HC summons developer over unpaid transit rent, warns “coercive action” if absent

Mumbai: The Bombay high court summoned developer Gokul Aggarwal of RNA Group on March 20 for defaulting on payments despite an undertaking to the court that he will continue to pay transit rent to tenants of a rehab building in Ghatkopar till an Occupancy Certificate is obtained for the project.

Justice NJ Jamdar issued the directive in connection with an interim application in a 2007 suit filed by Shantilal Amrutlal Chauhan against GA Builders, an RNA Group company, in which Gokul Aggarwal is one of the directors along with brother Anubhav Aggarwal.

“It is hereby made clear that if Gokul Aggarwal does not remain present in court in terms of the order, the court would be constrained to take appropriate coercive action,” said the one-page order dated February 28 uploaded on Thursday.

The suit was filed in 2007 alleging multiple violations in the redevelopment of Pantnagar Gangasagar Co-operative Housing Society including in the FSI granted by MHADA. The agreement for redevelopment was signed in 2006, and the construction started in 2011 and was completed in 2014, but the building has not received the Occupancy Certificate (OC).

In 2014, Aggarwal had given an undertaking to the court that he had applied for part OC of the project and that he will continue to pay transit rent to the tenants in the rehab component till OC is received.

Advocates Sulaiman Bhimani and Anuksha Shreshta for the plaintiffs told the court that the transit rent has not been paid by the developer for more than two years despite the undertaking, and accumulated dues are pending. No one appeared for GA Builders, while advocates Shreya Shah and PG Lad appeared for MHADA, and advocate Kejali Mastakar appeared for the Brihanmumbai Municipal Corporation.

While the developer has given possession to others in the 11-storey redeveloped building in Ghatkopar, the applicant had refused to take possession without OC.