Sick mills violate revival scheme

“I have asked municipal commissioner Girish Gokhale to fix the responsibility for dereliction of duty and initiate stern action against those found guilty. Action will also be taken against erring mill owners,” the chief minister said.

The official report submitted to Joshi makes it clear that BMC officials apart, a section of officials from the Urban Development department played a “vital” role in aiding the erring mill owners.

“I have asked the chief secretary to conduct a probe against officials of the Urban Development Department in this connection,” Joshi said.

Seven sick textile mills – Shriram, New Great, Kamla, Matulya, Khatau, Modern and Swan – had submitted revival proposals before the BIFR.

The proposals envisaged disposal of surplus lands to garner funds for modernisation of the mills. As per the proposal, Khatau Mills would construct industrial galas on the surplus land. However, an examination of the premises has revealed that the management has sold the land to a leading builder for construction of a residential complex.

“Though the construction has not begun, the BMC found a board declaring that a residential complex was being constructed there,” Joshi said.The management of Shriram Mills sold half of the 1.20 lakh sq ft land for development for residential complexes. Under the DC rules, it was the responsibility of Shriram Mills to obtain permission of the Urban Development Department before disposing off the surplus land.

The corporation observed that Kamla Mills had constructed three buildings in complete violation of DC rules, while Modern Mills had undertaken more construction activities than were permitted by the BMC.

The state government had ordered a stay on construction work in Swan Mills, but a deputy secretary in the Urban Development department granted permission to continue the work.