Chennai Moulivakkam 12-storey Collapsed : Experts Say
Govt. Must Pay Damages, Recover From Officials and Builder..!
With the Supreme Court sealing the fate of
Moulivakkam's infamous twin buildings, `The Faith' and `The Belief ', people
who purchased apartments in the two 12-storey structures will have to brace for
a long legal battle if they hope to recover any of their investment or receive
compensation.
`The Faith' collapsed on June 28, 2014, killing
61 people, and the Supreme Court on May 12, 2016 ordered the demolition of `The
Belief '. What is the way ahead for the flat owners?
Citing a Bombay high court ruling in a similar
case, former additional solicitor-general of India and senior advocate P Wilson
said the government must first pay compensation to the flat owners and recover
the amount from erring officials and builders.
Conceding that initiating civil proceedings to
recover the money would be a long-drawn and frustrating process for buyers,
Wilson said the government must step in and cut short the agony of the
apartment owners, most of who have invested savings of a lifetime -more so
because its officials were guilty of negligence and oversight from the beginning.
“Suppose the builder took a project loan from a
bank, then every time a sale deed for a flat is executed, buyers must have
taken consent or no objection certificates from the bank. If that had been
done, to that extent the buyer's investment would be safe,“ civil case
specialist Mr. S. Vasudevan said.
The most effective way to realise the money in a
relatively short period is to invoke the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi Act),
says Vasudevan. Because the builder had mortgaged the property to several banks
that financed it, individual flat buyers can sign private treaties with banks
authorising them to take the Sarfaesi Act route.
“The banks, on their part, must decide among
themselves and authorise one bank to take the case to Debts Recovery Tribunal
(DRT),“ he said.“Once sale is done, they can share the sale proceeds
proportionately .“
“Buyers could also find if the promoter invested
money in other projects and then jointly file a single suit to attach those
properties,“ Vasudevan said. “They can move the company court, seek
investigation and demand winding up of the building company . Once they do
this, the promoters will have to submit statements of accounts, which will
reveal their asset details.“
He said aggrieved parties in insolvency
proceedings could challenge transfer of properties within a period of two
years. “Banks and financial institutions are the real culprits, as they have
surveyors and engineers to do due diligence, but failed to follow the rules,“
Vasudevan said.
Src: A Subramani, TOI
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