HBS seeks Rs 1,600 cr from society in Mumbai which called off deal

Worli’s Shiv Shahi housing society terminated the redevelopment agreement of HBS Realtors for failing to execute the redevelopment project. After which, the builder has sought Rs 1,600 crore from the housing society. Last month, according to the report, 192 members of Shiv Shahi society chose to appoint Oberoi Realty after the previous builder, HBS Realtors, left them high and dry. HBS Realtors (Wondervalue Realty) stated that the termination of its development deal was “illegal” and made a counterclaim of Rs 1,600 crore in the ongoing arbitration tribunal case filed by the developer against the society. Wondervalue Realty’s counterclaim said that the illegal termination of the development agreements by the respondent (society) has led to the claimant (developer) not being able to complete the redevelopment project. If the project had been proceeded with and if the claimant had been allowed to finish the construction according to the development agreements, the claimant would have gained profit from the stated project. The claimant alleges damages by way of loss on future profits of Rs 863 crore. In 2009, the society, located on a prime three-acre plot, had signed the deal with Wondervalue. In 2014, 12 buildings were brought down. However, in 2019, the builder did not pay the rents (displacement hardship allowance) of Rs 70,000 to Rs 80,000 a month, leaving the families in the lurch. Earlier this year, the society approached Oberoi Realty to take over the project, to which Oberoi Realty agreed. Wondervalue, justifying its counterclaim, stated that over the years, it had spent Rs 747 crore on the redevelopment project, and it would lose Rs 863 crore on future profits. Image Source Also read: India, ADB ink $484 mn loan to improve road infra in Tamil Nadu