Ally NCP hits out at CM-headed MMRDA

The Chief Minister agreed on Monday to a proposal to increase the time for completion of construction on such plots from four to six years,failing which builders will have to pay 15 per cent of the land cost to MMRDA every year.

On Wednesday,however,he ordered to keep the decision in abeyance to be taken up at the next MMRDA meeting. He claimed the decision seemed to benefit certain corporates.

But MMRDA ruled out favouring any entity and said plot-owners faced genuine problems as they required time to get clearances from the environment ministry and the BMC’s high-rise committee to start construction.

“It takes nearly two years to get all the clearances. It’s really not a question of benefiting anyone,” said Rahul Asthana,metropolitan commissioner at MMRDA.

NCP,which has six members in MMRDA,alleged the proposal was a conspiracy to benefit certain corporates and cause a loss to the state exchequer.

“People are saying it is a Rs 2,000-crore scam to benefit certain corporates. We approved the proposal on Monday because we believe the Chief Minster is an honest man and he heads MMRDA,” spokesperson Nawab Malik,himself an MMRDA member,said.

He claimed there should be an inquiry into how this proposal was included in the agenda for the meeting.

“We did not have adequate time to go through the agenda or we would have protested at the meeting itself. We now want CM to initiate an inquiry into the proposal,” Malik said.

Facing allegations of corruption,NCP has been targeting MMRDA and its functioning over the past few months. In fact,the party also demanded a white paper on the functioning of the Authority.

MMRDA reckoned there was a problem of people buying plots and not building for long. It said there were 35 plots where construction had not been completed.

Of the 35,seven plot-owners — Sterlite Industries,Reliance Industries,ONGC,Tata Power,Reliance Energy,Naman Housing and CBI — would benefit from the MMRDA proposal.

The total value of the plots is around Rs 2,800 crore and old rules would fetch MMRDA Rs 280 crore every year.

Complex issue

Bandra-Kurla Complex was created by reclaiming marshland in the 1980s.

The 208-hectare piece of land was given to MMRDA at an occupancy price of Rs 956 crore.

MMRDA subsequently made money by selling the plots.

It has so far leased over 100 hectares generating close to Rs 9,000 crore.

The plots were sold for prices ranging from Rs 1,980 per sq mtr to Rs 5.04 lakh per sq mtr.

However,many plots did not see construction and the agencies sold them off at a higher price to a third party.

MMRDA way to stop land transfer

Owners would have to complete work within four years of buying plots.

Failure to do so will allow MMRDA to enforce a penalty at 10 per cent of the land cost for the first three years and 15 per cent after that.

Suggested changes

MMRDA wants to increase time for construction completion from four to six years.

It feels new environment and high-rise clearance rules delay construction.

Plots affected

Seven — Owned by Reliance Industries,Tata Power,Reliance Energy,Sterlite,ONGC,Naman and CBI which fall in the 4-6 year bracket.

Money MMRDA could have made from old rules

Cost of all plots is Rs 2,800 crore. If MMRDA had decided to levy a fine,it would have received Rs 280 crore every year till the construction of these buildings was completed.