Builder’s “calculated extortion” of amenity charges targeting tenants; residents to knock HC’s door against Ekta Tripolis

Housing rights lawyer Advocate Vinod Sampat is preparing to file a writ petition in the Bombay High Court, seeking judicial intervention to end the developer’s discriminatory practices against tenants and curb exploitative actions by builders in Mumbai.

MUMBAI, November 28, 2024: The city known for its skyscrapers and exclusive communities, tenants of the luxurious residential complex Ekta Tripolis in Goregaon West, have levelled serious accusations against Ekta Everglade Homes Private Limited, charging the developer with imposing unjustified and unlawful amenity charges solely on tenants. The tenants claim that these charges are a gross violation of their rights and termed as “calculated extortion”.

The tenants, represented by seasoned housing rights lawyer Advocate Vinod C Sampat, has issued a legal noAce to the directors of Ekta Everglade Homes Private Limited – Ashok Govindram Mohnani and Vivek Ashok Mohnani – for imposing discriminatory amenity fees solely on tenants. The notice also requests the Goregaon West Police to file an FIR under Section 329 of the Bhartiya Nyaya Sanhita, 2023, accusing the developer of trespass, intimidation, and obstructing tenants’ rights.

The tenants feel betrayed, as they have been barred from using clubhouse facilities despite paying high rents, which were based on contractual stipulations guaranteeing access to these amenities. They argue that the use of clubhouse facilities forms part of their rights as tenants, yet they remain prohibited from accessing these facilities and are being coerced into making additional payments to the builder. This, according to the tenants, is a blatant violation illegality that highlights the builder’s high-handed approach to deprive tenants of their rights.

The legal dispute centers around the builder’s decision to impose a hefty ₹50,000 plus GST as an annual clubhouse fee and ₹1,00,000 as a security deposit from tenants – charges that have reportedly been waived for homeowners. Advocate Sampat called this action “nothing short of calculated extortion,” labelling the practice as discriminatory and devoid of legal justification. “These charges are illegal and exploitative, aimed solely at tenants who, under Maharashtra law, should have the same access to amenities as homeowners without additional fees. This discriminatory practice violates the Maharashtra Ownership Flats Act (MOFA) as well as the RERA regulations, which clearly stipulate that all amenities are included in the sale and licensing agreements,” Sampat pointed out.

The developer’s actions, Advocate Sampat strongly feels that, are a targeted form of extortion that completely disregards the rights and protections guaranteed to tenants under the law and thereby, impose a double burden on tenants by charging them for services that the owners are exempt from.

According to Advocate Sampat, this selective imposition of fees on tenants alone is not only discriminatory but an outright abuse of power. “The developer’s behaviour is not only illegal but morally reprehensible. The tenants, under their agreements, are legally entitled to equal access to amenities like the clubhouse, gym, and swimming pool without additional charges,” he stressed.

Advocate Sampat plans to file a writ petition in the Bombay High Court, seeking judicial intervention to put an end to the developer’s discriminatory practices and curb such extortionate actions by builders in Mumbai. “This pattern of exploitation is punitive, deceitful, and grossly unfair,” Sampat added. He pointed out that the developer waived these charges for homeowners earlier this year after pushback but is now targeting tenants, who are often less organised and more vulnerable. “Such actions call for urgent judicial action to protect the rights of tenants and prevent further exploitation hence we will approach the Bombay High Court with a writ petition seeking judicial intervention to put an end to the developer’s discriminatory practices and curb such extortions by builders in Mumbai,” he informed.

“This pattern of exploitation is punitive, deceitful, and grossly unfair,” Advocate Sampat added, noting that the developer waived these charges for homeowners earlier this year after pushback but is now targeting tenants as a vulnerable group. “It’s a strategic move to profit by preying on tenants who are less organized and often overlooked. Such actions call for an urgent judicial response,” Advocate Sampat said.

This case has raised concerns beyond the walls of Ekta Tripolis, as housing experts warn that if left unchecked, it could set a dangerous precedent. Developers across Mumbai might exploit similar practices, imposing arbitrary charges on tenants for amenities that should legally be included in their leases. Referring to the Supreme Court’s ruling in Pioneer Urban Land and Infrastructure Ltd. vs. Union of India (2019), Advocate Sampat emphasised that the court has ruled against arbitrary fees for tenants, reinforcing the principles of transparency and fairness in housing agreements. “Allowing developers to impose separate charges on tenants while sparing owners distorts the purpose of MOFA and RERA and undermines the legal protections they afford,” Sampat explained.

Advocate Sampat urged that by allowing tenants to be treated as secondary citizens in their own homes, developers are pushing Mumbai’s housing landscape into an era of unchecked greed and inequality. “The Bombay High Court has a moral duty to set things right, ensuring that developers like Ekta Everglade Homes are held accountable for violating tenants’ rights. If the Bombay High Court fails to act, it will set a harmful precedent that developers can bypass laws designed to protect tenants. We are calling on the court to uphold justice and reaffirm that tenants are entitled to the same rights as homeowners,” he appealed.

Advocate Sampat warned that by allowing tenants to be treated as second-class citizens in their own homes, developers are pushing Mumbai’s housing landscape toward unchecked greed and inequality. “We call on the court to uphold jusAce and reaffirm that tenants are entitled to the same rights as homeowners, ensuring that developers like Ekta Everglade Homes Private Limited are held accountable for violating tenants’ rights,” he said.

The legal noAce includes a ten-day deadline for the developer to retract the charges and address tenant grievances. If Ekta Everglade Homes Private Limited fails to comply, tenants are prepared to escalate the manner through both civil and criminal proceedings, a move they hope will secure justice and serve as a strong deterrent against such practices in the future.

In a concerning development, one tenant reportedly received a call from an individual linked with the builder, whose contact was listed on Truecaller as claiming to be EOW Mumbai, which gives the impression of a police officer belonging to the Economic Offence Wing. This raises serious concerns about the misuse of authority and potential criminal behaviour, warranting an immediate investigation. Such actions constitute offences like false representation (SecAon 132), criminal intimidation (Section 326), extortion (Section 295), and cheating by personation (Section 177), all carrying penalties of imprisonment up to seven years. The misuse of authority to intimidate tenants into submission reflects a systematic abuse of power, which must be investigated immediately to ensure jusAce is served, the lawyer explained.

The court’s intervention could be a landmark moment, reinforcing tenants’ rights and seeking a lasting precedent for tenant protection and equitable treatment in Mumbai’s high-stakes real estate market.

For More Information Contact: Advocate Vinod Sampat 9987622225 | 7021919950