The state government pulled up MCGM’s high-powered committee for not exercising due diligence.
Lok Group.
To some activists, the design behind Remaking of Mumbai Federation was clear from the start. UTSAL KARANI AND HIS COLLEAGUES AT JANHIT MANCH blew the whistle on Lok Group and ROMF several times, until Chief MinisterPrithviraj Chavan and Municipal Commissioner Subodh Kumar finally opened their eyes.
We need to remember that builders can create a marketable asset without having anything in hand, just like magic.
We must remember that builders will always find innovative ways of bypassing the processes of competitive bidding and project evaluation by whipping up public sentiments.
On this solemn occasion of Shri Lalit Gandhi’s second death anniversary, let us all maintain one minute’s silence and remember how Lok Group and Remaking of Mumbai Federation nearly pulled a fast one on this city.
Contrary to the public perception that was created, there was nothing “inclusive” about Remaking of Mumbai Federation. It was never a true federation of stakeholders, and it never gained the grassroots level support from landlords and tenants of Chira Bazar. The couple of tenants associations supposedly supporting ROMF were little more than letterheads.
To Lalit Gandhi’s Lok Group — the owner of this NGO — Chira Bazaar Cluster Development was a cash cow to be carved up into beef and sold to the highest bidder. Had things gone according to plan, Lok Group might have reaped bumper profits by selling it for at least Rs 37.5 crores, if not much more. See the last page of the Chira Bazaar sale agreement between Lok Group and Unity Realty & Development Ltd: http://tinyurl.com/Chira-Bazaar-Sale-Agreement
On page 6, under the heading, ‘Cancellation of earlier MOUs and Agreements’, this document refers to an earlier transaction worth Rs 37.5 crore in August 2010, in post-dated cheques dated from November 2010 till end-2013. ROMF had claimed that it would deliver the Chira Bazaar cluster development project, tied up neatly, to Unity Developers. (Unity Infraprojects Limited — UIL — is the holding Company of Unity Realty & Developers Ltd – the buyer of this project. The promoters of UIL — K K Avarsekar and his associates – are known to have the blessings of the Thackeray family; this may explain the eagerness of MCGM’s High Powered Committee to overlook the glaring shortcomings of this project.)
So, in effect, this present agreement, which scaled down the payment to Rs 10 crore, was an admission of ROMF’s inability to deliver as promised.
As per the present agreement made in Jan 2011, Lok Group and ROMF sold a 5 acre “pilot project” carved out of this 30-acre project to Unity Realty & Development Ltd (URDL) for down-payment of Rs 5 crore, plus Rs 5 crore linked to the project progress. See page 9-11 of their redevelopment agreement under the heading, ‘Monetary Obligations & Considerations’.(Incidentally, this deal was transacted on stamp paper of Rs 100. Stamp duty of 5% of value of immovable properties / land / development rights was not paid on this Development Agreement. If we take the deal at its face value — Rs 10 crore – it amounts to stamp duty evasion of about Rs 50 lakh. But some experts feel that the true value of this agreement is far beyond these figures; even under the scaled-down agreement, ROMF was delivering to Unity Realty an intangible asset worth hundreds of crores. One way or another, it is a huge evasion, and Maharashtra Stamp Duty department should estimate what its true value is!)
In this agreement, the seller is ROMHIF. So what is the connection of ROMHIF with ROMF? This extract from Lok Housing & Constructions Ltd Directors Report 2010 explains it: “Remaking of Mumbai Housing Infrastructure & Finance Ltd (ROMHIF) submits proposal for Chira Bazaar Cluster redevelopment in C Ward of Mumbai. The High Powered Committee clears Chira Bazaar Cluster redevelopment proposal of ROMHIF to redevelop around 30 acres of land (362 buildings and over 8000 tenements)… The proposal for demolishing of old and dilapidated structures and construction of high rise buildings is under consideration with Government of Maharashtra… ROMHIF has submitted its proposal to redevelop around 30 acres of land (362 buildings and over 8000 tenements) in the Kalbadevi-Chira Bazar area in C Ward… It proposes to demolish these old and dilapidated buildings and in their place construct high rise structure in the ear-marked plots… Lok Housing Ltd has 49% stake in the shareholding of Remaking of Mumbai Development Ltd. (ROMD) which is the holding Company for ROMHIF”. As per the website of Registrar of Companies, the registered Addresses of both ROMD and ROMHIF is Lok Bhavan, Andheri East, Mumbai. Paid up capital of ROMD and ROMHIF is Rs 40 lakh and Rs 5 crore respectively.
The state urban development department has rapped the civic high-powered committee for not exercising due diligence while clearing the Remaking of Mumbai Federation (ROMF)’s ambitious 29-acre cluster redevelopment project. It has pointed out that the proposal was forwarded to the state without ensuring irrevocable consent from tenants and landlords on stamp paper.
The project was to cover Mumbai’s oldest ‘gold street’, Chira Bazaar, and parts of Kalbadevi.
Thehelka has come out with a Story as a follow up of its earlier report on the nexus between Land mafia and Politicians in Maharashtra.
Close on the heels of the irrigation scam , comes the report that Prithviraj Chavan , the present CM scrapped a plethora of questionable deals amounting to 72000 crore(55+12=4089)
Some of the deals were signed just few hours before Ashok Chavan remitted office ,as a result of Adarsh Scam.
Point of interest is that the Congress is in cahoots with NCP and they can not afford to adopt the ‘Holier Than Thou’ attitude.
1. Ashok Chavan Former Chief Minister, Maharashtra As revenue minister, gifted 102 acres in the heart of Pune to a private builder for a mere 4,058. Actual worth of the land: Rs 2,500 crore 2. Sharad Pawar Union Agriculture Minister Tech Park One, a company owned by Pawar’s family and close friends acquired defence land for 7 crore. Its market value: Rs 70 crore 3. Vilasrao Deshmukh Rural Development And Panchayati Raj Minister A CAG report indicted Vilasrao for illegally allotting a 2 lakh sq m plot at throwaway prices to the Vilasrao Deshmukh Foundation, a trust run by Deshmukh and his family 4. Ajit Pawar Deputy Chief Minister, Maharashtra Gave away 2 lakh sq ft of land to AG Mercantile. It later emerged that Ajit Pawar had owned 8,800 shares of the company when 2G scam accused Vinod Goenka was its director 5.Supriya Sule Lok Sabha MP Along with her husband, Supriya holds substantial stakes in multi-billion-dollar real estate projects. Has a stake in Tech Park One, which constructed Panchsheel Tech Park on a defence plot, earning an annual rent of Rs 27 crore Photos (L To R): Shailendra Pandey, Deepak Salvi, Shailendra Pandey, Fotocorp
Though it’s still early days, Prithviraj seems to be charting his own course. In an informal discussion with a small group of journalists at his residence on 12 May, he expressed his dismay with the way the multi-billion rupee Dharavi slum rehabilitation project was structured by his predecessor, Ashok Chavan.
“We have over half-a-dozen town planning and housing government agencies in this city,” said Prithiviraj. “I don’t understand why we should hand over precious public land to private developers when we ourselves can do the rehabilitation and redevelopment work. The government will stand to earn hundreds of crores of rupees from the land that would otherwise go into the pockets of private builders.”
12,500 cr
The total worth of the township projects that were scrapped by Prithviraj. The projects had been cleared on the morning of 11 November 2010, just hours before Prithviraj took over
Dharavi, Asia’s largest slum, is spread over 500 acres in the heart of Mumbai. Out of the 500 acres, 150 acres has already been redeveloped. But the redevelopment proposal of the remaining 350 acres has been in limbo for the past 15 years, primarily because both the builders and politicians are wrangling over their share of the spoils.
The government owns almost 80 percent of this land (75 percent belongs to the state government and the rest to the Central government). The government files show that after relocating more than 60,000 families living on this 350 acres, at least 4.35 crore sq ft of built-up area will be available for sale in the free market. According to a very conservative estimate (based on a projection made by a government official and is part of the official file), the private developers will stand to earn a gross revenue of more than Rs 26,000 crore. The market estimates put the figure in excess of Rs 50,000 crore……
ON MAY 7, Prithviraj scrapped two special township projects worth over 12,500 crore that had been awarded by Ashok Chavan to private developers without inviting any competitive bidding. The projects were given clearance on the morning of 11 November 2010, just hours before Prithviraj was administered the oath.
Between 1-10 November, files related to these projects moved at an astonishing speed between half-a-dozen government departments before finally being sanctioned by Ashok Chavan just a couple of hours prior to Prithviraj’s oath ceremony.
Now Prithviraj has not only scrapped these two projects, he has also put another four integrated township projects — the cumulative worth of all the six projects is about 55,000 crore — awarded by Ashok Chavan and Vilasrao Deshmukh under review. All these six projects were approved arbitrarily and without inviting any competitive bids or public tenders. (See the box on 3K).
55,000 cr
Cumulative worth of six projects awarded by Ashok Chavan and Vilasrao Deshmukh now under review. They were approved arbitrarily without inviting any competitive bids
When contacted, Deshmukh told TEHELKA, “I don’t have the project files with me anymore. But what I can say is that the projects were sanctioned as per the rules.” Ashok Chavan refused to comment on the issue saying that the matter was sub-judice.
But if the Adarsh Housing Society scam was appalling, what will you do after reading the following disclosures?
On 9 January 2002, when Ashok Chavan was the revenue minister in Deshmukh’s government, he passed a “scandalous order” whereby he allegedly gifted away 102 acres in the heart of Pune to a private builder. The land was situated in one of Pune’s most posh localities, Senapati Bapat Road.
In Maharashtra a scam of Rs 72,000 Crore has been exposed by Vijay Pandhare, chief engineer (water resources department) and member of the state-level technical advisory committee.
He sent 15-page note to the State Government and blamed the politician-officer-contractor nexus for the mess.
The Note was sent in May 2012 and it became Public in September.
The State provided Rs 7000 crore in the Budget.
The liability exceeds Rs.1,000,00 Crore!
The estimates were revised arbitrarily, in one case from Rs 200 Crore to 650 Crore,
Over 3000 such Projects were completed( on paper)
32 Major Projects were cleared by Ajith Pawar in three months
Productivity of the scheme is not even 0 .1%
Excerpts of the Note:
‘In an explosive revelation, a whistle-blower in the state government has said a staggering Rs 35,000 crore was siphoned off and wasted on dud irrigation projects in the past decade. The Maharashtra government has spent Rs 70,000 crore on such projects across the state during this period….
Pandhare further revealed that IDCOM, a corporation formed by the irrigation department, undertook 227 medium projects for lift irrigation schemes. “They could not be completed. No one benefited from these schemes and public money was wasted. Who is responsible for this?”
The letter said 3,000 such lift irrigation schemes were completed, but not even 1% of them are functional. “Despite knowing the history, estimates and tenders worth Rs 1,000 crore to Rs 4,000 crore are formulated,” it said.
Pandhare stated that the annual budget of the state irrigation department is around Rs 7,000 crore. “Yet, how is it that the state has incurred a liability of nearly Rs one lakh crore to execute the balance ongoing projects? A prudent government would never take such a decision. We need to introspect on it,” he said.
The chief engineer gave the example of the Nardave project in Konkan, the cost of which was revised from Rs 200 crore to Rs 650 crore after the dam height was increased without proper sanction. “The rate estimate of this project is fit case for detailed investigation. The contractor was provided an exorbitant rate,” said his note.
“Likewise, crores of rupees were paid as false claims towards machinery idle charges and sanctioned every year by the executive director. He had no such power. Yet he sanctioned it along with the minister in a hurry, without the permission of the government,” it said. The same modus operandi was used in Kondhane, Balganga and Hetwane projects in Konkan. “Officers who attempt to vet or investigate are transferred,” said Pandhare in his note.
In the Konkan region, minor irrigation projects are approved and immediately a proposal to increase the height of the dam is mooted and sanctioned at the level of corporation. “Rates are increased under political pressure, tenders are floated and managed. This has been going on in Konkan for the last 20 years,” he claimed.
Pandhare suggested that 30-40 proposed projects in Konkan be stopped because the water utilization in this region is not even 10%. “All tenders of projects which have incurred less than 20% of the estimated expenditure must be thoroughly investigated, and if required, cancelled in public interest,” it added.
The chief engineer also gave the example of the Manjarpada-1 project. The cost is Rs 500 crore to create water storage of 500 mcft. The officer said only Rs 15-16 lakh was required per mcft. “Irrigation department’s investigation wing, which actually prepares the estimates, is literally non-existent. Hence, regional officers of the corporation themselves make the estimates without check. In reality, contractors themselves make the estimates,’
It transpires from News Channels that Ajith Pawar was building his coterie against his Uncle Sharad Pawar.
Sharad Pawar,whose MPs also count in the Lok Sabha for the stability of the UPA at the Centre has been able to ward of inquires into this scam till now.
Shaken by the Documents surfacing in the Media the Congress is reported to be arranging for an enquiry as the Congress is now besieged by the Coalgate scam(35,000 Crore)
Upset by his Uncle not being able to block enquiry Ajith Pawar is reported to have resigned and made his supporters to resign.
Shard Pawar can not afford to leave the Centre now, though he is putting on a Show that he would quit
The whole episode is a drama being enacted for Public consumption and to take the heat off the scam for now.
It is expected that the Ministers will take back their resignations to morrow and Ajith pawar may lie low for the time being, only to be reinstated at the Centre Like TR Baalu of the DMK.Right now the CM Prithviraj chavan declined to accept Ajith Pawar’s resignation
All this deflects adroitly the attention that needs to be paid to the scam.
See the Power-play.”
In a debate moderated by TIMES NOW’s Editor-in-Chief Arnab Goswami, panelists — Vinod Mehta, Editorial Chairman, ‘Outlook’; Keshav Rao, Cong Gen Secy in-charge, AP; Kirit Somaiya, National Secretary, BJP; and Swapan Dasgupta, Senior Journalist — debate the issue whether the real fight between the NCP and Congress is about ending investigations into multi-thousand crore rupee scams in Maharashtra.
NCP has decided to pull out of the UPA govt and support it from outside in protest against the way the party was treated by Congress, creating fresh trouble for the ruling coalition. NCP chief Sharad Pawar, Minister for Agriculture, and the only other representative in the Union Cabinet, Praful Patel, Minister for Heavy Industry, have informed PM Manmohan Singh that they are tendering their resignation. In a separate communication to UPA Chairperson Sonia Gandhi, Pawar has said NCP, which has 9 members in the LS and 7 in the RS, will stay part of the UPA. Despite these missives from NCP sent yesterday, the Cong leadership was continuing to make efforts to retain the party in the coalition govt. The Cong Core Group including Gandhi, Singh and senior Ministers, met this evening after which party sources claimed the crisis was being defused. TIMES NOW gets you the inside story on why NCP and Cong are fighting a high-pitched battle. Sources close to TIMES NOW say that twin scams in Maharashtra is the real reason behind Sharad Pawar-Congress fight. The alleged Rs 26000 cr irrigation scam and Maha Sadan scam are believed to be the reason behind the latest standoff. As the Congress-led state government in Maharashtra begins to probe the scam, sources within Congress say that they were expecting the events unfolding in the capital.
Initial reports indicate electrical short-circuit as the cause.
But doubts arise because important files including Adarsh Scam files were gutted.
A major fire broke on Thursday broke out at ‘Mantralaya’, the Maharashtra state secretariat complex that houses offices of the chief minister, key ministers and top officials.
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Close to two hours after it was first noticed near the cabin of Tribal Welfare Minister Babanrao Pachpute on the fourth floor, the fire continued to rage till late in the afternoon even as fire fighters battled the leaping flames.
There was no immediate report of any casualty but several people were suspected trapped on the upper floors and terrace, prompting authorities to press into service contingents of the elite commandos of Force One and city police’s Quick Response Teams. Two teams from the naval dockyard were also rushed.
Panic gripped the sprawling building, the seat of state administration, after the fire, first noticed around 2.45pm, spread swiftly to fifth, sixth and seventh floors.
Towering plumes of blinding smoke soon engulfed the building making it difficult for the fire brigade to evacuate the stranded.
According to sources, nearly 5,000 people vacated the building within 20 minutes of the fire breaking out.
Fire brigade personnel with huge hydraulic ladders were seen bringing down those trapped.
Choking in thick black smoke, several people were seen standing precariously on the parapet and balconies, waiting to be rescued. Many could be seen rappelling down the ropes and drain pipes in a desperate attempt to escape.
According to sources, the Urban Development Department, which is embroiled in a controversy over the Adarsh scam, and departments of Home, Revenue and Industries were the worst affected by the fire.
An eye witnesses said some people were injured but no immediate official confirmation was available.
Pachpute said he heard a blast soon after the blaze started. Though his staff used fire extinguishers to put out the flames, it spread rapidly.
“I ran down and pulled out my cabinet colleague Jayant Patil from his third floor cabin,” Pachpute said.
Animal Husbandry Minister Madhukar Chavan said he heard several blasts in the air-conditioners at he attempted to escape.
Pachpute said the fire brigade started its work around 3.05 pm, nearly 20 minutes after the blaze started.
Mumbai Police Commissioner Arup Patnaik, who arrived at the spot, said the rear portion of the building had suffered the maximum damage but did not confirm if anyone was injured.
Efforts to douse the flames were hampered by winds, he said.
To persistent questions if Adarsh files had been destroyed in the fire, he said, “Our primary concern is to sort out the situation, to rescue people.”
Chief Minister Chavan and Deputy CM Ajit Pawar were superivising efforts to quell the fire and rescue the trapped
Meanwhile, the Navy has pressed into service two helicopters that hovered over the Mantralaya to rescue those who might have been stuck.
“There is nobody present on the terrace. We are using the public address system to ask those who might be trapped inside to rush to the roof-top and ropes would be dropped from the helicopters to rescue them,” a naval spokesman said.
He said frantic efforts were being made to reach those still in the building through phones.
“I also appeal to those who have access to TVs to rush to the roof-top. There are helicopters waiting to rescue you,” he said”
6.25pm: A special naval team is at the Mantralaya building even as the Mumbai police ordered an investigation into the cause of the fire that gutted several floors of the secretariat. The fire finally looked to be under control, a full two and a half hours after it first broke out.
5.55pm: The latest reports coming from Mantralaya state that all those trapped as a result of the fire have been rescued. Several injured have been admitted to hospital, but no one is believed to be in much danger.
5.22pm: The CBI has said that all the files relevant to the Adarsh scam are safe with the courts and have not been damaged as a result of the Mantralaya fire. Earlier there were reports that the Adarsh files may have been damaged as the fourth floor that initially caught fire had housed the documents relating to the scam.
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