11/08/2018
Updates from
SC slaps Rs 105 crore fine on Pune realtor for damaging environment.
NEW DELHI: The Supreme Court on Friday came down heavily on Pune-based real estate company Goel Ganga Developers for causing environmental damage while building residential towers in violation of law and slapped a fine of Rs 105 crore but refused to order demolition of the buildings as possession of flats had already been given to home-buyers.
A bench of justices Madan B Lokur and Deepak Gupta granted the company six months’ time to deposit the money before its registry and said all the assets of the company as well as its directors shall be attached if it failed to comply with its order.
The court said the construction done by the company was in violation of environment clearance given to the project and it had also expanded the built-up areas without permission. The company had built 738 flats and115 shops at its “Ganaga Bhagyodaya”, Amrut Ganag and Ganag Towers Project on Sinhagad Road in Pune. The construction of 69 flats and 2 Shops were at final stages. The bench noted that the approval was given to the company for construction of built up area 57,658.42 sq mtrs but it illegally expanded the built up area to 1,00,002.25 sq. mtrs in utter violation of law.
Observing that, most of the homebuyers in the project belongs to middle class family and would suffer huge monetary loss if buildings were demolished. The court said that it was left with no option but to legalise those construction.
As pointed out there are 807 flats 117 Shops which are either constructed or under construction. These flats are 1, 1.5 and 2 BHK flats and small shops and offices. The developer has already taken money from these people and a large number of flats and shops which are not occupied, have been bought by people belonging to the middle class who have invested their life’s earning in this project. Keeping in view the interest of the third parties, we are of the view that in the peculiar facts and circumstances of the case, demolition is not the answer.
The court upheld the National Green Tribunal order which had concluded that the developer had violated law and slapped the fine. It said the company shall not be allowed to build the two buildings in which it was to construct 454 flats and directed it to return the money with interest at the rate of 9% per annum to buyers.
Having held so, we are definitely of the view that the project proponent who has violated law with impunity cannot be allowed to go scot free this court has in number of cases awarded 5% of the project cost as damages. This is general law. However, in the present case we feel that damages should be higher keeping in view totally intransigent and unapologetic behavior of the developer. He has maneuvered and manipulated officials and authorities. Instated of 12 Buildings, He has constructed 18; from 552 flats the number of flats has gone upto 807 and now two more building having 454 flats are proposed.
Therefore, in the present case, we are clearly in the view that the developer should be and is directed to pay damages of rupees 100 crore or 10% of the project cost whichever is more. The developer shall also pay a sum of Rs. 5 crore as damages, in addition to the above for contravening mandatory provision of environmental law,” bench said.
Source: Times of India
