Mumbai, 8th April, 2018: Yes, we are all talking about how the builder who buys Serenity project from Xander Finance (or Debt Recovery Tribunal) should complete the project and give flats to the allottees. But keep in mind that the consideration value of the project will depend on the development potential of the project land. Do we know what its development potential is?
Let us first understand the contradictions in our case. According to Diipesh Bhagtani's second affidavit to Bombay High Court, Serenity project has 389 allottees.
However, Bhagtani's declaration to MahaRERA, visible on its website, says something very different. It says that Serenity project has only 86 flats and zero booked apartments i.e. zero allottees.
Nobody would accuse Bhagtani of telling the truth, and so such self-contradictions were to be expected. However, these inconsistent figures raise an inconvenient question: Does the project site of Serenity have enough land to accommodate 389 flats? Does it have sufficient FSI to enable loading of TDR for construction of the thousands of square metres carpet area for which Bhagtani collected Rs 118 crore? And if not, then how many flats can be accommodated?
The value that any builder will be willing to pay for Serenity land will depend on these facts. Assuming that a legal or commercial solution for compensating Bhagtani victims is possible, it has to be commercially viable, and that viability will depend on the development potential. The development potential has to be sufficient to enable the builder to make a decent profit after compensating Bhagtani victims with money or with flats of some size.
Do Serenity victims know what the development potential is? Unless someone has taken the initiative to hire an architect / project management consultant to find out, the probable answer is: No. Unless they organize themselves and analyze the problem methodically, the odds of recovering their lost wealth are dramatically diminished.
ISSUED IN PUBLIC INTEREST BY