Govt gifts almost Rs 300 crore to influential developer in land deal ………Nauzer K Bharucha
Prime Hotel Plot Changed To Residential Status
Prime Hotel Plot Changed To Residential Status
Mumbai: Nothing is sacrosanct in this city anymoreexcept money. The city itself is up for sale. Large swathes of precious public land are being all but gifted away by government agencies and departments in questionable deals. Rules are modified or ignored ever so often to allow constructions that violate even the basic tenets of civic/municipal planning. And public tender conditions are written in such a way that the bidding process is nothing but a sham.
Just about everyone in the powers of corridor knows whos being favoured, and where the money is going. And its not small changeits tens of thousands of crores. Whats unconscionable, even criminal, is that all of it is, directly or indirectly, public money and public space.
Almost every new day brings with it a deal that smells and tastes foul. Heres one thats just surfaced. It isnt the first, and it wont be the last.
The City Industrial Development Corporation (Cidco) may have lost a few hundred crores after it controversially allowed the extremely well-connected Pune-based developer, Avinash Bhosale to convert half of a 12-acre hotel plot into a residential zone on the prime Palm Beach Road opposite Seawoods in Navi Mumbai.
The decision, which was taken barely a few days before Cidco managing director G S Gill retired in March, has raised eyebrows, because soon after, Bhosale sold the six-acre residential portion for a hefty Rs 275 crore to the Mumbai-based Dheeraj Groupat a profit of 100%. Because, in July 2008, Bhosales Metropolis Hotels had paid Rs 282 crore for the 12-acre plot after emerging as the highest bidder.
Questions are being raised as to how a plot that was exclusively reserved for a luxury hotel could be partially converted for residences within two years of the bids being opened. A senior Mantralaya official, not wishing to be identified, told TOI, The sanctity of the bidding process has to be maintained. If the land has been converted for a more lucrative purpose, then it is grossly unfair. In government circles, Bhosale is known to be influential with friends in high places across the political spectrum.
When contacted, Gill said the conversion was carried out following the due process of law. Cidco rules permit such conversion, he said. Bhosale, on the other hand, told this newspaper that the plot is too big for a five star hotel. The proposed international airport in Navi Mumbai has been inordinately delayed and it will make no sense to make such a large hotel now. Part of the land has been converted into residential with Cidcos permission, he said.
Industry insiders question Cidcos motive to reserve 12 acres for a luxury hotel when most such hotels do not occupy more than two to three acres. Cidco would have fetched a substantially higher amount if the land had been auctioned for a residential project, said one of them.
Land change of use improper
Mumbai: Referring to Cidcos land largesse to wellknow Pune developer Avinash Bhosale, Arvind Goel, president of Navi Mumbai Chamber of Housing, said, This is nothing but political patronage. Policies are changed as per the convenience of officials. If other bidders had known that part of the hotel plot was going to be changed for residential purposes they would have quoted a much higher price when the bids were opened two years ago. Cidco has lost money, so who is the beneficiary? There is big money involved. Everyone knows, but what can you do?
According to activistlawyer Y P Singh, a change of use cannot be done this away. The demarcation for a five-star hotel is according to the requirement of the development plan.
According to him, the auction parameters have to be set prior to the auction to get the maximum possible bid. Any post-auction alterations will always be suspicious in nature, he said.
Oppn walks out over land deals
The Opposition on Tuesday demanded a CID probe into land deals entered into by Cidco in the past 10 years. Chief minister Ashok Chavan informed the House that the Shankaran committee appointed by the government had placed the loss to the tune of Rs 347 crore. As a probe had been conducted, he rejected the demand for a CID inquiry. Displeased with the CMs reply, the Opposition staged a walkout. TNN
PLOT OF GOLD
In July 2008, Cidco had received the highest bid of Rs 60,085 per sq m (Rs 282.40 crore) for the 47,000 sq m plot. Cidco had set a reserve price of Rs 37,000 per sq m. Others in the race for the plot were Indian Hotels Company (Taj) which bid Rs 260 crore, Sunn-Sand Hotel with a bid of Rs 232 crore and L&T Leela Venture Company with a bid of Rs 225 crore
* Pune-based Avinash Bhosale beat hotel groups like the Taj, L&T-Leela and Sun-n-Sand to win a Cidco auction for 12 acres of land earmarked for a hotel project on Navi Mumbais Palm Beach Road (above). Within two years, he got half of it converted into residential and sold it for a 100% profit. Cidco has been hit by several questionable deals