DB Realty project in property row

Property developer DB Realty's Rs 3,000-crore premium residential project Orchid Heights is caught in a legal tangle over the ownership of a four-acre plot in Mumbai's Mahalaxmi area.

Advocates of Byram R Jeejeebhoy alleged the Mahalaxmi plot was illegally let out to DB Realty. The company has countered it, saying it had leasehold rights and did not violate any law.

DB Realty, in a public notice issued today, countered Jeejeebhoy's notice saying it was “false and misleading and issued on account of ulterior motives of blackmail.”

DB Realty is selling apartments at a base price of around Rs 25,000 per square feet in the project, which has two towers of 69 floors each. Each flat costs around Rs 8.5 crore. Property consultants say the project has total sale value of over Rs 3,000 crore. The project is scheduled to be completed by January 2014.

In a legal notice on July 7, and a subsequent public notice on August 19, Jeejeebhoy said he was entitled to the property and that he had terminated the tenancy rights of Mumbai-based Jeecee Corporation on the plot of land, since Jeecee had illegally sub-let the property to Neelkamal Sumer Realtors Tower, a unit of DB Realty group.

Byram R Jeejeebhoy and his advocates could not be reached for comments. A DB Realty executive said the issue was insignificant and unlikely to have any impact on the project.

DB Realty said the land was leased by Rustam Byramji Jeejeebhoy to Rippon Manufacturing Company for a period of 999 years in 1900. In 1905, Rippon had sub-leased it to Essaji Tajbhoy for 999 years. In 1914, Rippon surrendered the leasehold rights to original owner Jeejeebhoy and Tajbhoy had become the direct lessee of Jeejeebhoy for the remainder of the 999 years. DB Realty said as of now, the lease holds true.

“The leasehold rights of Essaju Tajbhoy were lawfully assigned to different parties from time to time. Finally, the leasehold rights have been legally vested on us. All the leasehold rights in respect of the property are vested on us for a residue period of 999 years,” DB Realty said.