The construction of a 39-storey residential tower in Charkop, Kandivali West, has been stayed by the Mumbai Suburban Collector over alleged outstanding government revenue of ₹62 crore linked to the leasehold land. The decision has affected around 105 homebuyers who have booked flats in the under-construction Rock Highland tower. More than 500 existing residents living in 11 buildings on the same plot have also been caught up in the dispute.
₹62 crore dues behind the action
The five-acre plot in Kandivali was originally leased to Akhand Shivar Patil in 1957 for 999 years for agricultural use. Following his death, permission was subsequently granted for non-agricultural use after payment of a portion of the unearned income due to the government. According to the authorities, however, development was carried out over a larger 7.4-acre government-owned parcel.
The Ravi Group, acting as power of attorney holder, developed the Rock Enclave project comprising 11 buildings on the land. Construction of the 39-storey Rock Highland tower was also underway.
The Suburban Collector had directed the developer to pay approximately ₹62 crore towards lease-related dues. The amount includes lease dues and interest, along with other charges connected to regularisation of encroachment on around 2.4 acres of land.
Construction to remain halted
Suburban Collector Saurabh Katiyar has ordered that construction of the new tower should not resume until the outstanding amount is paid. The dispute reportedly came to light after complainant Reji Abraham brought the alleged loss of government revenue to the collector's attention. The issue subsequently remained pending with the state government for several years.
Developer challenges the order
The developer has disputed the demand and the stay order. Ravi Group's Jayesh Shah has claimed that the ₹62 crore demand is not applicable because the required unearned income had already been paid. He also alleged that the stay was imposed following pressure from an RTI activist. The developer has challenged the collector's action in court.
The dispute could now have implications not only for the 105 prospective buyers of the new tower but also for hundreds of existing residents, with questions being raised over the ownership and lease status of the land.
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