Two of three builders yet to give upfront payment to govt

However,more than two months later,only Pune-based Kakade group has paid its share of Rs 146 crore. PWD sources said the other two developers have asked the state government to grant them a three-month extension to gather money for the project even though letters of intent were issued to all three builders by the Ashok Chavan government way back in July 2010.

While developer Sanjay Kakade said his group made the entire payment by September-end,spokesperson for DB and Ackruti said they are in the process of making the payment soon. The largest chunk of the redevelopment pie — about 57 acres — is with DB,whose two promoters Vinod Goenka and Shahid Balwa are behind bars for their alleged involvement in the 2G spectrum scam.

A company spokesperson said the state government is considering the request of DB to extend the period of payment by 120 days. “DB Realty has also requested the government to hold a meeting of all the developers to sort out issues related to relocation of the existing government employees,schedule of handover of possession and approval of layout plans so that there is no further delay in implementation of the project,” said the spokesperson. He added that the company has appointed a reputed real estate consultant to oversee the leasing of alternative accommodation to the government employees.

Chief Secretary Ratnakar Gaikwad said new estimates by the state government show that the Bandra government colony plot is worth at least Rs 10,000 crore. On whether the government plans to re-tender the project,considering the possible increase in revenue generation,he said: “The government hasn’t taken a decision on this issue.”

As per the current redevelopment project,the revenue that will come to the government coffers is about Rs 2,400 crore in addition to constructed space in the form of highrise quarters,super-speciality hospital,an administrative building and a shopping centre on 70 acre.

The remaining 20 acres,a prime plot located close to the Western Express Highway and the Bandra-Kurla Complex (BKC),will be shared by the three developers. DB Realty has been given a 12-acre plot closer to BKC,while Ackruti City and Kakade group have been allowed to construct on 4 and 2.5 acre plots respectively.