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Construction : Web Exclusive | May 2013 | Source : Construction Update

Flat owners in Mumbai fought with builder over VAT

In Mumbai's Tardeo, trouble is brewing at the Imperial, India's tallest twin 60-storey residential towers at MP Mill compound in Tardeo. For the past few months, residents have been embroiled in a legal dispute with the developer, SD Corporation (SDC), over the latter's demand for value-added tax (VAT). Some of the residents claim the developer has not given them parking slots because of the dispute.

Recently, two of the residents sent a legal notice to SDC, stating they are not liable to pay the VAT -an average Rs 40 lakh per flat -as it was not part of their sale agreement and they were not informed about it when the flats were sold in 2007. SDC, a joint venture between construction firm Shapoorji Pallonji and builder Dilip Thakker, refuted the allegations. No flat buyer has been denied possession of parking slot or flat, SDC Director Amit Thacker said.

The Imperial is home to influential individuals like Axis Bank CEO Shikha Sharma, HDFC Chairman Deepak Parekh's son, senior lawyer Satish Maneshinde and senior management executives of US private equity fund Blackstone. There are 116 flats in the two luxury towers; each flat costs an average of Rs 25 crore. In a notice sent on behalf of a resident, lawyer Javed Gaya stated that SDC should have informed his client of the liability considering they were party to a writ petition filed in September 2007 against VAT.

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