Business tycoon Nusli Wadia has dragged G L Raheja and kin, Sandeep G Raheja and Sonali G Raheja, and Ferrani Hotels belonging to the GL Raheja Group to the Bombay high court.
The dispute is about violating the agreement between Wadia and the Rahejas on developing nearly 478 acres in Malad in the western suburb of Mumbai.
Wadia has filed a suit in the Bombay High Court and demanded that Rahejas should demolish the buildings, inlcuding Palm Spring Centre, and Unique Commercial Complex, among others, on the said land and demanded damages of Rs 1,370 crore from the GL Raheja Group.
The land is owned by the late Eduljee Framroze Dinshaw and Wadia is the sole administrator.
The agreement required the developer to sell or lease the land or any structure built by him on it only to genuine third parties, thereby generating returns of 12 per cent to Wadia.
It was alleged that the GL Raheja Group had sold or leased the properties to their own sister concerns and shell companies created for the purposes of purchase of these properties and Wadias received lesser returns due to that.
Wadia has revoked the agreement with Ferrani Hotels of the GL Raheja Group dated January 2, 1995, with effect from May 12, 2008, and also two power of attorney agreements executed by him in favour of Sandeep G Raheja and Sonali G Raheja for the purpose of developing the land.
Wadia has mentioned 45 group companies of G L Raheja in the suit against them.
Interestingly, Wadia has already moved the Bombay high court against G L Raheja's brother C L Raheja and his sons Ravi C Raheja and Neel C Raheja and nephews Rahul S Raheja and Ashish S Raheja for violating the agreement between him and the Rahejas on developing nearly 200 acres in Malad.
In that suit also, it was alleged that the CL Raheja group had sold or leased properties to their own sister concerns and shell companies created for the purposes of purchase of these properties. Wadia demanded damages worth Rs 350 crore (Rs 3.5 billion) from them. The case in pending in the high court and expected to come up for hearing on June 25.
K Raheja Constructions and K Raheja Hospitality, promoted by the GL Raheja group, has completed nearly 2,000 projects in the country in residential, commercial and industrial sectors.
K Raheja Construction officials were not available for comments.
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