He said the profit can be figured out only after 6-7 years, depending on the Transfer of Development Rights (TDR) market at that time.
As the 21-storey eco-friendly commercial building project in the Wakad area of Pimpri Chinchwad gets mired in allegations of corruption and favouritism, the builder on Friday ruled out any kind of illegalities and said that his profit remained uncertain. He said the profit can be figured out only after 6-7 years, depending on the Transfer of Development Rights (TDR) market at that time.
While strongly defending the controversial project in the reserved area, Pimpri-Chinchwad Municipal Commissioner Shekhar Singh on Thursday remained silent as to how much the builder will benefit through the project by way of Amenity TDR (Transfer of Development Rights).
”Like what the Municipal Commissioner said, I too want to state that there is nothing illegal in the project. If they want, they can scrap the project. But there is no scam at all. If I make profit out of this project, it will be mine. If there is loss, then I will have to suffer. There is uncertainty over my profit,” Aditya Javadekar, the developer and director of Vilas Javadekar Infinity Developers Ltd, told The Indian Express.
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Javadekar said that, at this stage, nothing can be said about the profit. ”The cost of the project is Rs 570 crore. I will be putting the entire amount into the project. The project is expected to be completed in around three-and-a-half years. The TDR is released in a phased manner as per the progress of the construction. After the project is completed, the full TDR is released after the ‘defect liability time’ or the warranty period. As the TDR is released as the work progresses, it can be used by me in my projects or I can sell it to other builders,” he said.
Javadekar said he will be investing Rs 570 crore as per the PCMC tender in the project and is expecting to get Rs 1,100 crore worth of TDR.
”I expect Rs 1,100 crore worth TDR in 6-7 years. But this is uncertain. If you consider the value of this amount after 7 years, I might just get between Rs 600-700 crore which is the normal 10-15 per cent profit. This is what the contractor’s margin is in 6-7 years. This is similar to the toll collected by contractors over a period of 20 years,” he explained, adding that the toll contractor makes the road and then gets the amount in 20 years.
Javadekar said the value of TDR of Rs 1,100 crore is completely in an uncertain zone and his profit is based on TDR market price which is always uncertain.
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“However, if I sell the TDR, it will depend on the market condition. And in this case, it is after 7 years. I might have to sell the TDR at a discount or at a premium rate. The amount might become Rs 600 crore if I sell it at a discount or might go up to Rs 1,500 crore if it is sold at a premium. In 7-8 years, the market will go up and down. Therefore I cannot expect how much I will get. It is all conjecture… I might gain some amount or might suffer loss as well depending on the TDR market,” the builder remarked.
Javadekar said, ”If I were to get TDR at one go, I would have told you the profit. But I will be getting TDR over a period of at least 7 years”.
Manoj More has been working with the Indian Express since 1992. For the first 16 years, he worked on the desk, edited stories, made pages, wrote special stories and handled The Indian Express edition. In 31 years of his career, he has regularly written stories on a range of topics, primarily on civic issues like state of roads, choked drains, garbage problems, inadequate transport facilities and the like. He has also written aggressively on local gondaism. He has primarily written civic stories from Pimpri-Chinchwad, Khadki, Maval and some parts of Pune. He has also covered stories from Kolhapur, Satara, Solapur, Sangli, Ahmednagar and Latur. He has had maximum impact stories from Pimpri-Chinchwad industrial city which he has covered extensively for the last three decades.
Manoj More has written over 20,000 stories. 10,000 of which are byline stories. Most of the stories pertain to civic issues and political ones. The biggest achievement of his career is getting a nearly two kilometre road done on Pune-Mumbai highway in Khadki in 2006. He wrote stories on the state of roads since 1997. In 10 years, nearly 200 two-wheeler riders had died in accidents due to the pathetic state of the road. The local cantonment board could not get the road redone as it lacked funds. The then PMC commissioner Pravin Pardeshi took the initiative, went out of his way and made the Khadki road by spending Rs 23 crore from JNNURM Funds. In the next 10 years after the road was made by the PMC, less than 10 citizens had died, effectively saving more than 100 lives.
Manoj More's campaign against tree cutting on Pune-Mumbai highway in 1999 and Pune-Nashik highway in 2004 saved 2000 trees.
During Covid, over 50 doctors were asked to pay Rs 30 lakh each for getting a job with PCMC. The PCMC administration alerted Manoj More who did a story on the subject, asking then corporators how much money they demanded....The story worked as doctors got the job without paying a single paisa.
Manoj More has also covered the "Latur drought" situation in 2015 when a "Latur water train" created quite a buzz in Maharashtra. He also covered the Malin tragedy where over 150 villagers had died.
Manoj More is on Facebook with 4.9k followers (Manoj More), on twitter manojmore91982 ... Read More
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