Durban beachfront deal: Gayadin turns to ConCourt

2012-04-24 00:00

PIETERMARITZBURG businessman Sunny Gayadin has turned to the Constititional Court in his battle with Anant Singh for the former Durban Command site.

Giant Concerts, a company owned by Gayadin’s wife, submitted in papers to Chief Justice Mogoeng Mogoeng yesterday that the eThekwini Municipality sold the highly sought-after piece of land on the Durban beachfront in a private deal (and despite objections) for R15 million — a mere 21% of the land’s market value of R71 million.

Moreover, the sale of the land would cost the municipality more than R4 million because the SA National Defence Force offices would have to be moved at the municipality’s expense. In effect, therefore, the municipality would get just R9 million for the land.

The land was sold to film producer Singh’s Videovision, which wants to build a film studio there. Giant Concerts is prepared to pay much more for the land, also to build a film studio.

However, despite the higher offer, the municipality closed the deal with Videovision’s property section, Rinaldo Investments.

In its court papers Giant Concerts argued that the municipality made several legal errors in the sale of the land.

In the first place the deal was not transparent and public as required by the Land Act.

Second, the municipality did not take note of objections to the deal, and to higher offers for the land.

And third, the deal was approved by the MEC for local government — something only the premier was authorised to do.

Giant Concerts has asked for the Constitutional Court to declare the sale to Videovision null and void.

Mogoeng is considering the application.

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