The Madras High Court on Tuesday, March 12, 2024, directed Jain Housing and Constructions Limited (JHCL) to disclose all details regarding its current financial health and the properties that it had developed in the past as well as those being developed at present in various places across the country.
Justices S.S. Sundar and N. Senthilkumar passed the interim order on a writ petition related to all three 17-storey residential towers at Jains WestMinster Apartments in Saligramam, Chennai having become unsafe, within seven to eight years of construction, due to chloride erosion.
The judges wanted the builder to submit the financial details by Monday, March 23, 2024, so that they could pass further orders on the writ petition filed by Jains WestMinster Owners Welfare Association (JWOWA). Some individual flat owners too, have been impleaded as parties to the writ petition.
The builder had agreed to raze down all three towers, after the Indian Institute of Technology-Madras submitted a report stating their longevity and the safety of their occupants was under serious threat, and to redevelop the entire project by utilising the increase in Floor Space Index (FSI).
However, senior counsel A.L. Somayaji and S. Prabakaran, representing the flat owners, vehemently opposed the builder’s proposal to redevelop the project by adding a few more floors and consequently increasing the saleable area since it might affect the Undivided Share (UDS) of the existing flat owners.
They insisted that the entire project must only be rebuilt and the existing flat owners must be given back their flats after ensuring quality construction. The senior counsel wanted the builder to deposit ₹106 crore towards the rental accommodation for the existing flat owners for 42 months.
They also insisted that the builder must show the resources from which it would be able to generate another ₹275 crore required for reconstruction of the buildings. The counsel pointed out that the builder had deposited only ₹25 crore to the credit of the writ petition.
The court was further told that Madras High Court retired judges K.N. Basha, K. Kannan and M. Sathyanarayanan could be considered for appointment of a committee to ensure the existing flat owners get proper residential accommodation until the existing towers were razed down and rebuilt.
Mr. Prabakaran said, some of the flat owners had received notices from banks asking them to foreclose their home loans since the buildings were to be razed down. Therefore, the flat owners were facing numerous problems on account of the poor quality of construction that had led to chloride erosion, he said.
After hearing all sides, the Bench decided to pass further orders in the case after the builder disclosed details regarding its financial health and the projects undertaken by it.
