dreams Mall in Bhandup, Mumbai. (Photographer: Benny Antony/BloombergQuint)

Show Cause Notices For Termination Issued To HDIL: Slum Rehabilitation Authority To Court


The Slum Rehabilitation Authority on Tuesday told the Bombay High Court it has issued show cause notices to Housing Development Infrastructure Ltd. to terminate agreements pertaining to 24 slum rehabilitation schemes in Bandra Kurla Complex in the metropolis.

Advocate General Ashutosh Kumbhakoni, appearing for SRA, told a division bench of Justices SC Dharmadhikari and RI Chagla that the realty group, whose promoters are facing criminal charges in the Punjab and Maharashtra Cooperative bank scam, was not in a position to carry out work on the projects.

He told the court proceedings under the Insolvency and Bankruptcy Code had been initiated against HDIL and an Insolvency Resolution Professional has been appointed by the National Company Law Tribunal.

"In majority of the slum rehabilitation projects, either work has not begun or has not been completed beyond one or two per cent. Therefore, we have issued show cause notices for termination," Kumbhakoni said.

The court was hearing a petition filed by 32 residents of Bharat Nagar in Bandra, where a major slum rehabilitation project had been undertaken by HDIL. The petitioners said they were declared eligible for rehabilitation under the scheme and had vacated their respective structures between 2006 and 2008.

Also read: PMC Bank’s Depositors Or HDIL’s Homebuyers: Who Is Likely To Win?

The petitioners claimed they initially received transit rent from HDIL but later it stopped paying the amount and also failed to complete the work. They further claimed SRA officials did not take any action against HDIL despite repeated complaints, reminders and representations since April 2018.

The petitioners sought a direction from the court for expeditious completion of the project and allotment of permanent accommodation to them.

As an interim measure, the petitioners have sought a direction to SRA to either provide the residents with alternative accommodation till the completion of the project or pay them transit rent of Rs 17,500 per month, with a 10 percent increase in the amount annually.

The bench has posted the petition for further hearing on Feb.11.

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