Mumbai: Another housing scam, involving 11,500 homes, hangs fire in high court

Around 11500 flat buyers have found themselves bang in the middle of a massive housing complex scam involving a single developer The buyers have now approached the Bombay High Court as their complaints and FIRs with state authorities have yielded no action Notably the developer employed Bollywood celebrities as brand ambassadors to lure lower middleclass buyers This case involves forged documents and plans to build buyer trust The high court has scheduled the next hearing for September 12In a criminal writ petition filed under Article 226 of the Constitution petitioners nineteen in total along with numerous other flat purchasers primarily from the lower middle class have been ensnared in purchasing flats within projects by Ms Karrm Infrastructure Pvt Ltd and its directorsLeakage inside the flat of whistleblower Prabhuram Giri in Karrm ResidencyThese projects include Karrm Residency at Dhasai village in Shahapur Karrm Panchtatva at Kasagaon in Shahpur and Karrm Brahmaand at Kelwe Road in PalgharThe projects in detailKarrm Residency This project comprises four sectors with a total of 3140 flats Although the project was set for completion by December 2014 numerous amenities remain incomplete even todayKarrm Panchtatva Phase 1 2 and 3 at Kasgaon Shahpur District Phase one structures have not progressed beyond the plinth level while phases 2 and 3 are barren landPrabhuram Giri the whistleblower and sole resident in the entire complex and Vivekanand Dhavse another flat buyer and whistleblowerKarrm Brahmaand Affordable Homes This project in Kelve Road Palghar was meant to encompass over 5000 flats and shops Despite nearly 4500 flatsunits being sold construction has not yet commenced8 petitioners from ShahpurAmong the eight petitioners from the Shahpur project Prabhuram Giri 60 also the whistleblower and petitioner no 1 resides in the Nirbhay building Karrm Residency Sector 3 Shahapur He purchased one BHK flat on the fourth floor flat no 401 on July 25 2013 for Rs 1635 lakhSwati Dhavse is another petitioner from the same project sector 3 She secured the flat no 101 in Building Aarju C wing by entering an agreement on April 3 2012 for R855 lakh having paid the entire considerationThe boundary wall on the agricultural plot at Karrm ResidencyRajendera Chavan 56 petitioner no 5 booked flat no 2 of Aachal building B wing on March 9 2017 for R30 lakh with a partial consideration of R3 lakh paid He is yet to get possession of the housePossession pendingNagina Singh a 54yearold school assistant teacher from Bhandup petitioner no 4 bought flat no 301 in Vaayu B wing on April 16 2012 for Rs 1186 lakh with a bank loan and currently ongoing EMIs However shersquos still awaiting possession of the flatPump room below the overhead water tank constructed by the developer right main security cabin at Karrm ResidencyThe sale agreement between the developer and flat purchasers petitioners 1 to 8 contained vital documents like the nonagriculture NA certificate advocateissued title clearance and necessary permissions This underscores the accusedrsquos apparent commitment to fulfil promised amenities and ensure a peaceful handoverTip of the icebergGiri and fellow petitioners revealed that in the case of Karrm Residency Sector 3 the construction quality was deplorable rendering the entire structure dilapidated and the promised amenities absent The construction abruptly halted in 2018 leaving the site unfinished The lack of essential facilities such as an approach road street lights sewage treatment plants water connections and even lifts underscore the incomplete state of the projectGiri exclaimed ldquoAnother flat buyer received a letter from the developer dated January 29 2014 to pay interest to the developer for infrastructure maintenance water meter electricity etcrdquo This revelation was deeply unsettlingIrregularities uncoveredGiri delved into the legitimacy of permissions granted and unearthed alarming revelations The nonagriculture NA certificate linked to the sale agreement purportedly from 2011 is fraudulent Recent data indicates that parts of the land used for Karrm Residency are still agricultural landMoreover the completion certificate for the project issued on February 29 2016 and July 25 2017 by Dhasai Gram Panchayat is invalidated Girirsquos inquiries revealed that the certificate was cancelled in July 2017 due to resolution no 523Giri pursued this under the Right to Information RTI Act and learned that only the collector town planning authorities had the authority to issue completion certificates CC and occupation certificates OC Dhasai Gram Panchayat lacked this power rendering the CC and OC issued to Karrm Residency invalidConcerns intensifyNotably parts of the complex including a 60foot upper water tank and sections of the project were constructed on agricultural plots calims the petition The projectrsquos authenticity is questioned with flat buyers fearing the dispossession of their investmentsArchitectural abandonmentArchitectural inspection revealed incomplete construction absence of water supply and metres lack of electricity supply and metres deficient sewage treatment incomplete elevatorlift installation and missing street lightsIn essence the projectrsquos integrity is compromised leaving flat buyers grappling with incomplete amenities and the spectre of dislocationCOVID lockdownVivekanand Dhavse 61 a businessman residing in Dombivli West purchased a flat at Karrm Residency Shahpur for his wife Swati He recounted ldquoWe pursued the developer before the COVID19 lockdown but excuses followed Postlockdown seeking help from district officials and police led to cold responsesrdquoDhavse shared an incident where a senior police officer rebuked him for inquiring about the FIRrsquos progress Instead of addressing the developerrsquos whereabouts the officer offered tea to a suspect named in the FIR Dhavse emphasised that thousands of lowermiddleclass flat buyers are victims of a massive housing scam worth thousands of crores and continue their fight for justice in a state plagued by such deceitLegal insightsSenior Criminal Advocate Niteen Pradhan represented the petitioners in the high court who was assited by Advocate Ameeta Kuttikrishnan Kuttikrishnan revealed ldquoMost buyers are lower middle class often from the service sector Many took home loans from banks only to discover later that the developer took loans in their names from multiple institutions Even those who repaid loans are receiving recovery notices from other banks This merits a serious police and state investigationrdquoThe HC recently heard the case and directed all respondents to submit status reports The order dated June 15 stated that officers familiar with the cases should appear on the next date with investigation records The next hearing is scheduled for September 128No of petitioners from Shahpur3No of projects that were underway