New Delhi: The Supreme Court on Wednesday partly allowed appeal of the City & Industrial Development Corporation of Maharashtra (CIDCO), directing it to issue a provisional “no due certificate” for ‘B’ wing of Arneja Chambers in Sector 15 of Belapur, Navi Mumbai, if the developer and two buyers deposit Rs3.50 crore as provisional additional lease premium.
Noting that it would enable the parties secure the occupancy certificate to use the premises lying unoccupied since the building’s completion in December 2008, a bench of Justices Mrs Rbanumathi, AS Bopanna and Hrishikesh Roy held that the deposit will be subject to the final decision on its refund or more payment.
The dispute had arisen since CIDCO demanded Rs14.06 crore from the developer for not meeting the scheduled deadline of completing construction on the land leased out in 2001. The Bombay High Court, however, struck down the demand on various grounds, forcing CIDCO to move the apex court.
The Supreme Court held that CIDCO will refund Rs3.50 crore to the parties if it is satisfied that the construction was completed in terms of the extension granted. However, if the developer is found to pay any additional lease premium, it would be recovered from the developer and until it attains finality, there shall be charge over the property purchased by the two respondents.
The bench also ruled if the amount held due from the developer is not paid, CIDCO will be at liberty to withdraw the “no due certificate” resulting in cancellation of the occupancy certificate.
