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This is an archive article published on November 2, 2010

UT officials ‘twisted’ rules for Durga Dass Foundation

Senior officials of the Chandigarh Administration showered favours upon Durga Dass Foundation by allotting enhanced floor area ratio.

Senior officials of the Chandigarh Administration showered favours upon Durga Dass Foundation by allotting enhanced floor area ratio (FAR) on the old rates even though the stipulated time of three to five years from the date of allotment had already lapsed. The documents procured by the Central Bureau of Investigation show how the UT Administration went ahead and allowed enhanced FAR,ignoring the then prevalent market rates,to Strawberry Fields,Sector 26,a school run by Durga Dass Foundation.

Copies of around 550-page documentation on the enhancement in FAR to Strawberry Fields School,procured by Newsline,show how officers,presently serving on key positions,“favoured” the school by “twisting” the prescribed rules and regulations.

The foundation was allotted a school site in the name of Strawberry Fields,Sector 26,on June 2,2003. On January 18,2006,the Estate Office sent a communication to the foundation stating that the UT Administrator,while exercising powers conferred under the Chandigarh Lease Hold of Sites and Building Rules,1973,had decided to incorporate following conditions of lease in the aforesaid allotment letter — “that the lessee would utilise the balance FAR within the next three to five years and would deposit the balance cost of land”. The condition was added in the allotment letter sent to the foundation.

On May 19,2006,director of the foundation,Atul Khanna,moved a representation to the then finance secretary S K Sandhu that he be allowed to utilise the additional FAR (from 0.25 to 0.50) from the date when the Estate Office intimated him about the new clause added in the allotment letter. This was,however,rejected on September 18,2006.

A week after this decision,on September 25,2006,Khanna moved another representation to Sandhu and this time Sandhu recorded a noting on the representation — “please process”.

A large number of documents (in Newsline’s possession) show how the officers of the Administration tried to pass the buck at each other,while taking decision to allow additional FAR to Durga Dass Foundation at old rates.

An internal communique of the finance department clearly reveals that the foundation could only be allowed to utilise the additional

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FAR (from 0.25 to 0.50) by paying the additional cost till June 2,2008. A note signed by the then joint secretary (Finance),dated October 25,2006,reads,“According to instructions,the Durga Dass Foundation can utilise the 0:50 FAR by June 2,2008,by paying additional price. Now,their request is to allow it from the date when they intend to get the additional FAR from 0.25 to 0.50. Therefore,a decision has to be taken in this regard”.

The finance department sought comments from the chief architect and senior town planner on the issue. Both officers wrote that it involves a policy decision and the same may be taken at the level of finance department.

The Administration,including former UT Administrator General S F Rodrigues (retd),Adviser Pradip Mehra and Finance Secretary Sanjay Kumar took a decision to allow Durga Dass Foundation an enhancement in FAR from 0.25 to 0.50 at the rates prevailing five years ago (i.e. 900 per square yard for 0.25 FAR and 1800 per square yard for 0.50 FAR) in December,2008.

The same decision was communicated to Durga Dass Foundation in January 2009 and finally the Foundation was allowed to pay the requisite amount in 10 annual installments,payable till 2018.

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All this was done by officers when the administration’s own notification issued in 2007 quoted the then prevalent land rates at around Rs 15,500 per square yard.

“We are still investigating the matter. Official records are under scrutiny. Officers shall be asked to explain their side; before we complete the inquiry. Nothing more can be divulged at this stage,” said a CBI officer.

None of the officials concerned of the Administration were,however,willing to speak anything on record about the matter.

Off the record,a senior bureaucrat said,“There is nothing wrong in this enhancement of FAR. The rules mentioned that if the lessee has intended to utilise the additional FAR within 3-5 years of allotment of site,he could be given the benefit”. However,when shown the notification and communications exchanged among the officers of the administration,which clearly mentioned that “the additional FAR would be utilised by the allottee within 3-5 years from date of allotment”,the officer said the rule was impractical as it was difficult to utilise the additional FAR within five years.

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Another senior officer said,“It was not our department that did anything wrong. Our decisions were misinterpreted by the other department,which was responsible to check what rates are to be charged from the beneficiary.”

Another senior officer,said,“Whatever instructions we received from the concerned department we complied with. It was their job to quote the right rates.”

Director of Durga Dass Foundation Atul Khanna said,“All rules were followed. The allottees were to apply for enhancement in FAR from 0.25 to 0.5 within 3-5 years of date of allotment,which we did. There is no ambiguity in rules. It was the administration who allotted land to the foundation. They should be questioned on all such issues.”

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