Real estate major DLF Ltd has received a major setback for violating floor area ratio (FAR) norms to launch “The Crest” on a land that reportedly belongs to the Park Place Residents projects.
In a major incidence in Indian realty market, the High Court of Punjab and Haryana has ordered top most realty developer, DLF to hand over 11 acres of land to the Park Place Residence. The hearing was made after the residence of Park Place put the case to the court alleging DLF for violating the floor area ratio (FAR) norms along with intruding on the land that belonged to the Park Place. DLF was reportedly convicted of using these 11 acres of land to develop another luxury property – ‘The Crest’ project.
The judgement was made by a bench comprising Chief Justice SJ Vazifdar and justice Tejinder Singh Dhindsa on December 2. The bench said,
“DLF Park Place shall be entitled to the exclusive use of 30 acres of land inclusive of and adjoining the 19 acres mentioned in the Deed of Declaration with the clarification that the same does not constitute DLF Park Place into a separate group housing complex/scheme.”
The overall value of the land that DLF is supposed to return is estimated at around Rs 600-700 crore. However, the project ‘The Crest’ is in a developmental stage. According to president, DLF Park Place Residents Welfare Association, Mr. Harsh Sehgal, the Park Place residence will be benefitted by 65% more land, which would put a positive impact on the these apartments.
On the contrary, DLF is in the argument that ‘The Crest’ project has been launched on a separate non-contiguous land of 8.82 acre. In a sequential event started from May 2013, the Punjab and Haryana High Court had already restrained DLF from selling and marketing properties of The Crest project. Interestingly, the Supreme Court of India had ordered a stay on the proceedings in the High Court in In June 2013. Lately, in August 2015, SC vacated its earlier stay order and directed the High Court to further proceed with the hearing of the petition originally made in 2013.
According to the sources, DLF is taking the orders of the hearing made by the High Court on a legal prospective and has asked for some time study and respond.