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Journalism of Courage
MUMBAI, January 30: To enable the Agriculture Produce Market Committee (APMC), Mumbai, repay loans it had taken from various banks, the Mumbai Metropolitan Regional Development Authority (MMRDA) has sanctioned the former a loan of Rs 55 crore.
In a meeting held last week, MMRDA sanctioned the loan to APMC after imposing seven conditions. One of the conditions is that the APMC will have to return the money in five years time. And will have to repay the money through instalments every three months at an interest of 13 per cent per annum. This way, the APMC will save as much as Rs 10.71 crore which it would have had to pay as an interest to various banks. As on October 30, 1997, the APMC owed a total of Rs 44.87 crore collectively to the State Bank of India, the Syndicate Bank, the Union Bank and the Punjab National Bank. The APMC will use the MMRDA money to repay the money borrowed from these banks. The remaining amount will be used by the APMC for some pending development projects.
However, the MMRDA hasstrongly criticised the APMC for borrowing money to improve its financial status.
The APMC, on its part, cites the following as the reasons for the debts it has run up: The delay in shifting of the fruit and vegetable markets from Byculla to Navi Mumbai and in constructing additional shops and godowns, pending problems of godown prices, increase in estimated project cost, loss in selling shops and offices in its own buildings, opposition by traders to repay loans at new rates, loss in revenue due to illegal trading and pending cases in various courts.
The conditions imposed by the MMRDA on the APMC are:
1. MMRDA reserved the authority to change the rate of interest at any time.
2. If the APMC fails to repay the amount within the prescribed five-year period, it will have to pay an additional three per cent interest per annum on the remaining amount.
3. The MMRDA will directly collect the installment from the APMC’s account every three months.
4. The APMC cannot take any loan without priorpermission from the MMRDA.
5. The APMC will have to also seek the permission of the state government before borrowing money.
6. The APMC will have to bear the cost for documentation and processing of the loan.
7. The APMC will have to pay Rs 10,000 as a legal fee to the MMRDA.
