With beautification of Bandra reclamation promenade incomplete even after two years,Maharashtra State Road Development Corporation (MSRDC) has now served an ultimatum to DB Realty to finish the work by September or face cancellation of the lease agreement.
In 2010,MSRDC signed a lease agreement with DB Realty and handed over the 1.5-km promenade to the real estate major for 15 years for advertising rights,as well as beautify and maintain it.
We sent a letter to DB Realty in the first week of May,saying the lease would be cancelled if work is not completed by September. So far,other than the walking track,DB Realty has not been able to construct any of the structures it was supposed to, said an MSRDC official.
If the work is not completed by September,MSRDC will re-tender the contract, he said,adding that so far,DB Realty had not defaulted on lease payments.
DB Realty did not respond to a set of questions sent to it on Monday. According to the contract,DB Realty is paying MSRDC Rs 99 lakh per year,which was the highest bid that MSRDC received in 2010. The company with the second-highest bid was offering Rs 24 lakh per year.
According to the MSRDC official,work slowed down for a while when DB Realtys name cropped up in the 2G spectrum controversy.
DB Realty was to spruce up the seaside by having a sea edge,road edge and a jogging track. The firm was also supposed to build cafeteria,amphitheatres and structures depicting the seven islands that form Mumbai. The promenade was also supposed to have a sit-out for people and a separate area for meditation. The work was to be completed in January 2011.
MSRDC,which granted DB Realty several extensions in the past,started penalising the firm Rs 1.5 lakh for every month of delay. It has so far recovered Rs 36 lakh as fine from the company.
Until now,MSRDC was reluctant to terminate the contract because officials were not sure if other companies could match the amount DB Realty is paying.