HC lifts stay on ACB probe into Hiranandani project

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.