Urban Infra VC Fund seeks cancellation of Lodha SOBO JV project’s MahaRERA registration

The Urban Infrastructure Venture Capital Fund (UIVCF), which counts Anand Jain’s Jai Corp and Reliance Industries as core investors, has moved the Maharashtra Real Estate Regulatory Authority (MahaRERA) to cancel the registration of a joint venture project of the Lodha Group in a bid to recover its dues worth over Rs 900 crore from the project in South Mumbai’s Mahalaxmi locality.

The Urban Infrastructure Opportunities Fund (UIOF), part of the UIVCF, has filed a complaint alleging gross violations of the provisions of the Real Estate (Regulation and Development) Act, 2016 by real estate developers and partners Terraform Realty Group (the erstwhile Everest Group).

In the JV, Terraform Realty Group operates through its company Money Magnum Nest and Lodha Group through its company Macrotech Developers.

Money Magnum Nest is the owner of around 7 acres of land known as Bradbury Mills, situated next to Dagdi Chawl between Rippon Road and Haines Road in Mahalaxmi.

In 2007-08, UIVCF and other investors invested Rs 300 crore in three projects of Everest Group. Upon non-performance of these projects, the investors took the developer to arbitration in 2012-13.

All of the total five arbitrations were awarded in favour of investors in 2019 and the amount payable by the developer against the decrees awarded totals Rs 900 crore, including interest thereon.

In October 2021, Macrotech Developers entered into a pact to jointly develop this land with Money Magnum Nest, which is part of the Everest Group.

UIVCF issued a public notice with regards to this matter on Wednesday.

"The notice released in the media refers to the dispute between Urban Infrastructure Trustees Limited and the promoters of Money Magnum Nest. Macrotech Developers have entered into an arms-length transaction with Money Magnum and there is no dispute on land or title for the parcel that we intend to develop," said a Macrotech spokesperson.

Lodha is not involved in the dispute in any manner and will refrain from commenting on the dispute between the other parties as the matter is sub judice, she said, adding that the company had written to MahaRERA two weeks ago stating that there was an error in its filing for the aforementioned office project and that RERA registration should be put "on hold".

Terraform Realty declined to comment for this story, stating the matter is sub judice.

According to the fund, the promoters have not only exposed the frailties of the systems adopted by MahaRERA in granting certificates of registration but also exploited the same to get an undue advantage.

UIOF has asked MahaRERA to take immediate action in this case so that an example is set for all project promoters.