HC lifts stay on ACB probe into Hiranandani project
Allowing the probe against Additional Chief Secretary, Health T C Benjamin and developer Niranjan Hiranandani to proceed, Bombay High Court on Tuesday vacated an interim stay granted on an order directing the Anti-Corruption Bureau (ACB) to investigate allegations against the two in an alleged real estate scam.
Benjamin, former principal secretary in the Urban Development Department (UDD), is accused of not taking action against Hiranandani who allegedly built luxury flats in Powai in breach of a tripartite agreement between the builder, the state government and MMRDA.
A special court had ordered an investigation against Benjamin following a complaint by activist Santosh Daundkar who alleged that Benjamin had recommended that Hiranandani should be directed to pay a fine of only Rs 3 crore.
However, sources familiar with the case said that the UDD had earlier fixed the penalty on Hiranandani at Rs 89 crore. Subsequently, an arbitrator was appointed who reduced the penalty to Rs 3 crore. The state government has contested the reduced award of penalty on Hiranandani in the high court.
Reacting to the court’s decision, Benjamin said: “The state government is going to file an affidavit justifying its decision to impose the fine of Rs 89 crore on Hiranandani. The decision taken by me was in all transparency.”
In his appeal, Benjamin stated that there were no allegations of financial misappropriation against him. The court has adjourned the case for further hearing till October 5.
The Anti-Corruption Bureau (ACB) registered an FIR against Benjamin and Hiranandani on July 5. On July 10, the bureaucrat moved the high court, which stayed the order of the special court and restrained the ACB from carrying out further investigation into Daundkar’s private complaint.
On Tuesday, Benjamin’s petition seeking the quashing of the private complaint was heard by a bench of Justices A S Oka and Sadhana Jadhav. His lawyer Satish Borulkar urged the court to extend the stay granted on the subordinate court’s order.
The judges, however, observed, “By granting ad interim relief, the writ court cannot interfere with the process of investigation. Hence, we decline to continue the ad interim relief granted earlier.”
Daundkar’s complaint, filed through lawyer Y P Singh, stated that in 1977, the state had announced the Powai Housing Development Scheme for economically weaker sections (EWS) that was to be implemented over 140 hectares in the villages of Powai, Kopri and Tirandaz. In 1986, the state signed an agreement with Hiranandani, and handed over 230 acres.
“However, the developer had flouted the tripartite agreement with the state and MMRDA which allowed him to develop 230 acres in Powai and construct affordable houses and hand over part to the state,” Daundkar alleged.
Daundkar pointed out that an ACB inquiry in 2009 revealed that only 76,120 sq m of the 5.74 lakh sq m of the built-up area sanctioned by the government was used by Hiranandani for low-cost housing, while the rest was converted into luxury apartments of 2,000 to 5,000 sq ft.
COURTESY:
Express news service : Fri Sep 28 2012, 01:09 hrs
http://www.indianexpress.com/news/hc-lifts-stay-on-acb-probe-into-hiranandani-project/1008978/0
Allowing the probe against Additional Chief Secretary, Health T C Benjamin and developer Niranjan Hiranandani to proceed, Bombay High Court on Tuesday vacated an interim stay granted on an order directing the Anti-Corruption Bureau (ACB) to investigate allegations against the two in an alleged real estate scam.
Benjamin, former principal secretary in the Urban Development Department (UDD), is accused of not taking action against Hiranandani who allegedly built luxury flats in Powai in breach of a tripartite agreement between the builder, the state government and MMRDA.
A special court had ordered an investigation against Benjamin following a complaint by activist Santosh Daundkar who alleged that Benjamin had recommended that Hiranandani should be directed to pay a fine of only Rs 3 crore.
However, sources familiar with the case said that the UDD had earlier fixed the penalty on Hiranandani at Rs 89 crore. Subsequently, an arbitrator was appointed who reduced the penalty to Rs 3 crore. The state government has contested the reduced award of penalty on Hiranandani in the high court.
Reacting to the court’s decision, Benjamin said: “The state government is going to file an affidavit justifying its decision to impose the fine of Rs 89 crore on Hiranandani. The decision taken by me was in all transparency.”
In his appeal, Benjamin stated that there were no allegations of financial misappropriation against him. The court has adjourned the case for further hearing till October 5.
The Anti-Corruption Bureau (ACB) registered an FIR against Benjamin and Hiranandani on July 5. On July 10, the bureaucrat moved the high court, which stayed the order of the special court and restrained the ACB from carrying out further investigation into Daundkar’s private complaint.
On Tuesday, Benjamin’s petition seeking the quashing of the private complaint was heard by a bench of Justices A S Oka and Sadhana Jadhav. His lawyer Satish Borulkar urged the court to extend the stay granted on the subordinate court’s order.
The judges, however, observed, “By granting ad interim relief, the writ court cannot interfere with the process of investigation. Hence, we decline to continue the ad interim relief granted earlier.”
Daundkar’s complaint, filed through lawyer Y P Singh, stated that in 1977, the state had announced the Powai Housing Development Scheme for economically weaker sections (EWS) that was to be implemented over 140 hectares in the villages of Powai, Kopri and Tirandaz. In 1986, the state signed an agreement with Hiranandani, and handed over 230 acres.
“However, the developer had flouted the tripartite agreement with the state and MMRDA which allowed him to develop 230 acres in Powai and construct affordable houses and hand over part to the state,” Daundkar alleged.
Daundkar pointed out that an ACB inquiry in 2009 revealed that only 76,120 sq m of the 5.74 lakh sq m of the built-up area sanctioned by the government was used by Hiranandani for low-cost housing, while the rest was converted into luxury apartments of 2,000 to 5,000 sq ft.
COURTESY:
Express news service : Fri Sep 28 2012, 01:09 hrs
http://www.indianexpress.com/news/hc-lifts-stay-on-acb-probe-into-hiranandani-project/1008978/0
BUILDERS LIKE HIRANANDANI ARE FLUSHED WITH FUNDS SUCH TYPE OF INQUIRIES WILL HARDLY EFFECT THE HEALTH OF THE COMPANY UNTILL THE TOTAL ACTIVITY OF THE ACCUSED IS STOPPED BY THE COURT TILL THE RECOVERY / INQUIRY IS COMPLETE BECAUSE NO MATTER WHAT THE HONBLE COURT ORDERS ULTIMATELY ITS THE AUTHORITY WHO IS HAND IN GLOVES WITH SUCH TYPE OF BUSINESS HOUSE.
ReplyDeleteA BIG QUESTION ARISES WHAT WHERE THE SANCTIONING AND REGISTERING AUTHORITIES DOING WHEN THE SCAM WAS BEEN DONE, WHY DID THE BMC ALLOW AMALGAMATION OF TWO FLATS ??? BMC SHOULD IMMIDIATELY DEMOLISH THE AMALGAMATED FLATS WHICH HAS BEEN DONE WITHOUT PERMISSION AND IF BMC GAVE PERMISSIONS THEN ON WHAT TERMS EVEN AFTER KNOWING THE PROJECT HAS BEEN GIVEN FOR THE LOW COST HOUSING WHAT WAS THE REASON GIVEN BY THE FLAT OWNER FOR SUCH AMALGAMATION ??? ALL THE CONCERNED OFFICERS AND THE BUILDER SHOULD BE IMMIDIATELY ARRESTED FOR CHEATING , BCOS THE DOCUMENTS MUST HAVE FORGED OR ALTERED WHICH ATTRACTS NON BAILABLE OFFENCE UNDER IPC