MSRDC to DB Realty: Our contract stands terminated

It further says DB Realty has not paid its yearly instalment of the licence fees as per the agreement. According to the contract,DB Realty was to pay 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. The state government agency has been charging DB Realty a penalty of Rs 1.5 lakh for every month of delay.

“Even though MSRDC had given DB Realty several notices and extensions,the company has not managed to complete most of the work. We will invite fresh tenders for the execution of the remaining work and maintenance of Bandra reclamation promenade,” a senior MSRDC official said on the condition of anonymity.

An official from DB Realty,requesting anonymity,said the company was yet to receive the termination notice,but it had already sent a letter to MSRDC requesting for an extension of four months.

“It is correct we had to complete the work by September-end,but it got delayed because of the monsoon. We had not expected the monsoon to be so severe this year when we gave an undertaking earlier this year to complete work by September-end. We have,however,completed a part of it,the walking track,which will be open by next week. The rest of the work will be completed by January if MSRDC grants us an extension,” he said,adding it was premature on MSRDC’s part to send a termination notice nine days before the deadline for completion.

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 its beautification and maintenance. DB Realty was to spruce up the seaside by creating a sea edge,road edge and a jogging track.

The beautification plan included building a cafeteria,amphi-theatres 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.

In February this year,MSRDC asked DB Realty to review the programme of completion of work and submit its commitment on a non-judicial stamp paper to abide by the revised schedule. DB Realty submitted an undertaking in April 2013,saying it would complete the work by the September-end. According to the official from DB Realty,the work was delayed mostly because it took the developer a lot of time to get the designs approved from the MSRDC.

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