Companies

Ruai developer wins case to build shopping complex

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Justice George Odunga has issued an order restraining City Hall from interfering with Elma Limited’s building of a mall in Ruai, arguing that it had no legal standing to revoke the development plans it had already approved. PHOTO | FILE

The High Court has given a property developer the green light to continue construction of a multi-million shilling shopping mall in Ruai after quashing a Nairobi County disapproval of the building permit over an ownership dispute.

Justice George Odunga on Wednesday issued an order restraining City Hall from interfering with Elma Limited’s building of the mall, arguing that it had no legal standing to revoke the development plans it had already approved.

Mr Justice Odunga said in his judgment the case before him was to determine whether county acted lawfully in revoking the approval, and not whether the land was legally acquired.

“In these proceedings, I must however reiterate that the court is not concerned about the merits of the decision and whether or not Elma legally obtained the title to the suit land,” he said. “Accordingly this decision ought not to be construed as sanitising the title to the suit property.”

Elma had planned to build the mall and 77 town houses on the land, and said it had spent more than Sh100 million in its acquisition and planning.

The developer said it had hired more than 300 workers to commence construction before the revocation.

The judge further maintained that the county government acted against the legitimate expectation of the private developer in revoking the approval plans, as it failed to issue notices and accord Elma a hearing before arriving at its decision.

The City Hall had revoked the approval plans on grounds that the land was designated for construction of a primary school, according to its records.

Stephen Mwangi, chief officer in the department of land survey said in suit papers that the land falls under a block of public utilities which cannot be allocated to private individuals for commercial purposes, which he said was the driving factor in the revocation.

Elma’s lawyer Joshua Nyawara in his pleadings argued that his client had paid Sh28 million to the previously registered owner, Chris Nguru, and was successful in having its plans approved by the county government.

Mr Nyawara told the court that the issue had come up after the land had been bought, but that Elma had been informed by the lands department that the records had been corrected and that Mr Nguru was the rightful owner.

He added that the lands department had retracted the revocation and issued an apology to Elma when county government officers invaded the land and stopped construction in March.

This was after Elma sought clarification on the reasons for the action of the officers. He faulted the county’s grounds for revocation, arguing that only the National Land Commission, which had not raised any queries as to the ownership of the land, could revoke the title.