The Wadhawan group’s property company Housing Development Infrastructure Ltd. (HDIL) has sued a Mumbai-based property developer, Evershine Developers seeking compensation for transfer of development rights on a parcel of land and non-payment of dues to the bank.

HDIL is seeking as much as Rs 160 crore of payment from Evershine as damages and has sought cancellation of earlier agreements. HDIL has also made Enigma Rustomjee, a unit of Rustomjee Estate, another Mumbai-based developer, which bought the development rights from Evershine with a higher floor space index (FSI) as a party to the dispute.

Slowing property transactions and lack of opportunities are now bringing squabbles among property developers to the fore. Last week, Laxey Partners complained to Alternate Investment Market (AIM) exchange on Hiranandi group’s move to merge two projects of the family with the exchange listed fund.

HDIL’s case against Evershine pertains to transaction concluded in 2005. HDIL’s subsidiary Palghar Land Development Corporation (PLDC) sold development rights of 8,93,501 square metres (95,60,460.7 square feet) of land in Narangi village of Vasai taluka in Thane district to Evershine Developers, for around Rs 100 crore. PLDC mortgaged a part of the land with Syndicate bank for Rs 90 crore. It was agreed that Evershine would pay Rs 46 crore to the bank as part of consideration to PLDC, and in turn, bank would give the development rights to Evershine.

In a public notice issued by the advocates of HDIL today claimed that Evershine had agreed to sell the FSI in excess of what was granted to Evershine by PLDC by a development agreement in 2005. HDIL’s advocates said that when they demanded for additional consideration, Evershine denied its liability to pay to their clients for the excess FSI utilised by them.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end higher led by rate sensitives - New rules to seize property of corrupt babus - BSES gets Rs 5,000-cr IDBI Bank loan to pay dues - Reliance MediaWorks Q3 net loss at Rs 151 cr - Investor wealth grows by Rs 10 lakh cr in 2012 rally

Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  High Growth Business Opportunities in Africa - Register to explore -  Save over Rs.3000 with IndianOil Citibank Card -  We live for our family. have you secured them? -  Financial Learning now made easier and more convenient. -  India's No. 1 Property Site. Click here to know more.. -  Get 5% cashback on telephone bills with Citi -  Enjoy the journey as much as the destination. click to know more.. -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Be part of it The World's Largest Aircraft. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Office 365 for professionals and small businesses. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -  Win a Business Class Ticket to Europe..Know more.. -   Introduce a New Automotive Luxury Car.. know more -  Health is Wealth..... Insurance + Savings... Know More...