A local civil court has rejected a plea for a temporary injunction filed by the original developer of Silver Coin Apartment Association (Part-1) in Paldi, paving the way for redevelopment of the 35-year-old building.
In an order dated December 1, the court dismissed developer Rupali Engineer’s application seeking to stall the redevelopment and restrain the society from considering a new proposal from G.B. Builders.
The dispute centres on the developer’s claim over additional Floor Space Index (FSI) and terrace rights. The plaintiff argued that a 1983 agreement reserved the right to install advertising hoardings on the terrace and to use future FSI for constructing additional flats. While expressing no objection to redevelopment, the developer insisted that any new structure should match the original building in size and number of flats to protect these claimed rights.
The apartment association pointed out that a previous suit filed by the developer seeking similar relief had been dismissed for default on September 18, 2023. It further argued that the claimed rights over FSI and terrace space are void under the Gujarat Ownership of Flats Act, 1973 (GOFA), which does not permit a developer to retain such rights once flats are constructed and allotted.
Invoking Section 41A of GOFA, the association stated that redevelopment is permissible with the consent of at least 75 per cent of members for buildings over 25 years old or declared dilapidated or unsafe. As the flats were constructed in 1983, the project qualifies under this provision.
The court held that the developer failed to establish a prima facie case or any legal entitlement to an injunction. Observing that the building is old and dilapidated, the court noted that halting redevelopment would pose risks to life and property. It ruled that any financial loss the developer may suffer, if FSI or terrace rights are established at a later stage, can be compensated monetarily, whereas the potential harm to residents from delaying redevelopment would be far greater.