Maradu Flats Case: Supreme Court Lifts Attachment Of Properties Of Jain Housing, Except Land In Chillavannoor

The Supreme Court has directed lifting of attachment in respect of properties and bank account of Jain Housing Ltd, its sister concerns and Directors of the companies, except for land in Chillavanoor. The Court clarified that the attachments of the lands in Chillavanoor, Ernakulam will continue and the applicant, Jain Housing is restrained from dealing with the same in any manner. The Bench has also granted liberty to applicant to approach RERA Authorities for registration of other projects naturally to be considered by RERA independently in accordance to law. The order was passed by a division Bench Justice Navin Sinha and Justice Ramasubramanian, observing that Jain Housing, in pursuance of Court's previous order has deposited 6.12 crores as the first instalment and assured that remaining amount will be positively deposited in stipulated period. The Bench was hearing an application in connection with Maradu flats Demolition case, whereby it had directed one of the four builders: Jain Housing to deposit portion of compensation amount due to owners in 2 equal installation within 4 months. Senior Advocate Siddhartha Dave and Advocate A. Karthik represented the appellant Jain Housing before the Court. The Bench noted submissions of Amicus Curiae Gaurav Agrawal, Senior Counsel Sidhartha Dave for applicant, and Ms Meenakshi Arora for concerned home buyers, Senior Advocate R. Venkataramani, for the State of Kerala and other counsels. The Bench observed that in pursuance previous order Jain housing has deposited 6.12 crores as the first instalment and Mr Dave has submitted that balance amount will be positively deposited in stipulated period. He submitted that application be allowed, the attachment be lifted and RETA be directed to register fresh projects of applicant Jain Housing. The Bench noted submissions of amicus that apart from 6.12 crores deposited under order dated 24/2/2021, an amount of 1.5 crores has been deposed earlier by Jain Housing. 'Mr Agrawal, was the amount 1.5 or 2 crores' Bench asked the Amicus. The amicus informed that 2 crores was deposited, 50 lakhs was given to State as administrative expenses, so 1.5 is left with the committee which is in fixed deposits. The Bench stated that 1.5 crores is available out of an earlier deposit of 3 crores, as 50 lakhs has been paid by the Committee to the State government for expenses. " The total amount so deposited may be disbursed pro rata to flat holders and agreement holders of Jain Housing, which will be 47% of their dues." the Bench observed. The Bench therefore direct that amount 6.12 + 1.50 crores lying in deposit to the account of Jain housing be disbursed on pro rata basis to Flat owners & agreement holders of jain housing. "In view of the unequivocal commitment reiterated today to comply with the earlier order for depositing the balance amount within the stipulated time, we lift the attachments in respect of the properties and bank accounts of the applicant and its sister concerns and Directors of the companies." the Bench said. Senior Advocate Meenakshi Arora appearing for the home buyers concerned submitted before the Court, that the interest factor has been troubling them quite a bit. She requested the Court to record that issue of interest as raised by them will be considered in July, so she would at least be able to move an application before the court. " You move it. We are not going to say anything" the Bench said. "It's already before the Court. Its been pending since 2019." Ms Arora said "Ms Arora, if you remember I had said this on earlier occasions , that this litigation will continue before this Court for another 30 years, if we don't start narrowing down. So let us proceed slowly. Get your money back. The interest will be there, the Court hasn't shut you out at the moment. " the Bench remarked. The Court has also allowed Jain Housing's request to approach the High Court with its prayer seeking quashing of criminal proceedings. The direction was issued after Senior Counsel Dave requested the Court to permit him to withdraw prayer (c) of the application (seeking quashing of criminal proceedings) to seek remedies before the High Court. Supreme Court of India had on 24th Feb, while directing Jain Housing Ltd to deposit a portion of compensation amount due to owners( Rs 12.26 crores), had stated that it will consider Jain Housing's request for permission to dispose of one of its properties after it deposits the first instalment. The Apex Court, in May 2019 had ordered to remove all the structures which were built in violation of Coastal Regulatory Zone Regulations within the prohibited area of CRZ Category in Maradu Municipality of Ernakulam District in Kerala. The bench comprising Justice Arun Mishra and Justice Navin Sinha observed that the construction activities in the notified CRZ areas can be permitted only in...

Maradu Flats Case: Supreme Court Lifts Attachment Of Properties Of Jain Housing, Except Land In Chillavannoor

Srishti Ojha

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