BMC Redevelopment Scam : BMC yet to recover ` 628 crore from builders

MUMBAI: The Brihanmumbai Municipal Corporation (BMC) is yet to recover Rs628.03 crore as premium from builders who took up redevelopment of civic properties.

By the end of 2012, the civic body had sanctioned 104 proposals for redevelopment of civic properties. From this, the BMC is expected to earn a revenue of Rs1,036.15 crore. However, so far, the civic body has received only Rs408.11 crore.

The premium payment is done in several stages. Twenty per cent of the amount is to be paid while getting the letter of intent sanctioned from the BMC, and 60 per cent while getting the commencement certificate. The remaining amount is to be paid before getting the occupation certificate.

The premium contributes to a major part of the civic body’s revenue. “Recovery of premium is a constant and ongoing process. We would recover the remaining amount from developers in due course of time,” said a civic official from the BMC’s estates department on condition of anonymity as he is not authorised to speak to the media.

Meanwhile, the civic body is in the process of framing policies that would add to its revenue. A month ago, the BMC formulated a policy under which developers will have to pay an additional 25 per cent of the land value, as stated in the ready reckoner, to carry out slum redevelopment on civic land.
Courtesy:
    5 Jan 2013
    Hindustan Times (Mumbai)
    HT Correspondent
    htmetro@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.aspx

Road Scam of BMC: Civic body agrees to face CID probe

A CAG report had revealed that the roadwork contracts, which were originally worth Rs 1,160 crore, were increased to Rs 1,863 crore without inviting fresh tenders

The ruling Shiv Sena-BJP alliance in the BMC has agreed to face a CID inquiry after the latest Comptroller and Auditor General (CAG) reported that highlighted cost variations and discrepancies in the contracts that were awarded ion the past few years.

Besides, the civic body has decided not to go for variation proposal. Variation here means spending more by altering the basic proposal or proposing additional work without inviting separate tender.

Aseem Gupta, additional municipal commissioner (Roads), said that they’d stop proposing variation work. “The concerned department should ensure that it doesn’t accept variation proposals,” he added.

The CAG report, which came during Winter Session of the state assembly, revealed that the roadwork contracts, which were originally worth Rs 1,160 crore, were increased to Rs 1,863 crore without inviting fresh tenders.

According to the BMC circular, variation is permissible only up to 15 per cent of the total cost of the project. However, out of the 88 contracts that were awarded between 2009 and 2011, 59 road contracts violated the rule. Following the blatant violations, the cost increased by a whopping Rs 703 crore.

Congress leader and leader of the Opposition in the BMC Dnyanraj Nikam had raised the issue during the standing committee meeting and demanded a CID inquiry into it. The NCP, MNS and SP had seconded Congress’s demand.

NCP leader Dhananjay Pisal, said, “The Sena-BJP alliance is to be blamed for all the losses that the BMC has incurred.” While SP group leader Rais Shaik said, “I want a thorough explanation, and have state government to initiate a CID inquiry in this matter.”

Meanwhile, Rahul Shewale, chairman of the standing committee and Dilip Patel, BJP leader said that they are ready for inquiry. “The committee either accepts or rejects whatever is proposed by the civic administration. The standing committee has no right to propose new work,” said Shewale.
Courtesy:
Sujit Mahamulkar
Mumbai, January 06, 2013

http://www.mid-day.com/news/2013/jan/060113-civic-body-agrees-to-face-cid-probe.htm