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MMRDA loses vital file in Hiranandani case

The Mumbai Metropolitan Region Development Authority (MMRDA) has misplaced a set of crucial documents needed for an anti-corruption probe against Hiranandani Developers in Powai.

 

The state anti-corruption bureau, which is investigating the case, in which flats were amalgamated and sold by Hiranandani, had sought the documents from MMRDA on November 26. In a letter to MMRDA, S Bhoite, additional Superintendent of police, ACB, had asked MMRDA to produce documents related to the case, including an order issued by MMRDA to amalgamate the houses.

 

The case is about the Hiranandanis allegedly breaching a 1986 agreement with the state government and MMRDA, under which the group was allowed to use 230 acres of land in Powai to build affordable homes and in return hand over some of them to the state at cheap rates.

 

The 230-acre chunk of real estate had got many concessions under the now-abolished Urban Land Ceiling (Regulation) Act (ULCRA).

 

In 1986, the state passed an order, fixing compensation at Re 1 per hectare for the land’s original owners and handed it over to the Hiranandanis. In return, the Hiranandanis were to build affordable flats – half of them 431 sq ft in size and the rest with an area of 861 sq ft. Fifteen per cent of these flats were to be given to the state at Rs 135 a sq ft.

 

However, Hiranandani Developers went ahead and built palatial houses in Powai, in violation of the agreement, which prompted the Bombay High Court to pass an order on February 22, directing the developer to stop all construction activity on the remaining plots under the Powai Area Development Scheme (PADS).

 

The case was investigated by then MMRDA commissioner Ratnakar Gaikwad, who recommended a Rs 2,000-crore fine for the Hiranandanis. Gaikwad submitted his report to the state urban development department, which later said that the developer was liable to pay only Rs 89 crore.

 

An inquiry initiated by the MMRDA commissioner with the help of the civic administration last year revealed that of the 5.74 lakh sq m of built-up area that was allowed on the land, the developer had used just 76,120 sq m, or 15%, for low-income housing.

 

 

The vast majority of the apartments were amalgamated and sold as luxury pads ranging from 2,000 sq ft to 4,000 sq ft.

 

During the inquiry, the Hiranandanis had claimed they got permission from the MMRDA in 1989 to amalgamate some flats. Hiranandani’s counsel also told the high court that some flats were sold as smaller units but were later amalgamated into larger apartments.

 

Sources in the MMRDA said it is this order to amalgamate the flats that is missing from its files.

 

A senior MMRDA officer said, “They have asked for information related to the Powai case, which we are giving. But we are still looking for the documents related to amalgamation. We have searched the entire office but have not been able to trace them. These documents are very old – they were issued in 1989. None of the officers who worked in those days are with us now.”

 

Meanwhile, IPS officer turned lawyer Y P Singh, lawyer for the complainant, Santosh Daundkar, said, “This case is more serious than frauds done by A Raja and Suresh Kalmadi. In this case, the ACB has neither arrested the accused nor raided their premises to obtain valuable evidence to prove the case. It is quite evident that MMRDA is not cooperating because a thorough investigation will reveal big names. The amalgamation order was the starting point of this criminal conspiracy. The ACB must get hold of it.”

 

Director General of Police (Anti Corruption Bureau) Praveen Dixit confirmed that the bureau was conducting a probe into the Hiranandani case. “We have been asked to submit a report to the local ACB court on the issue. Hence we sought information from MMRDA. The report will be submitted to the court on Friday. The court will then issue further guidelines on the probe,” he said.

Source: http://www.mumbaimirror.com/mumbai/others/MMRDA-loses-vital-file-in-Hiranandani-case/articleshow/26540186.cms

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