MHADA, contractor row ends

MUMBAI, SEPT 23: The Maharashtra Housing and Area Development Authority today took yet another controversial decision by awarding a contr...

MUMBAI, SEPT 23: The Maharashtra Housing and Area Development Authority today took yet another controversial decision by awarding a contract to construct 10,000 tenements in transit camps in Mumbai to B G Construction Technologies Ltd. The firm was in the eye of the controversy a few months back after MHADA and the state government had jointly alloted a contract of constructing 10,000 transit tenaments at a higher rate to the same firm; the administration and BJP members in MHADA board had claimed the decision would cause a great loss to MHADA.

Surprisingly, though the Bharatiya Janata Party had opposed awarding the contract to the firm, the MHADA board dominated by Shiv Sena leaders, in a meeting held at MHADA head office at Bandra today, decided to go ahead with the decision. The BJP members claim that MHADA would incur a loss of Rs 168.51 crore in the deal.

The work contract has been divided into two parts of constructing 5,000 tenaments each. While a cabinet sub-committee has finalised a rate of Rs675 per sq ft for the builder, MHADA has provided an annual 10 per cent escalation in the rate.

The tenements are supposed to be constructed at Dindoshi and Malvani. However, BJP members claim that there is not enough land available at Dindoshi to construct 5,000 tenaments. Moreover, they claimed that the 3,000 tenaments constructed at Malvani, have not been provided with water supply by the Brihanmumbai Municiapl Corporation. This, they maintain, has created an additional loss to MHADA.

Meanwhile, MHADA administration has said that it has only Rs 32 crore in its exchequer. The officials said that the earlier fund of Rs 332 crore was reduced to the present figure after the state government forced MHADA to pay Rs 300 crore to Shivshahi Punarvasan Prakalp Limited SPPL early this year. In addition to this, MHADA has been unable to make considerable profits in construction of flats for higher income group customers at Powai and Oshiwara.

The MHADA board today also decided to slap a fine of Rs 35 lakh onyet another firm 8211; Abode Constructions. MHADA had alloted the firm a contract for constructing transit tenaments at Chandivali. However, it was noticed by MHADA officials that the construction was of poor quality and was in violation of quality norms laid down in the contract agreement.