Imagine waiting 14 years for your building to be redeveloped, only to find out the developer isn't delivering as promised. That's the situation with the Khernagar Adarsh Co-operative Housing Society and Huges Real Estate Developers.
The Khernagar Adarsh Co-operative Society wanted to redevelop their building. They signed a deal with Huges Real Estate Developers back in 2011. But, after years of waiting and changes in plans, the society decided to switch developers, leading to a legal battle.
Initial Agreement: In 2011, the Khernagar Adarsh Co-operative Society and Huges Real Estate Developers signed a contract to redevelop the building. But things didn't move fast enough.
Revised Offers: Over the years, Huges Real Estate Developers offered new plans, increasing the apartment sizes and financial compensations. The society seemed to agree but later changed its mind.
Termination and Tender: In January 2023, the Khernagar Adarsh Co-operative Society ended Huges' contract and chose a new developer, Kumar Vibes LLP.
Court's Decision: The court, led by Chief Justice Alok Aradhe and Judge Sandeep V. Marne, decided not to stop the redevelopment. They noted the building was in bad shape and needed urgent attention.
No Stopping the Switch: Huges Real Estate Developers wanted the court to stop the Khernagar Adarsh Co-operative Society from switching developers. But the court said no, as there was no clear contract with the new terms.
Financial Security: The court ordered the Khernagar Adarsh Co-operative Society to deposit ₹5 crores to cover Huges' expenses and some interest, protecting Huges' financial interests while allowing the redevelopment to proceed.
No NOC Needed: Initially, the new developer needed Huges' No Objection Certificate (NOC) to start work. The court removed this requirement, ensuring the project wouldn't be delayed.
The Khernagar Adarsh Co-operative Society can now move forward with the new developer, but Huges Real Estate Developers still have a chance to claim damages if they win the main lawsuit. Meanwhile, the residents might finally see their new homes soon, after years of waiting.
This case highlights the complexities of redevelopment projects and the importance of clear agreements and timely execution.
This judgment is a reminder of how crucial it is for both societies and developers to have clear, enforceable contracts to avoid long legal battles and ensure timely redevelopment.
