The Mumbai real estate market is considered to be one of the most expensive in the world and the GTC land parcel located near Mithibai College in the city's Vile Parle area is estimated to be valued at around Rs.1000 crore.
The GTC Ltd Vile Parle property case is a classic example of how real estate in prime location can create problems.
GTC has been fighting the court case against some builders, who the company claims, deliberately failed in their commitment to keep their side of the deal.
When contacted, GTC Head of Corporate Communications Neha Bhatt said, "We have kept our side of the bargain. We have faith in the judicial system and are confident that in the end, the truth will come out".
The case dates back to the year 2009, when Sheth Developers Pvt. Ltd. and Suraksha Reality Ltd signed an agreement on December 28 for the joint development of land at Ville Parle, Mumbai, with Golden Tobacco Ltd, a public limited company, was allowed to deal with property as part of BIFR rehabilitation scheme dated February 16, 2002.
As per the agreement, Sheth Developers were to pay Rs.542 crores to Golden Tobacco Ltd, but despite repeated reminders, they only paid Rs.132 crores and were not able to pay the balance till March 31, 2011, the due date of lapse of BIFR scheme.
After due date there was no legal hurdle to transfer the said land as the company was in protection of BIFR.
However, when the company took steps to revoke the M.O.U, an FIR was lodged by the builders against the company and its management, allegedly using their political links, so as to pressurise the company to transfer the land to them.
The company, on assurance of the builders, gave VRS to its employees and even stopped production at their Ville Parle factory. The default of the builders not only derailed revival plans of the company, but also, put the future of workers and investors at stake.
As per the Maharashtra Stamp Act, a detailed enquiry has reportedly been initiated to ascertain the total amount of stamp duty violation done by the builders in all of their projects across Maharashtra, so that the same can be recovered.
One of the main allegations mentioned in the FIR by the builders was that GTC, without revoking the MOU, entered into a new MOU with Arrow Engineering.
However, according to sources, no new MOU exists or had taken place.
It may also be recalled that last year i.e. on May 12, 2016, the Supreme Court declared the MOU between Sheth Developers, Suraksha Reality and GTC for joint development of land in Vile Parle as illegal. (ANI)