Bombay HC Orders Demolition Of Five Illegal Buildings In Kalher, Massive Payout For Defrauded Buyers

On Thursday, the Bombay High Court mandated the demolition of five illegal buildings in Kalher, near Bhiwandi, which were partially constructed on government land, according to the Hindustan Times. The court also instructed the purported landowners and the builder to collectively deposit Rs 8 crore to be distributed among the people who purchased flats in the buildings.

The division bench of Justice M.S. Sonak and Justice Kamal Khata ruled out the possibility of legalising the buildings, citing significant illegalities. The bench emphasised that the only recourse for the flat owners to recover their losses was to sue the landowners, Sharad Madhavi and Shekhar Madhvi, along with the builder, Chandrakant Kherade of Saidham Developers.

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"There can be no question about regularising such gross illegalities," the bench declared. They ordered the involved parties to deposit Rs 8 crore within two months. This amount will be distributed proportionally to the flat owners, whom the bench described as victims of "grossly illegal and fraudulent acts."

The court's decision followed a petition filed in 2019 by two locals, Sunil Madhavi and his brother Avinash Madhvi. The petition requested the demolition of the five buildings, arguing that the construction was done without permission from the Mumbai Metropolitan Region Development Authority (MMRDA), the planning authority for Kasheli and Kalher villages.

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Their counsel, advocate Amit Gharte, highlighted that the buildings were constructed mainly on government land. He pointed out that over 40,000 square feet of built-up area was constructed under the pretext of reconstructing an old house that was only 200 square feet.

Advocate Gharte further noted that the tehsildar of Bhiwandi had ordered the demolition of the illegal buildings in December 2013 after due legal process. However, the revenue authorities and the MMRDA did not act on this order. Meanwhile, Saidham Developers sold 80 flats in the buildings, creating third-party rights.

Chandrakant Kherade from Saidham Developers opposed the petition, arguing that it stemmed from a vendetta due to civil disputes between the petitioners and the purported landowners. He claimed to have obtained construction permission from the village panchayat in 2010 and argued that the construction was legal, as the unamended Section 52 of the Maharashtra Village Panchayats Act, 1959, which empowered the panchayat to approve construction plans, was in effect at that time.

The court, however, dismissed this argument, stating that the trio had "illegally and brazenly constructed five buildings in Kalher to defraud purchasers and the government." The bench noted that the permissions granted by the Kasheli panchayat were not related to these buildings and that the panchayat was not authorised to issue such permissions after March 17, 2007, when the MMRDA was appointed the planning authority for the area.

The court assigned the Thane district collector the responsibility of recovering the Rs 8 crore from the landowners and the builder. The collector is also tasked with preparing a report detailing the homeowners in the five buildings and the amounts they paid for their flats. Based on this report, the money will be distributed proportionally.

The court also clarified that the flat buyers are free to file civil suits to claim damages and compensation from the builder.