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Bombay HC questions BMC’s ‘erroneous’ Rs 12.66 cr estimate for NSCI Jumbo Covid Centre use, seeks explanation

Bombay HC has questioned the BMC’s “erroneous” Rs 12.66-crore payout to NSCI Worli for its Jumbo Covid Centre. BMC chief Bhushan Gagrani will now have to explain a Rs 17-crore discrepancy?

During the earlier hearing on January 21, noting “huge difference" between the petitioner's calculations and the BMC’s, the HC had considered appointing a reputed city-based Chartered Accountant (CA) for assessing the duesEarlier, noting a “huge difference" between the petitioner's calculations and the BMC’s, the HC had considered appointing a city-based CA for assessing the dues.

Questioning the Rs 12.66 crore “erroneous” estimate given by BMC as compensation to National Sports Club of India (NSCI) in Worli for using its premises for Jumbo Covid Centre during pandemic, the Bombay High Court has sought an explanation from the Brihanmumbai Municipal Corporation Commissioner Bhushan Gagrani.

The NSCI had approached the HC last year, claiming that nearly Rs 30 crore was due to it as compensation.

A bench of Justices Ravindra V Ghuge and Abhay J Mantri on January 28 was hearing a plea by NSCI seeking payment of compensation for its facility, used as a Jumbo Covid Centre to meet BMC’s requirement for 30 months during the pandemic.

During the earlier hearing on January 21, noting “huge difference” between the petitioner’s calculations and the BMC’s, the HC had considered appointing a reputed city-based Chartered Accountant (CA) for assessing the dues as per applicable circular of the civic body.

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However, the BMC’s lawyer had said that it would have to consult the BMC Commissioner “for the reason that after such independent CA gives his calculations, it would be unusual and unreasonable to defy such calculation.”

On January 28, the BMC lawyer informed the HC that it had calculated over Rs 12 crore dues.
The court order recorded that BMC has taken a stand that it had not used the open area around the constructed Jumbo Quarantine Centre.

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The court directed Gagrani to file an affidavit “under his own signature and authority” to explain the formula applied for calculating the compensation to be made to NSCI.
The HC also sought to know “whether BMC had not utilised even an inch of land outside the Jumbo centre.”

If the commissioner takes a stand in the affirmative, the bench went on to note, “he shall explain as to where was the medical gas pipeline system, along with compressors, vacuum pumps and oxygen gas pipeline, PSA plant, HVAC, MGPS systems and LMO tanks, installed for ensuring that the Jumbo Quarantine Centre is utilized in the best possible manner.”

The HC will hear the plea on February 11.

 

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