Ownership of Mhada lottery’s costliest flats in legal dispute

State Housing Board- Mhada’s December 16 lottery for 1,384 flats has been marred with a legal dispute involving its three costliest apartments averaging Rs 5 crore each. The Managing Committee of Dhavalgiri building in Grant Road, where these flats are located, has disputed Mhada’s ownership in a law suit filed in The Bombay High Court. Coupled with that are claims that the ‘owner’ owes unpaid dues averaging Rs 75 lakh to the society.

The society filed the case on December 4 and the first hearing was held December 10. Mhada’s Repair and Reconstruction (RR) Board officials were present in court.

Mhada has put three two-bedroom houses for sale in Dhavalgiri apartment building that was constructed by a private builder in 2003. Flat no 501 on the fifth floor costs Rs 5.8 crore, while two others on the third floor, namely 301 and 302, cost Rs 5.13 crore and Rs 4.99 crore respectively. No less than 136 people have put in applications.

An office bearer of the society said to TOI, “Mhada has not submitted any documents to prove ownership of these flats despite repeated reminders. A few years ago, the earlier owner reportedly sold them to one Vivek Enterprises. Then we heard that Vivek sold it to Mhada in 2013 but the society has received no documents to that effect. For us, Mhada is a trespasser on the property. So the person who buys these flats from them will also be a trespasser. We will not transfer the flats in the lottery winner’s names.” A deed of reconstitution of Vivek Enterprises, provided to TOI by Dhavalgiri society, shows that Lodha Developers is a partner in the firm.

The society members questioned how Mhada could go ahead with auction on December 16 of these apartments, knowing fully well that the matter was sub judice. Another committee member said, “Moreover, Mhada as ‘owner’ of these three flats has not paid maintenance dues to the tune of Rs 75 lakh to the society. Does it expect the winner of the auction to settle these dues?”

He pointed out that this was the reason the flats were so poorly maintained. TOI had reported that the floors were uneven, the plaster peeling, bathrooms unusable and fittings decrepit. “Nobody has stepped in to clean them in at least five years. Naturally, the houses have gone to seed,” he said.

A Mhada representative said, “Our RR Board officers attended the Court hearing December 10. We have legal possession of these flats including the agreement and documents which were produced before The High Court. The society’s main grouse is the maintenance amount which is unpaid. The RR Board said that this matter will be sorted out at our end. The next hearing is in January.”

Asked how Mhada could go ahead with the sale of flats under the upcoming lottery when the very ownership was under dispute, he said, “The society is concerned about pending dues. Those have been factored in into the price of the flat.”