State gives green nod to contentious Rs 2,250 cr project
Public Accounts Committee slams the clearance saying deal ensures ‘maximum gain for the developer but loss for state’
A state environment committee has cleared one of the state’s most contentious land deals in recent years where a private builder gets to redevelop the 28 acres of land on which the Chembur beggars’ home stands.
According to the 2008 deal, Joynest Premises will get to build a colony on nine acres of the plot. In return the developer will give the state Rs 334 crore worth of buildings and a premium of Rs 11 crore.
On May 6, the State Level Expert Appraisal Committee, the state’s primary environmental committee, cleared the proposal for construction of ten 14-floor towers and nine 7-floor towers, each with two basements. The State Level Environment Impact Assessment Authority will give its nod on May 15. The residential project will have 871 flats. As of today, the compound houses a beggars’ home and residential barracks meant of employees. The developer stands to gain over Rs 2,250 crore from the deal. Also, 479 trees will have to cut in order to develop the plot.
The municipal corporation has been strongly objecting the project on the grounds that land marked as a beggars’ home in the Development Plan should be used only for public welfare and cannot be given to a private developer.
Another criticism of the project is that while the builder stands to make a windfall, the state government gains nothing from it. The state legislature’s public accounts committee recently slammed the deal. “Considering the rising land prices in Mumbai, the 99 year agreement with the developer and the grant of 40,000 sq m (nine acres) of land for private construction makes is clear that the government has entered into a loss-making venture,” said the report.
The PAC further said there were a lot of contradictions in the agreement, which it said was drawn up with the main intention of ensuring that the developer got maximum benefit.
“Considering the market value of the land at Chembur for the next 94 years, the cost of land given to the developer will rise day by day. The construction and facilities given to the state government will be negligible when compared to it,” said the report.
BJP MLC Girish Bapat, who is the chairman of the PAC, said he infact recommended the cancellation of the deal but the government did not listen to him. The PAC can only recommend a course of action.
“The government said since the agreement was vetted by the cabinet twice, it can not be terminated or it would lead to litigation,” Bapat told Mumbai Mirror. “The PAC has now recommended that the developer provide an open ground over and above what is in the contract andprovideanadditional3,000sqmeterspace.”
When the government first mooted that the plot owned by the PWD be de-reserved, it faced opposition from several activists and the civic body. However, the state Urban Development department de-reserved the plot in 2011.
“Existing infrastructure for housing beggars is extremely limited,” said BJP corporator Manoj Kotak. “When I was head of the Improvements Committee in BMC, corporators from all parties had unanimously opposed the de-reservation of the plot. Despite staunch opposition, the state went ahead and cleared the project.”
Milind Goraksha, an activist who has been campaigning against the project, said, “It is a shame the government wants to create a residential project on the land which was meant for beggars. Can they stoop any lower? We do not have the resources, but some should file a PIL.”
Courtesy:
Yogesh Sadhwani and Chaitanya Marpakwar mirrorfeedback@timesgroup.com TWEETS @_MumbaiMirror
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=MIRRORNEW&BaseHref=MMIR/2013/05/13&PageLabel=3&EntityId=Ar00300&ViewMode=HTML
Public Accounts Committee slams the clearance saying deal ensures ‘maximum gain for the developer but loss for state’
A state environment committee has cleared one of the state’s most contentious land deals in recent years where a private builder gets to redevelop the 28 acres of land on which the Chembur beggars’ home stands.
According to the 2008 deal, Joynest Premises will get to build a colony on nine acres of the plot. In return the developer will give the state Rs 334 crore worth of buildings and a premium of Rs 11 crore.
On May 6, the State Level Expert Appraisal Committee, the state’s primary environmental committee, cleared the proposal for construction of ten 14-floor towers and nine 7-floor towers, each with two basements. The State Level Environment Impact Assessment Authority will give its nod on May 15. The residential project will have 871 flats. As of today, the compound houses a beggars’ home and residential barracks meant of employees. The developer stands to gain over Rs 2,250 crore from the deal. Also, 479 trees will have to cut in order to develop the plot.
The municipal corporation has been strongly objecting the project on the grounds that land marked as a beggars’ home in the Development Plan should be used only for public welfare and cannot be given to a private developer.
Another criticism of the project is that while the builder stands to make a windfall, the state government gains nothing from it. The state legislature’s public accounts committee recently slammed the deal. “Considering the rising land prices in Mumbai, the 99 year agreement with the developer and the grant of 40,000 sq m (nine acres) of land for private construction makes is clear that the government has entered into a loss-making venture,” said the report.
The PAC further said there were a lot of contradictions in the agreement, which it said was drawn up with the main intention of ensuring that the developer got maximum benefit.
“Considering the market value of the land at Chembur for the next 94 years, the cost of land given to the developer will rise day by day. The construction and facilities given to the state government will be negligible when compared to it,” said the report.
“The government said since the agreement was vetted by the cabinet twice, it can not be terminated or it would lead to litigation,” Bapat told Mumbai Mirror. “The PAC has now recommended that the developer provide an open ground over and above what is in the contract andprovideanadditional3,000sqmeterspace.”
When the government first mooted that the plot owned by the PWD be de-reserved, it faced opposition from several activists and the civic body. However, the state Urban Development department de-reserved the plot in 2011.
“Existing infrastructure for housing beggars is extremely limited,” said BJP corporator Manoj Kotak. “When I was head of the Improvements Committee in BMC, corporators from all parties had unanimously opposed the de-reservation of the plot. Despite staunch opposition, the state went ahead and cleared the project.”
Milind Goraksha, an activist who has been campaigning against the project, said, “It is a shame the government wants to create a residential project on the land which was meant for beggars. Can they stoop any lower? We do not have the resources, but some should file a PIL.”
Courtesy:
Yogesh Sadhwani and Chaitanya Marpakwar mirrorfeedback@timesgroup.com TWEETS @_MumbaiMirror
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=MIRRORNEW&BaseHref=MMIR/2013/05/13&PageLabel=3&EntityId=Ar00300&ViewMode=HTML
