U.S. SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, D.C.   20549

                              FORM 10-QSB

(Mark One)

XX  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---  ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002

    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---  ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO ______.

                        COMMISSION FILE NUMBER 000-31143
                                               ---------

                                 GAVELLA CORP.
                              ------------------
         (Exact name of business issuer as specified in its charter)

            Delaware                             22-3742159
            --------                             ----------
     (State or other jurisdiction             (IRS Employer Identification
         of incorporation)                               number)

    215 West Main Street, Maple Shade, New Jersey   08052
    ---------------------------------------------- -------
    (Address of principal executive offices)     (Zip code)

    (856) 667-0600
    --------------
    (Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports)
and (2) has been subject to such filing requirements for the past 90 days)

Yes  XX      No
    ----         ----

The Company had 2,485,000 shares of common stock, par value $.001 per share,
outstanding as of May 10, 2002.

Transitional Small Business Disclosure Format (Check one): Yes [  ]   No [XX]


                                 -1-
<PAGE>


             GAVELLA CORP. AND SUBSIDIARY
                      INDEX
                                                                   PAGE
PART 1.   FINANCIAL INFORMATION                                   ----

      ITEM 1.   FINANCIAL STATEMENTS

                GAVELLA CORP. AND SUBSIDIARY
                ----------------------------

                CONSOLIDATED BALANCE SHEETS AS OF
                MARCH 31, 2002 AND DECEMBER 31, 2001....................3

                CONSOLIDATED STATEMENTS OF OPERATIONS FOR
                THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001..........4

                CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
                THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001........5-6

                CONSOLIDATED STATEMENT OF CHANGES IN
                STOCKHOLDERS' DEFICIT FOR THE THREE MONTHS
                ENDED MARCH 31, 2002 ...................................7

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS..............8


      ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS....................9

PART II.  OTHER INFORMATION.............................................13

               ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K...............13

      SIGNATURES........................................................14



                                 -2-
<PAGE>

<PAGE>
                      GAVELLA CORP. AND SUBSIDIARY
                       CONSOLIDATED BALANCE SHEETS
                   MARCH 31, 2002 AND DECEMBER 31, 2001
                               (Unaudited)

                                  ASSETS
                                                 March 31,       December 31,
	                                              2002            2001
                                               -----------        -----------
Rental property, net                           $ 3,136,568        $ 3,128,812
Cash                                               101,599             87,997
Cash held in escrow                                 78,204             59,241
Accounts receivable, net of
  allowance for doubtful accounts
  of $3,600 and $8,068                              24,358             24,154
Prepaid expenses                                    33,158             58,831
Deferred financing costs, net                       48,001             49,611
Investments, at equity                              34,314             32,000
                                               -----------        -----------
    Total Assets                               $ 3,456,202        $ 3,440,646
                                               ===========        ===========


                   LIABILITIES AND STOCKHOLDERS' DEFICIT


Liabilities
  Mortgage notes payable                        $3,265,688        $ 3,276,513
  Notes payable - related party                    310,000            250,000
  Accrued interest                                  22,342             22,342
  Accounts payable                                   8,417              8,207
  Accrued expenses                                  85,940             85,636
  Security deposits payable                         80,464             80,099
  Other liabilities                                  9,336             33,252
                                               -----------        -----------
     Total Liabilities                           3,782,187          3,756,049
                                               -----------        -----------

Stockholders' Deficit
 Common stock, $.001 par value,
  5,000,000 shares authorized,
  2,485,000 shares issued
  and outstanding                                    2,485              2,485
 Common stock subscribed                                25                -0-
 Additional paid in capital                        358,240            333,265
 Accumulated deficit                           (   686,735)       (  651,153)
                                               -----------        -----------
     Total stockholders' deficit               (   325,985)       (  315,403)
                                               -----------        -----------
Total Liabilities and Stockholders'
  Equity                                        $3,456,202        $ 3,440,646
                                               ===========        ===========

                                 -3-
<PAGE>
                       GAVELLA CORP. AND SUBSIDIARY
                   CONSOLIDATED STATEMENTS OF OPERATIONS
             FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
                               (Unaudited)

	                                               2002            2001
                                                 -----------      -----------
Revenues
  Rental real estate                               $ 220,820      $   210,712
                                                 -----------      -----------
    Total revenues                                   220,820          210,712

Operating expenses
  Administrative expenses                             48,601           52,072
  Utilities expense                                   41,725           43,018
  Operating and maintenance                           21,481           32,179
  Taxes and insurance                                 37,736           32,697
  Depreciation and amortization                       30,690           31,241
                                                 -----------      -----------
     Total operating expenses                        180,233          191,207
                                                 -----------      -----------

Operating income                                      40,587           19,505

Other income (expense)
  Interest income                                        220              619
  Interest expense                              (     75,453)   (      75,308)
  Equity in earnings (loss) of
   investments, net                             (        936)               0
                                                 -----------      -----------
      Total other income (expense)              (     76,169)   (      74,689)
                                                 -----------      -----------
Net loss                                        ( $   35,582)   (   $  55,184)
                                                 ===========      ===========



Basic net loss per share                        ($      .01)     ($      .03)
                                                 ===========      ===========

Average number of common shares outstanding -
  Basic                                            2,485,000        2,000,000
                                                 ===========      ===========

                                 -4-
<PAGE>

                       GAVELLA CORP. AND SUBSIDIARY
             CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
                 FOR THE THREE MONTHS ENDED MARCH 31, 2002

                                   (UNAUDITED)


<TABLE>
<S>                           <C>         <C>      <C>         <C>       <C>           <C>          <C>
                                   Common Stock         Common Stock       Additional                   Total
                                     Issued              Subscribed          Paid-in    Accumulated  Stockholders'
                                Shares     Amount    Shares     Amount       Capital      Deficit      Deficit

Balance, January 1, 2002       2,485,000   2,485            0        0   $ 333,265    $(651,153)        $(315,403)

Subscriptions for common
  stock                                0       0       50,000       25      24,975            0            25,000

Net Loss                               0       0            0        0           0     ( 35,582)         ( 35,582)
                               ---------  -------   ---------  -------   ---------    ----------    -------------
Balance, March 31, 2002        2,485,000  $ 2,485      50,000  $    25   $ 358,240     $(686,735)       $(325,985)
                               =========  =======   =========  =======   =========    ==========    =============

</TABLE>





                                    -5-
<PAGE>

<PAGE>
                       GAVELLA CORP. AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
                               (Unaudited)

	                                               2002            2001
                                                 -----------     -----------
Cash flows from operating activities:
  Net loss                                       ($   35,582)      ($ 55,184)
  Adjustments to reconcile net loss to net cash
    used in operating activities:
    Depreciation and amortization                     30,690          31,241
    Bad debt provision                                 4,668               0
    Equity in loss of investments, net                   936               0
    (Increase) decrease in:
      Accounts receivable                         (    4,672)            969
      Prepaid expenses                                25,673          29,515
      Cash held in escrow                         (   18,963)      (  34,991)
     Increase (decrease) in:
      Accounts payable                                   210          10,595
      Accrued interest                                   -0-       (  18,750)
      Accrued expenses                                   304             876
      Other liabilities                           (   23,916)      (   2,390)
      Security deposits payable                          365       (     175)
                                                 -----------     -----------
Net cash used in operating activities             (   20,487)      (  38,294)
                                                 -----------     -----------
Cash flows from investing activities:
  Purchases of property and equipment           (      6,836)     (      901)
  Purchases of investments                      (      3,250)            -0-
                                                 -----------     -----------
Net cash used in investing activities           (     10,086)     (      901)
                                                 -----------     -----------
Cash flows from financing activities:
  Repayment of mortgage notes payable           (     10,825)    (     9,968)
  Repayment of note payable                     (     10,000)              0
  Proceeds from notes payable                         40,000          42,500
  Common stock subscribed                             25,000             -0-
                                                 -----------     -----------
Net cash provided by financing activities             44,175          32,532
                                                 -----------     -----------
Increase (decrease) in cash                           13,602     (     6,663)

Cash, beginning                                       87,997          91,310
                                                 -----------     -----------
Cash, ending                                      $  101,599       $  84,647
                                                 ===========     ===========





                                 -6-
<PAGE>

                       GAVELLA CORP. AND SUBSIDIARY
            CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
             FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001

                             (UNAUDITED)

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                                           	    2002           2001

 Cash paid for interest                           $ 75,453       $ 94,058
                                	              ========       ========

 Non-cash investing and financing activities:

    Purchase of property and equipment            $ 36,836       $     901

    Debt incurred                                 $(30,000)      $     -0-
                                        		  --------       ---------
    Cash paid for purchases of property
      and equipment                               $  6,386       $     901
                                                  ========       =========















                                    -7-
<PAGE>

<PAGE>
GAVELLA CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2002 AND 2001

(UNAUDITED)
Note 1 - Organization

Gavella Corp. ("Gavella" or the "Company") was incorporated on June 21, 2000
in the State of Delaware as a wholly owned subsidiary of Apta Holdings, Inc.
("Apta").  On August 7, 2000,  APTA transferred all of the assets and
liabilities of its 100% wholly owned subsidiary, Spring Village Holdings,
Inc. to Gavella in exchange for 2,000,000 shares of $.001 par value Gavella
common stock.  Spring Village Holdings, Inc. owns an 80% controlling interest
in SVG Properties, L.P., a New Jersey limited partnership (the
"Partnership").  The Partnership owns a 124 unit apartment complex.  On
December 27, 2000, each shareholder of Apta received one share of Gavella for
each share of Apta owned by the shareholders of record as of December 1,
2000.

Note 2 - Summary of Significant Accounting Policies

     The summary of significant accounting policies is included in the notes
to the consolidated financial statements for the years ended December 31, 2001
and 2000, which were audited and appear in the Form 10-KSB previously filed by
the Company.

Note 3 - Unaudited Financial Statements

     The consolidated balance sheets as of March 31, 2002 and the related
consolidated statements of operations and deficit, and cash flows for the three
months ended March 31, 2002 and 2001, and the related information contained in
these notes have been prepared by management without audit.  In the opinion of
management, all accruals (consisting of normal recurring accruals), which are
necessary for a fair presentation of financial position and results of
operations for such periods, have been made.  Results for an interim period
should not be considered as indicative of results for a full year.

Note 4 - Stockholders' Equity

     On May 30, 2001, the authorized shares of common stock of the Company
were increased from 3,000,000 shares to 5,000,000 shares.

Stock Based Compensation

     The Company adopted a Stock Option and Stock Issuance Plan on May 30,
2001, which provides for, among other incentives, the granting to officers,
directors, employees and consultants options to purchase shares of the
Company's common stock.

     Options are generally exercisable at the fair market value on the date
of grant exercisable over a five year period.

     During the three months ended March 31, 2002 and 2001, 250,000 options to
purchase common stock were granted to two officers of the Company with exercise
prices of $.35 and $.30, respectively.  The exercise prices represent at least
110% of the fair market values on the date of grant.  No options were
exercised.


                                    -8-
<PAGE>
<PAGE>
ITEM 2.     MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The following discussion and analysis should be read in conjunction with the
Consolidated Financial Statements and Notes thereto appearing elsewhere in
this Form 10-QSB and in the previously filed Form 10-KSB for the period
ending December 31, 2001.

General
-------

Gavella Corp. ("Gavella" or the "Company") was incorporated on June 21, 2000
in the State of Delaware as a wholly owned subsidiary of Apta Holdings, Inc.
("Apta").  On August 7, 2000,  APTA transferred all of the assets and
liabilities of its 100% wholly owned subsidiary, Spring Village Holdings,
Inc. to Gavella in exchange for 2,000,000 shares of $.001 par value Gavella
common stock.  Spring Village Holdings, Inc. owns an 80% controlling interest
in SVG Properties, L.P., a New Jersey limited partnership (the
"Partnership").  The Partnership owns a 124 unit apartment complex.  On
December 27, 2000, each shareholder of Apta received one share of Gavella for
each share of Apta owned by the shareholders of record as of December 1,
2000.

The following discussion of the business of the Company includes the business
of Spring Village Holdings, Inc.

The Company is currently engaged in one line of business; owning and
operating income producing real estate.

The consolidated financial statements include the accounts of Gavella Corp.
and its wholly owned subsidiary, Spring Village Holdings, Inc. Spring Village
Holdings, Inc. is the sole general partner of SVG Properties, L.P.  and
completely controls the partnership.  Accordingly, the accounts of Spring
Village Holdings, Inc. include its 80% partnership interest in SVG
Properties, L.P. (T/A Spring Village Apartments). All significant
intercompany transactions and accounts have been eliminated.

For financial reporting purposes, the assets, liabilities, results of
operations and cash flows of the partnership are included in the Company's
consolidated financial statements.  The outside investors' limited
partnership interests have been reflected as minority interests.

The Company has had a history of losses and as of March 31, 2002 reported an
accumulated deficit of $686,735.  The Company projects breakeven cash flow
from operations in the fiscal year 2002.  There can be no assurance that the
Company will be successful in its efforts to generate sufficient cash flow to
meet its scheduled debt service or other cash requirements.

The Company has no plans to acquire additional single family or multi-family
residential properties in the foreseeable future.  The Company does not
currently have any specific plans for acquisitions, and no potential
acquisitions are currently under review. The Company is currently focused on
using its cash flow from operations, if any, to reduce debt, with the
remainder being reinvested in its existing property.

                                    -9-
<PAGE>
<PAGE>
The Company also intends to utilize its contacts, business expertise and
knowledge of the securities markets to identify and invest in small,
established private companies with well defined growth plans. Gavella may
also assist such companies by utilizing various strategies to maximize their
long term value.  These strategies may include preparing the Company to
become a public company, assisting with mergers and acquisitions, and
facilitating additional capital raising activities.  In order to enhance
Gavella's shareholder value, Gavella intends to liquidate its interest in
such companies over time. There is no assurance that such companies can be
identified or once identified, that any investments made in such companies
will prove to be profitable.

On September 30, 2001, the Company invested $25,000 in DataNet Office
Solutions, Inc. in exchange for 500,000 shares of common stock.  On March 31,
2002, Gavella Corp. owned approximately 14% of DataNet Office Solutions, Inc.
DataNet Office Solutions, Inc. is in the business of providing office
supplies, printing, print management, ad specialties and a number of related
services.  The investment in DataNet will be accounted for using the equity
method of accounting.  Accordingly, Gavella's proportionate share of
DataNet's net profit or loss subsequent to September 30, 2001 will be
reflected in Gavella's financial statements.  DataNet reported a net profit
of $15,432 for the three months ending March 31, 2002.

On October 31, 2001, the Company invested $3,750 in Eastern Envelopes &
Graphics, Inc. ("Eastern").  The Company invested an additional $3,250 in
2002.  Eastern is in the business of commercial printing, primarily
envelopes.  Eastern is a development stage enterprise and reported a loss of
$48,986 for the three months ended March 31, 2002.  Gavella owned 20% of
Eastern on March 31, 2002.  The investment in Eastern will be accounted for
using the equity method of accounting.

Results of Operations
----------------------

The following discussion is for the three months ended March 31, 2002 and
2001, respectively.

The Company reported total revenues of $220,820 and $210,712 in 2002 and
2001, respectively, an increase of $10,108 or 4.8%.  Occupancy was
approximately 96% and 95%, respectively. A small increase in the average unit
rental rate and the improved occupancy rate resulted in the increase in
rental revenue.

Total operating expenses decreased from $191,207 in 2001 to $180,223 in 2002,
a decrease of $10,984 or 6%.

Administrative expenses decreased to $48,601 in 2002 from $52,072 in 2001.
Utilities decreased by $1,293 as a result of a significant decrease in the
price of natural gas, which was partially offset by rising water and sewer
costs.  Operating and maintenance expense decreased from $32,179 in 2001 to
$21,481 in 2002, primarily due to a cutback in the use of outside
subcontractors.  Taxes and insurance increased by $5,039, from $32,697 in
2001 to $37,736 in 2002, primarily due to increases in real estate taxes.
Depreciation decreased by $551 to $30,690 in 2002.  Operating income
increased from $19,505 in 2001 to $40,587 in 2002, primarily due to the
increase in revenue and the decreases in total expenses discussed above.

                                    -10-
<PAGE>
<PAGE>
Net interest expense increased by $544 from $74,689 in 2001 to $75,233 in
2002.

Equity in earnings (loss) of investments, net, is summarized below:

                                   Gavella's proportionate share of
                                   net income or (loss) under the
                                   equity method of accounting
       Entity                          2002             2001
       ------                      --------------------------------

DATANET Office Solutions, Inc.         2,314              0
Eastern Envelopes & Graphics LLC      (3,250)             0
                                     -------          -------
Net earnings from
  equity investments (loss)           (  936)             0

Net loss decreased from ($55,184) in 2001 to ($35,582) in 2002.  Basic net
loss per share decreased from ($.03) in 2001 to ($.01) in 2002.

The Company is taxed as a C-corporation for federal and state income tax
purposes.  As such, the Company will pay taxes on its net income as defined
by the Internal Revenue Code.  No tax attributes of the Company flow through
to the shareholders except for the regular taxation of dividends paid, if
any.

Liquidity and Capital Resources
--------------------------------

At March 31, 2002, the Company had a $18,849 deficit in working capital,
including cash held in escrow for anticipated future expenses.  The Company
needs additional financing to expand its business, to carry out its business
plan and to reduce debt.

On January 1, 2002, the Company had $87,997 in cash, exclusive of $59,241 in
cash held in escrow accounts.

During the three months ended March 31, 2002, the Company received proceeds
of $40,000 from installment notes payable during the period.  The Company
received $25,000 from common stock subscriptions.  Operations used $20,487.
The Company used $6,836 to purchase property and equipment, and reduced
mortgage debt by $10,825, and other notes payable by $10,000. The Company
made an investment in another company of $3,250.   The net increase in cash
for the period was $13,602.  The Company had $101,599 in cash on March 31,
2002, exclusive of $78,204 in cash held in escrow accounts.

The Company projects break even cash flow from operations in the fiscal year
2002.  The Company believes it has sufficient cash on hand to fund its
operations for the next twelve months.  However,  there can be no assurance
that the Company will be successful in its efforts to generate sufficient
cash flow to meet its scheduled debt service or other cash requirements.




                                    -11-
<PAGE>

<PAGE>
The Company's balance sheet is highly leveraged.  The Company plans to reduce
this leverage through future equity offerings as well as by funds generated
from operations.  The Company  believes it can support operations and planned
capital expenditures for at least twelve months.  Thereafter, the Company's
continued success will be dependant upon its ability to maintain occupancy at
93% or above and to keep operating costs under control.

In the event that the Company's plans change or its assumptions change or
prove to be inaccurate, the Company may be required to seek additional
financing sooner than currently anticipated.  The Company has not identified
any potential sources of debt or equity financing and there can be no
assurance that the Company will be able to obtain additional financing if and
when needed or that, if available, financing will be on terms acceptable to
the Company.

Forward Looking Statements
---------------------------

The Company is making this statement in order to satisfy the "safe harbor"
provisions contained in the Private Securities Litigation Reform Act of 1995.

The foregoing discussion includes forward-looking statements relating to the
business of the Company.  Forward-looking statements contained herein or in
other statements made by the Company are made based on management's
expectations and beliefs concerning future events impacting the Company and
are subject to uncertainties and factors relating to the Company's operations
and business environment, all of which are difficult to predict and many of
which are beyond the control of the Company, that could cause actual results
of the Company to differ materially from those matters expressed in or
implied  by forward-looking statements.  The Company believes that the
following  factors, among others, could affect its future performance and
cause actual  results of the Company to differ materially from those
expressed in or implied by forward-looking statements made by or on behalf of
the Company:  (a) the effect of changes in interest rates; (b) the rental
rate and demand for apartment rental units; (c) fluctuations in the costs to
operate the properties owned by the Company; (d) uninsurable risks; (e)
unexpected losses, and (f) general economic conditions.


                                    -12-
PART II

OTHER INFORMATION
------------------


ITEM 1    LEGAL PROCEEDINGS

NONE


ITEM 2    CHANGES IN SECURITIES

NONE


ITEM 3    DEFAULTS ON SENIOR SECURITIES

NONE


ITEM 4    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

NONE

ITEM 5    OTHER INFORMATION

     The Company has been approved by the NASD for quotation on the NASD OTC
Bulletin Board under the symbol GVLA. As of May 10, 2002, the Company's
common stock has been thinly traded at a price range between $.25 and $.95
per share.

ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits

         None

     (b) Reports on Form 8-K

         None




                                    -13-
<PAGE>
                                 SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.


                            GAVELLA CORP.


Dated: May 14, 2002         /s/ Harry J. Santoro
                            ----------------------------------------
                            Harry J. Santoro
                            President, Chief Executive Officer and
                            Principal Financial Officer



















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