MUMBAI, OCT 18: In a case that has raised eyebrows over a private builder's backtracking on a promise to construct a courthouse on a plot at Goregaon (E) in lieu of permission to develop the property, the state Housing Department has filed an affidavit in the Bombay High Court scaling down the proposed area to be handed over from the earlier 10 per cent to five per cent.The affidavit filed by Upendra Marathe, deputy secretary, Housing Department, before a division bench comprising Chief Justice Y K Sabharwal and Justice S Radhakrishnan, states: ``It has been decided that the construction that should be handed over to the government by the developer should be 5 per cent instead of 10. A fresh decision was also taken to grant current rates at the time of actual commencement of proposed courthouse.''As per the agreement between the state government and Aditya Constructions and Developers Private Limited (ACDPL), the developer was supposed to construct a building to accommodate courthouses on 1,01,935 sq ftof land, which amounts to 10 per cent of the over 10 lakh sq ft property, called Gokuldham. However, after selectively exploiting the terms of the agreement, ACDPL has built a residential-cum-commercial complex comprising 30 multi-storey buildings, which it has sold in the open market.Instead of initiating action against ACDPL for breach of trust and under the provisions of the Urban Land Ceiling Act, 1976, the state government may end up with a loss of Rs 100 crore to the exchequer.ACDPL, which has been dodging the matter since 1979, has refused to construct the court building at a rate fixed by the state Public Works Department. The state government's affidavit, in a public interest litigation filed by a private citizen Bhagvanji Raiyani, in the Bombay High Court in March 1999, states that permission to develop the property was granted on July 20 and 23, 1979 and May 25, 1980. As per the agreement, the developer was to hand over a constructed area of 1,01,935 sq ft to the government to be used tohouse Sessions Courts. The plans for courthouse were subsequently approved by the high court registrar and the Brihanmumbai Municipal Corporation in July 1988.The affidavit adds that the Secretaries' Committee of the state government sanctioned the proposal on January 16, 1989, and it was also decided that district schedule rates for 1988-89 be made applicable for construction of the building. This decision was communicated to the developer on January 21, 1989. However, the developers did not accept the rates and expressed unwillingness to construct the building at the said rates.The developer made repeated representations to the authorities concerned including the chief minister for finalisation of rates applicable at the time of commencement of work. Thereafter, at a meeting of the chief secretary and secretaries of other departments, it was decided that appropriate action under the Urban Land Ceiling Act be initiated against the developer.In the meantime, the Supreme Court had in one of itsjudgements directed that in cases where permission to develop land was granted under the Urban Land Ceiling Act after January 30, 1990, the percentage for reservation for the government be reduced to 5 per cent from 10 per cent, the affidavit adds. However, while the Supreme Court's judgement refers to permission to develop land after January 30, 1990, permission to develop the Goregaon (E) plot was given prior to the date fixed by the apex court.
