PENDING litigation has been blamed for the poor auction price bid on the controversial high-rise at 317 Currie Road at an auction on Wednesday, 26 August.
Civic action group Save Our Berea (SOB) had issued an urgent application in the Durban High Court on Monday to stop the auction of the building, however the court ruled SOB had no legal standing to stop the sale, although all bidders would be notified of pending litigation.
The highest bid on the development on Wednesday was reported to be R11 million, and it will now be up to the liquidator of developers, Serengeti Rise Industries, to decide if that offer will be accepted. Further higher offers over the next 14 days will also be considered.
When the company was initially placed in business rescue last year, the partially completed nine-storey building was estimated to be worth between R50 million and R65 million. Claims by creditors are said to amount to around R117 million.
ALSO READ: Court orders developer to return scaffolding at 317 Currie Road
Liquidator, Kurt Knoop, said there had been interest shown in the building, however he blamed the pending litigation by SOB for the low offer, allegedly stating it put buyers off.
In their application, SOB’s Cheryl Johnson and Kevin Dunkley urged the court to order that the building is demolished. This comes after a crucial report signed off in December 2015 by the City Integrity and Investigative Unit (CIIU) on alleged irregularities surrounding the development at 317 Currie Road was kept a secret by the municipality at a Supreme Court of Appeal (SCA) hearing.
At the hearing, a Durban High Court order requiring the demolition of the building was overturned. The appeal was granted in May 2017.
Serengeti Rise Industries, the developer of the building, labelled a ‘monstrosity’ by neighbours, was placed into business rescue in 2019.
READ RELATED: Civic action group moves to stop auction of controversial Durban development
Commenting on the outcome of the application, Johnson said that SOB had sufficient evidence showing fraud and corruption in the entire process, and will now proceed with their main application.
“Save Our Berea is undaunted by the outcome of the urgent application to stop the auction as we believe it’s merely a red herring. The real battle is yet to come when we challenge the municipality’s historical decision to rezone the property and approve plans for the development. We want the court to declare the municipality unlawful in its actions in withholding a report by the City Integrity and Investigative Unit which recommended that identified town planning officials be disciplined for misconduct, and we want the building to be demolished within three months.”
ALSO READ: Leaked report reveals irregularities at 317 Currie Road development
Dunkley said the failed court action over the building at 317 Currie Road had set an adverse precedent in the area.
He said the fact that the City was aware of the findings of the CIIU report, and still withheld this from the court is a huge issue, as if this report was divulged, the court ruling might have been different in this matter.
Johnson said: “SOB and Pops Aboobaker have never stopped pushing for justice and without the support of amazing lawyers working pro bono and an unknown benefactor funding costs, we could never have done it. SOB thanks everyone who supported us so far, and especially those who contributed money to the appeal case.
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