Mihan Nagapur----crying project effected farmers

Mihan Nagapur----crying project effected farmers ....2,00,000 jobs in 2010 promised by Mihan-brand ambasssadar..Nitin Gadkari says 'No more Mihan Please'

MIHAN Saga-Martyrs in the Name of Development

MIHAN Saga-Martyrs in the Name of Development

Victims of First City’s exploitation ask for higher compensation of

 at least Rs. 1 crore per acre

By Manish Soni

He is a martyr in the name of development. He sacrificed his life’s sole possession -- a plot of agricultural land of 2.5 hectares -- on the altar of urban growth. Two of his brothers, too, followed him, for a paltry sum of Rs. 3 lakh per hectare.

And on the same piece of land, today, Ms. Reatox Builders and Developers Pvt Ltd is constructing a project of luxurious housing -- First City Mihan -- to make hundreds of crores of rupees in “obscene profits” (to quote Chief Minister Prithviraj Chavan in the context of land deals in general).

This is development!

For 78-year-old Bhagwan Balaji Dahane, however, life now is a long story of personal devastation. As he passes the First City project every day, he looks forlornly at the structures towering over the landscape, looks down with misty eyes, and proceeds home. For the present, the Dahane family farms on another 10-acre land in CIDCO possession. However, they all know very well that in a short while from now, that farm, too, would slip into the hands of Maharashtra Airport Development Company (MADC), surely to be handed over to some developer. The family knows, utter poverty stares them in the face. For, they have understood by now, the money they will have after the transaction may not last for their lifetime.

This is development’s sad face. For, Bhagwan Balaji Dahane is not alone. There are many like him -- having been left high and dry by the so-called quest of urban development, having been left with paltry sums of money for their precious possessions, having been left to make do within that small sum for whole life while ‘developers’ build their own palatial mansions for mind-boggling costs.

Here is Sheshrao Mahakalkar. He, too, owned an ancestral land of 1.5 hectares in village Khapri on Wardha Road. His family was happy to earn about Rs. 3-4 lakhs per year from farming. Today, however, Sheshrao makes about Rs. 50,000 per year (that is, about Rs. 4000/- per month). Sheshrao now works as a water-tanker driver with a private company.

For Bhagwan or Sheshreao -- and also hundreds of other such farmers -- development means losing their small plots of land in favour of those urban elites who would never shed even a crocodile tear for them.

They will create First City MIHAN on 31 acres of land (Survey Numbers 9, 10, 12, 14, 19, 20, 21, 22, 23, 24, 25, 40, 47, 48, 49 and 50 in Mouza Khapri), a sprawling ‘world-class integrated residential township with state-of-the-art lifestyle’ having 11 impressive 13-storey residential towers with 1542 flats. Each flat of this project is being targeted to fetch a whopping Rs 25,00,000 to Rs 70,00,000.

Real owners of that land -- the Bhagwans and the Sheshraos -- will keep looking at their devastated lives through these huge structures, having got paltry sums in compensation from Maharashtra Government.

Bhagwan Dahane is a suffering from various diseases. And the family has around Rs. 11 lakh from the sale of their 2.52-hectare land on Survey Numbers 20, 21 and 22. Shesrao Mahakalkar’s family got a compensation of only Rs 5.50 lakh for its ancestral land 1.5 hectares at Survey Number 49 and 50.

Their sense of deprivation knows no bounds. MADC has taken their lands away. The developer is making huge money from that project. But they are bereft, hugh and dry. They, therefore, demand an additional compensation upto Rs 50 lakh per acre so that they can live their future life comfortably.

The Government has acquired 6.12 hectares of land of Ushabai Rathod at Rs 31.67 lakh, 3.78 hectares of land of Satish Rathod at Rs 17.46 lakh, 2 hectares of land of Daulat Mashram at Rs 8.56 lakh, 3.69 hectares of land of Govinda Sontakke at Rs 19.34 lakh, 1.72 hectares of land of Gyandeshwar Sontakke at Rs 5.85 lakh, 0.36 hectares of land Leheji Masram at Rs 1.27 lakh, 0.74 hectares of land of Fakira Masram at of Rs 2.52 lakh, 0.58 hectares of land of Rodba Sayam at Rs 2 lakh, 2.18 hectares of land of Yamuna Yadavrao Dandekar at Rs 6.71 lakh, 0.97 hectares of land of Kamlabai Rambhau Zade at Rs 3 lakh and 1.5 hectares of land of Mahakalkar family at Rs 5.50 lakh.

All these have a simple question: Why did the MADC come in? Why were they not allowed to sell their land directly to the builders and developers? For, in that case, they would have got a more rational compensation, say of at least Rs. 1 crore per acre. Social worker Baba Dawre, who has been representing farmers for all these years, alleges that the MADC is involved in land grabbing for the benefit of builders and developers and at the cost of genuine welfare of the farmers.

Open letter to the Government of Maharashtra, Chief Minister, Deputy Chief Minister, Ministers, Legislators, and Officials

* A blatant loot of farmers’ precious land is going on by vested interests that are aiming to make hundreds of crores of rupees by  selling the same to non-SEZ buyers at shockingly high cost

** What is strange, political leaders in power and in Opposition have kept quiet about the land grab scandal.

***Why this silence?We are asking these questions as People’s Paper

Honourable friends,

IT is after a deep thought that we have opted to write this open letter to highlight a major issue and seek your indulgence in correcting a huge wrong being perpetrated in Nagpur by way of the Special Economic Zone (SEZ) promoted by Maharashtra Airport Development Company (MADC). If we fail to act fast, if we do not step in to stop the loot that has been going for a long time in the name of development, a mega scandal will explode here. The purpose of this letter is to bring to the notice of one and all how a scandal is brewing here by way of the SEZ that is being touted as Nagpur’s signature project on Wardha Road.
At the outset, we must thank people of this region for giving us unflinching support in our relentless campaign against a massive land grab scandal at the cost of defenceless farmers who have been made to sell their precious lands for a pittance for the uncouth benefit of builders. We must thank the people for understanding the importance of our efforts.
But we must also make this appeal to the leading lights of Maharashtra Government, Legislators and bureaucrats to understand the ugly reality in the SEZ land grab scandal and act fast to stop the loot.
A detailed study of the project has led us to believe that under the pretext of developing SEZ, a blatant loot is going on of farmers’ precious land by vested interests that are aiming to make hundreds of crores of rupees after developing the property and selling the same to interested buyers at shockingly high cost. In the process, farmers are left high and dry with only a few pennies in their pockets, by violating the law that governs Special Economic Zones.
‘The Hitavada’ is not at all against development. On the contrary, we have supported all genuine developmental activities wholeheartedly. Yet, the happenings in Nagpur do not allow our conscience to keep quiet when a loot is going on.
Our concern is simple: Development cannot take place by exploiting the poor and the defenceless farmers. For example, farmer Bhagwan Dahane was made to sell his land for a paltry sum of Rs. 3 lakh per hectare (that is, around Rs. 1.5 lakh per acre) to MADC, which then sold the same to prospective builders -- Ms. Reatox Builders and Developers Pvt. Ltd -- for around Rs. 70 lakhs per acre. Of course, let us not overlook the fact that just a few kilometers away, a celebrated family of Nagpur had sold its agricultural land to a builder for a whopping Rs. 2.5 crore per acre around the same time. Obviously, honourable friends, the MADC was virtually giving away farmers’ land for a small change (Rs. 70 lakh per acre against Rs. 2.5 crore).
This was where the loot began. If the farmers had sold their land directly to developers, they would have got a market price. But then, the MADC threw on their faces small change and gave their land to developers for ruthless exploitation.
This land grab scandal is taking place for the past some years in a near-total violation of the SEZ Act. A Special Economic Zone is a niche concept. The zone is carved out for special purpose. Outsiders are not allowed into it. It also has its own housing policy. Houses are constructed solely for the people employed in enterprises in the SEZ, and outsiders are not allowed to own property in the SEZ colonies.
Yet, the MADC gave Ms. Reatox Builders and Developers Pvt Ltd permission to sell flats to non-SEZ persons. In one affidavit, it said, such a sale is not permitted. But through a letter to Reatox, Mr. R.C. Sinha, Vice Chairman and Managing Director of MADC, granted Reatox the permission to sell the flats to anybody anywhere!
The nexus is obvious here: The law does not permit, but Mr. Sinha does. Is he above law? But he is smart. He refused to take the blame to himself. He said, in effect, all decisions belong to the Board of Directors of the MADC of which the Chief Minister (then Mr. Vilasrao Deshmukh) is the ex-officio Chairperson. So, empowered by Mr. Sinha, ‘First City’ -- the Reatox project -- starts an advertising blitz trying to sell flats to non-SEZ persons.
Of course, the SEZ is a failure. Except a few enterprises (like Satyam), there have been no takers. Since its inception, the SEZ has not attracted genuine investment. Some enterprises came, got land, and vainished into thin air. Naturally, as one may assume correctly, after some time, the land will go to builders to develop townships where ‘outsiders’ will come in through the back door.
This is the land grab scandal in the offing. ‘The Hitavada’ has learnt that a few more builders, too, are moving in in due course. Thus, land grab and loot will continue with the blessings of Mr. R.C. Sinha. Reatox is only a test case.
Yet, Mr. Sinha, Vice-Chairman and Managing Director of MADC, does not seem bothered. He has made all sorts of concessions to Ms. Reatox to make its work easy. He has granted it the “permission” to sell flats to non-SEZ persons (which is illegal). He has given Reatox additional plots of land under this or that pretext (which is perplexing, to say the least). He has given the developer loans to complete the project (which, too, is perplexing). He has given banks the MADC guarantee as a protection against non-repayment of loan!...
‘The Hitavada’ has been highlighting all these aspects of the patently illegal activities in SEZ. After investigations, we have come to believe that MADC super boss Mr. R.C. Sinha is granting special favours to Reatox even by violating legal provisions, rules and regulations. And this is happening at the cost of poor farmers who have been left with no alternative but to sell their lands for pittance to developers who are out to make obscene profits from the business.
It is patently illegal to acquire farmers’ land for SEZ and give it to private builders and developers.
Our concern is the welfare of the farmers who have lost their precious lands. Our concern is about not allowing cruel commercial exploitation of the farmers’ lands, which tantamounts to official loot. Our concern is for the right brand of development.
Our concern is also as to why the State Government is in a deep slumber still. For, Maharashtra’s Chief Minister is the Ex-Officio Chairperson of the MADC. His name is involved in this project with countless violations of rules. Why has not he woken up still?
No law of the land can allow such a loot. India has often debated the brand of development it must adopt. Mahatma Gandhi had said, in effect, development is a process that provides for the need of the common people, and not the greed of the select few. In SEZ and First City, the Mahatma’s thinking has been thrown out of the window.
Just on December 7, 2010, Neera Yadav, former Chief Secretary of Uttar Pradesh, was sent to serve a four-year prison term for involvement in illegal land allotment. The beneficiary of the scandal, one Ashok Chaturvedi, too, has been sentenced to a jail term.
If this can happen in Uttar Pradesh, then why can’t Maharashtra take steps to stop the loot in the name of development?
At SEZ, most things have been done under the cover of rules. Yet, most rules have been twisted out of shape to benefit a handful few. Documentary evidence is available not in the secret files of the MADC but on the websites of various governmental agencies. All we have done is to pick up those points and interpret those to expose the wrong.
The Government of Maharashtra is already engaged in a huge cleansing exercise. There is a need to include Nagpur’s SEZ in that cleansing exercise immediately.
What is strange, political leaders of parties in power and in Opposition have kept quiet about the land grab scandal in Nagpur. What is the reason of their silence?
We are asking these questions as People’s Paper, their voice. It is time the Government conducted a thorough probe into the SEZ land grab affair and considered possibilities of launching criminal proceedings against the guilty.
 

Yours sincerely,
Vijay Phanshikar,
Editor

Mihan-Land Scam-Indicted by CAG, R C Sinha now drags Vilasrao’s name in Satyam land deal-HITAVADA

Mihan-Land Scam-Indicted by CAG, R C Sinha now drags Vilasrao’s  name in Satyam land deal

** Emboldened by inaction by Govt, Oppn,   MADC   now questions veracity of CAG report

Staff Reporter

STRANGE are the ways of babudom. While accepting bouquets they are on the forefront but the brickbats are promptly shifted to others. Adopting the same principle R C Sinha, Vice-Chairman and Managing Director of Maharashtra Airport Development Company (MADC), indicted by Comptroller and Auditor General (CAG) for extending undue benefit of Rs 20.21 crore to Satyam Computer Services Limited by sale of land at lower rates, has now dragged the name of then Chief Minister Vilasrao Deshmukh in controversial Satyam land deal. Emboldened by failure of opposition and State Government to take any action despite CAG strictures, the MADC in a sworn affidavit has questioned even the very basis of CAG report chiding MADC for allotting cheap land to Satyam.

The CAG report, tabled in the budget session of Maharashtra Assembly in April 2010, had blamed MADC bosses for causing massive loss to the State Government and indicted them for granting an "undue benefit" of Rs 20.21 crore to Satyam Computer Services Limited (SCSL). The "First come First serve" basis which attained notoriety in 2G spectrum scam, was also used by MADC while allotting land to Satyam only to invite stringent criticism from CAG.

The CAG has clearly observed that "The Company (MADC) had not formulated any policy for concessional allotment of land as an "early bird" incentive. Formulation of such a policy was necessary to ensure fairness and transparency in the Company’s sale of land policy." However, the MADC maintained that "Board of Directors of the MADC had taken a decision to allot land at a concessional rate to early birds/applicants."

Apparently to get over the CAG indictment, the MADC bosses have now dragged the name of then Chief Minister Vilasrao Deshmukh (who was ex-officio Chairman of MADC) to claim that allotment of land to Satyam was considered by Board of Directors on December 5, 2005. "In the said meeting 9 members of the Board of Directors of the MADC were present which included the Hon’ble Chief Minister of Maharashtra and the Chairman of MADC, Shri Vilasraoji D Deshmukh," the MADC claimed in its latest affidavit.

Technically, this may be correct. But in reality, Sinha has been the actual mover and shaker in all matters as regards MADC, which is a common knowledge and confirmed by MADC in its own affidavit.

The MADC affidavit narrated in detail efforts taken by R C Sinha to woo investors for MIHAN-SEZ but conveniently passed the buck to entire Board headed by then Chief Minister, obviously to get rid of CAG indictment to absolve Sinha from any direct responsibility.

The affidavit also gives a great detail about pains taken by Sinha to convince some of the leading IT industries like L&T Info City, Infosys, TCS etc and how land was offered to them at a very low price, but these companies refused to invest in Nagpur. "Satyam was also offered the land at Nagpur by the Vice-Chairman and Managing Director of the MADC. The officials of Satyam were not convinced with the rate offered to them as they were of the view that it was too high when compared with rates in other Tier II cities SEZs," the affidavit stated.

After hectic parleys and convincing Satyam that "the MADC is not selling only the land but is selling the infrastructure," the MADC pursued the matter with State Government and finally the land allotment to Satyam was considered by Board of Directors headed by ex-Officio Chairman and then Chief Minister Vilasrao Deshmukh. "After due deliberation and consideration, it was unanimously decided at the said Board Meeting dated December 5, 2005 that M/s Satyam be allotted land admeasuring 100 acres on a concessional rate of Rs 18 lakh per acre," the MADC has claimed.

Due to spillway of Telhara tank the roads were realigned and re-demarcated and remaining residual strip of 28.06 acre was offered to Satyam at Rs 22.35 lakh per acre since "no other industry would be interested in the residual strip of 28.06 acres," the MADC had claimed by way of justification.

Unfortunately for MADC and its bosses, the CAG had already refused to accept this feeble justification and tersely observed "allotment of additional land to Satyam Computers without the approval of Board of Directors was not justifiable in the absence of a policy regarding concessioal allotments." The affidavit has now tried to discredit CAG’s observation by claiming approval to early bird offer by Board of Directors on a non-disclosed date.

Incidentally, Sinha was Chairman of Maytas Infra Limited (a sister concern of Satyam promoted by the now incarcerated Ramlinga Raju) and hence the matter became all the more serious for clash of interest and allotment of prime land to Satyam. Sinha remained non-Executive Director and Chairman of Maytas Infra Ltd till January 2009 and tendered resignation of directorship and chairmanship of the company after the Satyam scandal rocked the country and its founder Ramalingam Raju was arrested for the biggest corporate fraud.

Expressing total ignorance about alleged link between M/s Satyam and M/s Maytas, the MADC has now claimed "On December 5, 2005, M/s Satyam and M/s Maytas were distinct and different entities and no one, including R C Sinha, knew about the alleged link between M/s Satyam and M/s Maytas. The alleged link was disclosed for the first time somewhere around January 2009."

VJAS urged Govt. to give MIHAN-SEZ Plant Power to Nagpur and Vidarbha

VJAS urged Govt. to  give MIHAN-SEZ Plant Power to Nagpur and Vidarbha

NAGPUR: December 4, 2010,

The decision of Nagpur Municipal Corpn.(N.M.C.)and Nagpur Improvement Trust (N.I.T.) owned flagship company MADC Nagpur Energy Private Limited (MNEPL)  with private participation to entered in Power Purchase Agreement (PPA) with  Reliance Power Trading Company to sell electricity generated from the first unit of its plant has offended  the Nagpur base activist group who are fighting for the smooth and cheap power in Nagpur and Vidarbha as even power is generated in Nagpur  in and around very heavy charges for transmission losses are being taxed to Nagpur and vidarbha consumers hence Vidarbha Janandolan Samiti(VJAS) has urged Maharashtra Govt. to give all power being generated in the  captive power plant of MIHAN-SEZ till being consumed locally SEZ units , Kishor Tiwari of VJAS informed in press release today.

‘One hand Nagpur Municipal Corporation  (N.M.C.) is planning set up own power plant to tackle power crisis of this up coming metro at the same time their own company MADC  is signing the PPA with Mumbai base  Reliance Power Trading Company, this is highly objectionable and unjust with power starved Nagpur and Vidarbha people, some undue interest are behind this deal is very much suspected hence we want scraping of PPA immediately’  Kishor Tiwari added.

It is reported that in  MIHAN-SEZ a joint venture company with MADC has  set up a power plant for captive supply to this ambitious venture, has now struck a deal with Reliance Power Trading Company to sell electricity generated from the first unit of its plant. The MADC Nagpur Energy Private Limited (MNEPL) is coming up with a 241 MW power plant with four units of 61.5 MW each. Generation in the first unit started around four days ago and has been synchronised with the grid. "Full-fledged production of 61 MW is expected to start within a fortnight," said a official of MADC Nagpur Energy Private Limited company.

MADC Nagpur Energy Private Limited company also revealed that there are good chances that all the power generated (from April next) here will be sold in the open market as there's unlikely to be much demand in Mihan. The second unit is expected to start by January and the remaining two in March and April.

"The power plant was set up with the aim of providing power to the industries coming up in Mihan. We were expecting that there would be a demand of at least 50MW. However, we are now exercising the option of supplying power in the open market," said the senior official.

‘As MADC Nagpur Energy Private Limited has set up this plant in Mihan-SEZ and enjoyed all tax and duty benefits, a coal linkage of over 10 lakh tonnes has been done in the name MADC for this plant being SEZ captive power plant, it is highly illegal for MADC to  go ahead with any power purchase agreement with any private power trading company without consulting the whole issue with N.MC. and N.I.,T. more over argument of  MADC Nagpur Energy Private Limited company that Selling in the open market is always a profitable proposition than being a captive vendor as it fetches higher rates is ridiculous ’ Tiwari said.

VJAS has urged Maharashtra Govt , Nagpur Municipal Corpn.(N.M.C.) and Nagpur Improvement Trust (N.I.T.) that power generated in Mihan-SEZ should not be sold out to any power trading company and should be given Nagpur and vidarbha consumers in subsidized  rates as MADC has come with tax payers of Nagpur city.’VJAS  urged .

Mihan Land Scam-Generous MADC grants Rs 990 cr land to Reatox in Rs 80 cr-Hitavada

Mihan Land Scam-Generous MADC grants Rs 990 cr land to Reatox in Rs 80 cr-Hitavada

By Manish Soni

MAHARASHTRA Airport Development Company (MADC), which is under fire for bestowing undue favours to M/s Reatox Builders and Developers, has again been caught on the wrong foot, this time for allotting to Reatox 45 acres of land whose market cost is close to Rs 990 crore, for a project worth only Rs 80 crore. In the process, the developer has been benefitted to the tune of Rs 910 crores. And as if this was not enough, the MADC, surprisingly, has also agreed to extend a loan of Rs 50 crore to the developer for execution of the project.

According to official documents, a tract of prime land, situated along Wardha Road at Mouza Khapri (Shankarpur Road) worth hundreds of crores of rupees, was given virtually free of cost to Reatox Builders for creating rehabilitation facilities for project-affected persons (PAPs) of Multimodal International Hub Airport at Nagpur (MIHAN) and Special Economic Zone (SEZ).

As per the bid invited by MADC, the bidder was to execute the work of rehabilitation which inter-alia included construction of social infrastructure like ITI, school, public health centre, talathi-gram panchayat office, samaj mandir, development of plots and construction of small houses of about 300 sq ft each for 680 PAPs. All these works have to be done by the successful bidder at his own cost. In return, for doing this work without any cost to MADC, the bidder was required to quote in how much land he would need for the multi-purpose project. Agrrment was that the MADC would pay for infrastructure like roads, water supply, sanitation, electricity, telecom.

Sources claim that the MADC has provided 45 acres of land for the purpose of development of residential or commercial development on a 99-year lease to the Reatox Builders. In addition, the MADC also provided 1.97 hectares of land outside the rehabilitation area for the purpose of development of residential or commercial development again on a 99-year lease, plus a 0.3 hectare land marked as commercial area for the purpose of construction of shops on a similar lease. The contractor, that is Reatox Builders, was expected to pay lease rent of Rs 41 per acre per annum in advance of the land given for 99 years. As per this clause, the developer was required to pay Rs 1804 per annum for the entire land and only Rs 1,78,596 in totality for land worth hundreds of crores.

Realty market experts claim that by a conservative estimate, the prevailing land rates along Shankarpur Road is around Rs 500 sq ft. Some other experts insist, it is upto Rs 750 per sq ft. Going by these rates, the MADC should have got at least Rs 22 crore for each acre of land, which would amount to a whopping Rs. 990 crores for the whole land admeasuring 45 acres. In reality, what Reatox is spending is only Rs. 80 crores.

As per the agreement, the developer was to complete the entire rehabilitation project within one year from the date of commencement (February 22, 2009, when Chief Minister Mr. Ashok Chavan had performed ‘bhumipujan’ of the project). Yet, even after a lapse of 22 months, the project is dragging on, well behind the point of completion. The project will need another three months at least of round-the-clock work to be complete.

Initially, the MADC had given Reatox a loan of Rs. 20 crores for rehab project. However, time-overrun also seems to have led to cost-overrun. In a letter to MADC on May 29, 2010, Reatox explained the reasons for delay: the compensatory 45 acres were under encroachment, and therefore could not be accepted as colateral for raising funds through banks. Then came the request: Give us additional Rs. 30 crores by way of extended loan limit. The developer also said reportedly that the delays encompass water and power supply schemes (that would take another 12 months to be completed). In turn, that would mean more delay in handing over the possession of residential flats of 300 sq ft each to 680 project affected persons. Continuing its complaining tone, Reatox asked the MADC to clear the encroachment within 7 days so that it could get going with the works.

It may be mentioned that as per agreement, the MADC agreed to give advance to the extent of Rs 20 crore at 12 per cent per annum interest rate on monthly basis. However, the board of directors of MADC has sanctioned Rs 50 crore citing various reasons like project cost increase and inflation which affected the project. The MADC resolved in the board of directors that even though the bid document provided grant of a clean advance of Rs 20 crore to the bidder, advance has been granted against actual rehabilitation work done at the site as certified by Project Management Consultant (PMC)

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Mihan Land Scam-MADC supports brazen violations by First City

Mihan Land Scam-MADC supports brazen violations by First City

Mihan Land Scam-MADC supports brazen violations by First City

MADC is turning Nelson’s Eye towards brazen violations by M/s Reatox Builders who are constructing First City project in non-processing zone of MIHAN-SEZ area. Despite a categorical provision about using housing units within SEZ only by persons directly connected with SEZ establishments and SEZ employees, the developer is going ahead with open sell to general public.

The latest guidelines issued by the Union Commerce Ministry (SEZ Division), for development of SEZs had stipulated clearly that housing facilities created in non-processing area could be used only by "persons who are working for establishments relating to SEZ developers, units and or are users of infrastructure facilities created in the SEZ."

Even, the Board of Approvals (BoA), the apex decision making body for SEZ, had consistently maintained that no developer or co-developer can sell the land or residential dwelling and extended this principle to First City coming up at MIHAN-SEZ promoted by MADC. The BoA in its meeting held on July 13, 2010 had directed the MADC to remove the "condition of sale" from the agreement between developer (MADC) and co-developer (M/s Reatox Builders) as well as from the Power of Attorney granted by MADC to M/s Reatox Builders which is coming with First City in MIHAN-SEZ. The Department of Revenue had consistently objected to open sale of housing units by developers and demanded that the condition of sale must be removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.

The MADC in its affidavit before the High Court had maintained that First City project is meant for SEZ employees only and had opposed relocating project affected persons in the project. But contradicting its own stance taken on affidavit, the MADC has now permitted M/s Reatox Builders "to sell the flats to anybody in the world." Several social organisations have already lodged strong complaints with the Chief Minister, Commerce Ministry and CBI to probe the nexus between MADC boss R C Sinha and M/s Reatox Builders.

The Vidarbha Jan Andolan Samiti (VJAS) has recently lodged a complaint with the CBI to probe "highly improper loan scheme extended by Vijaya Bank to First City project of M/s Reatox Builders." The VJAS has also requested Union Finance Minister, Reserve Bank of India and Finance Secretary to probe the role of Vijaya Bank top officials and find out whether there was any unholy nexus between developer and Bank, since the builder was offering flats within SEZ area to general public, flouting all norms.

According to VJAS, the Vijaya Bank has agreed to finance upto 90% of the housing value, which is contrary to Home loan norms finalised by RBI. No bank can lend more than 80% of the total value of the housing unit, the guidelines issued on November 3 has stated. Kishor Tiwari of VJAS while expressing surprise as to how a nationalised bank can show such a generosity towards First City project, which too is under cloud for selling flats to outsiders.

Posted by vidarbha times at 2:20 AM

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Ifs and buts not Good for MIHAN project, say Experts-TIME OF INDIA

Shishir Arya, TNN, Nov 27, 2010, 04.32pm IST

NAGPUR: Experts and stakeholders have a mixed view on Mihan. Even as industrialists and traders want it to happen soon, a section of players in the logistics business question the feasibility of such an ambitious project. There is a pressing demand for the government to come out clear on the fate Mihan, as many hopes, especially in the realty market, are attached to it.

"It is time that the pending issues are cleared and there is a clarity over the fate of the project which has taken an unimaginable delay. Specific information should be made available about the plans over major investments like the $100 million maintenance repair and overhaul (MRO) depot by Boeing," said Pravin Tapadia, president of the Vidarbha Industries Association.

Tapadia also called for running the MADC like a business corporate venture and even tapping the capital market. "The show here should be managed like a commercial organization with profit as a clear motive. This would perhaps lead to a faster implementation," he says.

Shivkumar Rao, the president of the Confederation of Indian Industries' (CII) Vidarbha Council, says though Mihan has been planned as a cargo hub where planes from different directions will land and redistribute the cargo, "the present conditions are not very encouraging for such a concept".

"Currently a higher amount of cargo is generated from the south and west while north and east lag behind. So, if planes from all four directions are to land here and redistribute the load, there are will not be enough planes from north and east to take back the cargo. There will be a major mismatch," Rao added.

However, the president of Boeing India, Dinesh Keskar is very optimistic. "This problem can be overcome by altering flight schedules," he says.

According to Keskar, the hub and spoke model has been successful in the US where FedEx and United Parcel Service operate in a similar manner. "Over there even if a parcel has to be reached just 100 kms away from the place of origin, it will first reach the hub from where it will be distributed. Such a model helps in reducing the overall duration of travel and leads to operational convenience," he added.

It needs a critical mass to develop such a project and lately it is India which is seen to have a potential for it. "Given its geographical location, Nagpur is the ideal site," said Keskar.

Rao, on the other hand, said that such a project will also need to have cargo generated from the place where it is located. "Though a special economic zone has been planned for the purpose the MADC has allotted land only to information technology companies and software parks where there is no physical transport of cargo," he said.

Leader of the project affected persons (PAPs), Baba Dawre has claimed the cargo hub can be an environmental hazard. It is not advisable to have such a set-up where several planes will land and take off so close to the city. Dawre is from the Shivangaon village which has been earmarked for the crucial second airstrip. The second airstrip will be used by the Indian Air Force (IAF) when it shifts to a new location. The IAF will not shift till the second airstrip is ready, which is also vital for the Boeing project to come up.

Residents of Shivangaon have been strongly protesting the takeover. Earlier they demanded a compensation of Rs 35 lakh an acre but now they are also pressing the airstrip to be deleted from the plan itself. "Let the SEZ come up and there is no need for the Cargo Hub," he said.

Read more: Ifs and buts not good for project, say experts - The Times of India http://timesofindia.indiatimes.com/city/nagpur/Ifs-and-buts-not-good-for-project-say-experts/articleshow/7000832.cms#ixzz16a61eUD3

VJAS demands CBI probe in First City Housing loan scam by VijayaBank-HITAVADA

VJAS demands CBI probe in First City Housing loan scam  by VijayaBank-HITAVADA

*90% Finance to First City is illegal, contrary to RBI norms

**Housing loans to outsiders flouting BoA decision is mega scam, alleges VJAS

Staff Reporter
After the bribe-for-housing loan was unearthed by CBI sleuths in which top finance executives were arrested, the Vidarbha Jan Andolan Samiti (VJAS) has requested the CBI to probe "highly improper loan scheme extended by Vijaya Bank to First City project of M/s Reatox Builders." The VJAS has also requested Union Finance Minister, Reserve Bank of India and Finance Secretary to probe the role of Vijaya Bank top officials and find out whether there was any unholy nexus between developer and Bank, since the builder was offering flats within SEZ area to general public, flouting all norms.
According to VJAS, the Vijaya Bank has agreed to finance upto 90% of the housing value, which is contrary to Home loan norms finalised by RBI. No bank can lend more than 80% of the total value of the housing unit, the guidelines issued on November 3 has stated. Already petitions have been filed before High Court alleging massive land scam in MIHAN-SEZ Nagpur promoted by Maharashtra Airports Development Company (MADC), Kishor Tiwari of VJAS pointed out while expressing surprise as to how a nationalised bank can show such a generosity towards First City project, which too is under cloud for selling flats to outsiders.
In fact, the Board of Approvals (BoA), the apex decision making body for SEZ, had consistently maintained that no developer or co-developer can sell the land or residential dwelling to any outsider and housing units can be leased only to the employees working with SEZ and extended this principle to First City coming up at MIHAN-SEZ promoted by MADC, the VJAS pointed out. But with help of free finance by Vijaya Bank this malpractice is continued hence we want RBI intervention, Tiwari demanded. By extending housing finance to purchasers other than employees of MIHAN-SEZ, even when the Centre has removed all ambiguity and has ruled that housing units within SEZ could be utilised only by persons directly connected with SEZ establishments and SEZ employees, Vijaya Bank has over-stepped its jurisdiction, the VJAS pointed out.
The Union Commerce Ministry (SEZ Division), in its latest guidelines for development of Special Economic Zones issued on October 27, 2010, has stipulated clearly that housing facilities created in non-processing area of SEZ could be used only by "persons who are working for establishments relating to SEZ developers, units and or are users of infrastructure facilities created in the SEZ," Tiwari stated.
Describing the housing finance by Vijaya Bank to First City project as another "mega housing loan scam," VJAS has requested CBI and RBI Governor to probe the role of
Albert Tauro, Chairman and Managing Director of Vijaya Bank. The complaint alleged that Vijaya Bank had extended credit to MADC on a condition that R C Sinha be continued as Managing Director and Vice-Chairman of MADC. This is very shocking and surprising as Sinha’s role in allotting land at a throwaway price to Satyam Computers when he himself was Chairman of Maytas- a sister concern of Satyam, VJAS complaint pointed out.
The VJAS has requested RBI to probe "Vijaya Bank housing loan scam in MIHAN-SEZ Nagpur promoted by MADC and stop ongoing mega finance to illegal housing and other projects in MIHAN-SEZ, Nagpur."

VJAS ask CM to order CBI probe against MADC, First City developer-HITAVADA

VJAS, activists ask CM to order CBI probe against MADC, First City developer

Staff Reporter

Apparently annoyed over brazen violation of directives issued by Board of Approvals (BoA) of Union Commerce Ministry to MADC and M/s Reatox Builders which is coming up with First City within MIHAN-SEZ area, not to sell residential units to outsiders, several organisations and activists have demanded stern action and fair probe into the issue.

Vidarbha Jan Andolan Samiti has charged the MADC bosses and M/s Reatox Builders with wanton irregularities and demanded a CBI probe into the alleged scam. Looking into the seriousness of the issue of allotting subsidised land, relaxation of all conditions, granting extra land at throwaway price and now open sale of flats, is nothing short of a major scandal and deserves thorough probe and CBI inquiry, the VJAS demanded in a detailed complaint dashed to new Chief Minister Prithviraj Chavan on Saturday.

M/s Reatox Builders bagged 31 acres of land for Rs 72 lakh per acre when a nearby land owned by the Patel family fetched a whopping Rs 2.55 crore per acre in one of the most expensive land deals in the region. If that is a market bench-mark, then the MADC could have earned close to Rs 75 crore from promoters of ‘First City’ project. Instead, the Government company received only Rs 22 crore. Who is responsible for this loss of Rs 53 crore? Several social workers of repute have alleged that MADC Vice-Chairman and Managing Director R C Sinha needs to come clean on this issue, since he has been the virtual face of MADC and MIHAN-SEZ all along.

MADC had permitted M/s Reatox to consume 2.5 FSI for ‘First City’ project within the SEZ to construct houses for "persons directly connected with SEZ." M/s Reatox Builders had planned 18-storied towers, but the Airports Authority of India (AAI) curtailed the height since it was in aircraft landing funnel area. Ostensibly to compensate for this loss of five floors in each of the proposed twelve towers, M/s Reatox got an additional tract of 10 acres of land, which surprised many.

"We are happy to note that you are keen to provide clean administration in Maharashtra and eradicate corruption hence I am forwarding the very serious issue regarding brazen abuse and on going corruption in MIHAN Nagpur by M/s Reatox Builders and Developers, in sale of upcoming First City residential project in MIHAN-Special Economic Zone. First City developers have not been authorised to lease the residential units also to persons from outside the SEZ area, as per law of the land but they are befooling people through major publicity campaign by claiming that they have been empowered by MADC to sale the flats to anybody in the world.

"These malpractice’s are being promoted by one of the nationalised bank by giving 90% loan as against Reserve Bank of India norms which set a limit on home loans, limiting the loan amount to 80 per cent of the property value," the VJAS complaint stated while expressing surprise as to how can a nationalised bank go beyond RBI guidelines. A separate complaint has been lodged already with the Union Finance Ministry and RBI.

Tiwari has urged Chvan to expedite the probe ordered by his predecessor and, if necessary, order a CBI probe.

Vigilant citizen Anil Wadpalliwar, too, has demanded immediate and stringent action against MADC bosses and First City Developers. The Chief Minister should intervene and stop the illegal construction and sale of flats to gullible public, he demanded while seeking an impartial probe into all land allotted by MADC MD R C Sinha. Since Chief Minister is ex-officio Chairman of MADC, he must ensure that his personal image is not tarnished due to First City Scam, Wadpalliwar has stated in his complaint.

Prof. Ajay Patki of Swadeshi Jagran Manch has demanded complete audit of land allotted within MIHAN-SEZ. Citing recent Vedanta judgement of Orissa High Court, Prof Patki stated that audit will reveal, malpractice’s and favours, if any, shown to a chosen few.

Several organisations which have already approached High Court against MADC’s land scam and particularly lands allotted to Satyam and First City, too have demanded stern action against erring officers and developers violating all norms.

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MIHAN-FIRST CITY SCAM-Commerce Ministry removes all ambiguity: Housing within SEZ only for employees -Hitavada

Commerce Ministry removes all ambiguity: Housing within SEZ only for employees

By Manish Soni

After receiving several complaints about misuse of subsidised land within SEZ area by housing projects, the Centre has removed all ambiguity and has ruled that housing units within SEZ could be utilised only by persons directly connected with SEZ establishments and SEZ employees.

The Union Commerce Ministry (SEZ Division), in its latest guidelines for development of Special Economic Zones issued on October 27, 2010, has stipulated clearly that housing facilities created in non-processing area could be used only by "persons who are working for establishments relating to SEZ developers, units and or are users of infrastructure facilities created in the SEZ."

The guidelines signed by G Muthuraja, Under Secretary, Ministry of Commerce, have directed all developers of SEZs to ensure that "Developer should rent out these houses to the employees of units. The units could take these houses on long-term lease for renting out to their employees. In case a unit, having houses on long lease closes down, these can be transferred to other working units or the developer."

In fact, the Board of Approvals (BoA), the apex decision making body for SEZ, had consistently maintained that no developer or co-developer can sell the land or residential dwelling and extended this principle to First City coming up at MIHAN-SEZ promoted by Maharashtra Airports Development Company (MADC).

The Developer shall not sell the land in a Special Economic Zone," this is the mandatory provision of Special Economic Zone (SEZ) Act and rules framed thereunder. Therefore, the BoA in its meeting held on July 13, 2010 had directed the MADC to remove the "condition of sale" from the agreement between developer (MADC) and co-developer (M/s Reatox Builders) as well as from the Power of Attorney granted by MADC to M/s Reatox Builders which is coming with First City in MIHAN-SEZ. The Department of Revenue had consistently objected to open sale of housing units by developers and demanded that the condition of sale must be removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.

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Despite CAG indicting MADC boss R C Sinha for land allotment to Satyam, why Govt, Oppn are silent

Despite CAG indicting MADC boss R C Sinha for land allotment to Satyam, why Govt, Oppn are silent


-First come First Serve Basis allotment led to removal of A Raja, but Sinha, who is indicted by CAG on same ground, got an extension as MADC Vice-Chairman and MD?
-CAG report blames MADC for extending undue benefit of Rs 20.21 crore to Satyam Computer Services Limited by sale of land at lower rates
-Incidentally, R C Sinha was Chairman of Maytas Infra, a sister concern of Satyam when the land and adjoining lake was allotted to Satyam, attracting CAG rap

By Rahul Pande

WHILE the Opposition is insisting on strict action against ex-Telecom Minister A Raja in the 2G spectrum allotment scam after the Comptroller and Auditor General’s (CAG) report confirmed the massive loss, the very same opposition is conspicuously silent over another major scam unearthed in a CAG report revealing loss of Rs 20.21 crore in land allotment to Satyam Computer Services Limited by MADC MD R C Sinha. The CAG report was tabled in the budget session of Maharashtra Assembly in April 2010 which clearly blamed MADC bosses for causing massive loss to the State Government and indicted them for granting an “undue benefit” of Rs 20.21 crore to Satyam Computer Services Limited (SCSL). The “First come First serve” basis which attained notoriety in 2G spectrum scam, was also used by MADC while allotting land to Satyam and invited stringent criticism from CAG. The CAG report had also slammed MADC for land allotment to a chosen few without formulating a proper policy and without approval of its own Board.
Incidentally, Sinha was Chairman of Maytas Infra Limited (a sister concern of Satyam promoted by the now incarcerated Ramlingam Raju) and hence the matter became all the more serious for clash of interest and allotment of prime land to Satyam. In fact this clash of interest and involvement of Sinha in MADC and Maytas has made the matter far more serious. But curiously, the ruling party and the opposition, which usually leaves no chance to attack the Government, remained tight-lipped for reasons best known to them and Sinha continues to be the Managing Director of MADC and joint venture Mihan India Private Limited (MIPL), in which MADC has 51% stake, while Airports Authority of India has 49% stakes. The MADC registered MIPL as private limited company and was rightly pulled up by Union Civil Aviation Ministry for this blunder. In effect, a private limited company, accountable to none, became owner of the airport with its assets. Ironically, Sinha who retired a decade ago, was granted extension, again without permission of the High Court, which is mandatory according to the judgment of Aurangabad bench of Bombay High Court.
This scandal became murkier when farmers and social activists revealed that MADC had allotted land to Satyam in such a manner that a 130 acre lake would be automatically in possession of Satyam without paying a penny. The MADC was never able to justify the action and feebly claimed that they badly required an anchor project for MIHAN and hence concessional rate was offered to Satyam.
The CAG report made it crystal clear that Satyam was given land at a rate much lower than the existing market price for the MIHAN. And Satyam was given the concession without the approval of the board of directors of the Maharashtra Airport Development Company (MADC), nodal agency for the project.
The land in question was forcibly acquired from the farmers for a pittance and the CAG report had clearly established as to how Sinha allotted land to Satyam- while he remained head of its sister concern, again at a throwaway price, without following rule book.
While selling land to various companies to establish their facilities at the Special Economic Zone (SEZ) in Mihan, the rate finalised by the board of directors was Rs 24.28 lakh per acre.
However, SCSL was given land at the rate of Rs 18 lakh per acre. It resulted in a loss of Rs 6.28 crore for the MADC, and subsequently for the government. On the other hand, Shapoorji Pallonji and Company Limited (SPCL) had to buy land at Rs 26.3 lakh per acre — a rate higher than the quoted price.
After the first deal at a discounted rate in 2005, SCSL made a request for additional land. The company was allotted 28.06 acres of additional land at the rate of Rs 22.35 lakh per acre in March 2007. This was again done without the approval of the board of directors.
The market price during 2005-06 was Rs 72 lakh per acre, as offered by a private developer for the non-processing zones. The irregularity led to a revenue loss of Rs 13.93 crore. The total loss in the two deals was Rs 20.21 crore, the CAG report has said.
In its clarification to the CAG, the MADC management has said that the first allotment to SCSL and the SPCL deal was not made on the same day. However, the CAG refused to buy this logic.
“Advertisement for the land was given in December 2004, while the Centre approved the SEZ in August 2005. It is true that the allotments to SCSL and SPCL were not done on the same day, but both proposals were approved in the same meeting on December 5, 2005,” the report said.
Sinha continued to be non-Executive Director and Chairman of Maytas Infra Ltd till January 2009 and tendered resignation of directorship and chairmanship of the company after the Satyam scandal rocked the country and its founder Ramalingam Raju was arrested for the biggest corporate fraud.
According to some social activists, R C Sinha had admitted that he was director of Indu Developers and has been on Bengal Ambuja board for eight years. This company is a joint venture between West Bengal Housing Board and the Gujarat Ambuja Cements Limited. Indu Developers and Ambuja Realty are reported to have been allotted Mihan land at much cheaper rates, the activists claimed. This has apparently raised a serious question-mark over land deals struck by Sinha and various companies in which he was occupying high positions.
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Satyam and Maytas

Ramalingam Raju, founder of Satyam Computers floated another company-Maytas Infra by reversing alphabets and Sinha was Chairman of Maytas till January 2009. Incidentally, Satyam after purchasing land surrounding lake at highly concessional price and entire lake without paying a single penny, did not proceed any further. The land is lying idle since last five years and apparently the detailed project report was not submitted. As per the Industrial land allotment policy, the company has to start operations within three years and follow its project report, but Satyam has done nothing till today.

BJP involvement in 'ADARSH LAND SCAM' creates problem for Nitin Gadkari

BJP is likely to face more humiliation and  when untold story that BJP National president is himself derectely and indirectely involved for three more flats  for Ajay  Sancheti,  , who is member of the BJP’s national executive and a close confidant of party president Nitin Gadkari abrother of party state unit general secretary and and BJP’s Malakapur legislator, Chainsukh Sancheti as flies for allotments to sancheti's Son premveer and driver madke clear indicates vested interest of BJP leaders who are asking chief minister Ashok chavan for removal on morality and misuse of power as cases of sancheti brothers are as malafide as cases of Ashok chavan and miltary officers moreover role of BJP National president in the sancheti's case is more shocking as he himself asked City Collector I A Kundan for granting flats even after it was rejected earlier being non-qualified applicant .here are stories related BJP leaders involvement in ADARSH LAND SCAM.

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BJP leaders’ relative owns flat in Adarsh

http://www.hindustantimes.com/BJP-leaders-relative-owns-flat-in-Adarsh/Article1-622444.aspx

After the Congress, the NCP and the Shiv Sena, now Bharatiya Janata Party (BJP) leaders are getting linked to the controversial Adarsh housing society in Colaba.

Paramveer Abhay Sancheti, who is related to some senior BJP leaders, has been allotted a flat in the 31-storey tower, which has been built flouting environmental norms.

Paramveer is related to the BJP’s Malakapur legislator, Chainsukh Sancheti, as well as the party’s Mission Jharkhand in-charge, Ajay Sancheti.

When contacted, Chainsukh denied that he had any links with the society, but he did not deny his relationship with Paramveer.  He ended the phone conversation abruptly and he did not answer calls later.

State BJP spokesperson Madhav Bhandari said Paramveer was a distant relative of the MLA. “I don’t deny that Paramveer and his father are BJP sympathisers,” he said.

Ajay, who is member of the BJP’s national executive and a close confidant of party president Nitin Gadkari, said Paramveer is the son of his distant uncle. “Paramveer’s father Abhay is my father’s cousin and I in no way influenced the society to give him membership,” said the businessman from Nagpur. “Abhay is also Chainsukh’s father’s cousin.”

Ajay said Paramveer’s family also lives in Nagpur. Paramveer and his father Abhay could not be contacted.

Krishnarao Bhegade, who was with the BJP a few years ago, also has a flat in the society, but it could not be confirmed whether his membership was approved while he was with the BJP.

http://www.hindustantimes.com/StoryPage/Print/622444.aspx

© Copyright 2010 Hindustan Times

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here is news item published by another national daily exposing BJP national president close friend money manager   Ajay Sancheti's involvement in Adarsh land scam  pionting finger to shri Nitin Gadkari himself 

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Earns Rs 8,600 per month, owns Rs 5-cr flat

Shalini Nair Posted: Nov 05, 2010 at 0213 hrs

Mumbai Defence officials, bureaucrats, politicians and their relatives, it seems, are not the only ones to have secured apartments in the controversial Adarsh Co-operative Housing Society in Mumbai’s Cuffe Parade, one of Asia’s most expensive patches of real estate.

Investigations by The Indian Express have found that the 103 members in the 31-storey building include a driver employed in a Nagpur-based infrastructure company, whose Managing Director is a Special Invitee to the BJP’s National Executive Committee.

The name of the driver, Sudhakar Laxman Madke, 50, appears in the 2003 membership list of Adarsh alongside that of his employers: Abhay H Sancheti, Chairman of SMS Infrastructure Ltd; Vice-Chairman and Managing Director Ajay Sancheti; and Joint Managing Director Anand S Sancheti. The 43-year-old firm is one of the largest infrastructure firms in central India and is involved in the construction of highways, railways, dams and in coal mining.

But the names of the three Sanchetis were not approved for membership by City Collector I A Kundan — who herself has an apartment in Adarsh — on the grounds that their monthly salaries were between Rs 1 lakh and 4.5 lakh, which is well above the income limit of Rs 12,500 specified under rules.

State government rules stipulate that civilians seeking membership of a housing society coming up on government-allotted land should not have a monthly salary of more than Rs 12,500. This aims to ensure that preferential allotment of flats should benefit people who cannot afford expensive houses in the financial capital.

Documents with The Indian Express show that Madke remained on the list for the sea-facing apartments costing upwards of Rs 60 lakh as his monthly salary was Rs 8,600, including a basic salary of Rs 2,550. The market value of his 650 sq ft apartment today is around Rs 5 crore.

Four years later, in 2007, Paramveer Sancheti, the then 19-year-old son of Abhay Sancheti, tried to get on the Adarsh membership list. However, even his application was rejected in July 2008 by Kundan.

This time, she cited rules that mandate that an applicant’s income eligibility should be decided based on the entire family’s income over a 36-month period and Paramveer’s family income over this duration exceeded the prescribed limit.

But exactly a year later, in July 2009, another letter signed by Kundan says that Paramveer’s name had been approved for inclusion as a member of Adarsh. Kundan refused to respond to any questions related to Adarsh when contacted today by The Indian Express.

While Madke could not be reached for his comments, Abhay Sancheti denied his company’s driver was being used as a proxy owner for an apartment in Adarsh. “We decided to loan money to Madke. Since property values in Mumbai are very high, he can rent the house and easily repay his loan. As for my son, I can shell out the cost of his flat,” Sancheti told The Indian Express

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sources close to sancheti brothers reveled that Madake's flats has been gifted to BJP National president by AJAY SANCHETI and this is reason whole BJP will be on back foot in coming days and cover up operation  has already started at all party level.
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Brazen abuse of SEZ land by ‘First City in MIHAN Nagpur ’-HITAVADA

Brazen abuse of SEZ land by ‘First City in MIHAN Nagpur ’-HITAVADA

Brazen abuse of SEZ land by ‘First City’-HITAVADA

1) Why was the 31-acre land given at a subsidised rate to M/s Reatox and who is responsible for the huge loss to the state exchequer ?

2) Why were another 10 acres given free of cost to M/s Reatox?

3) Why is the MADC turning a Nelson’s eye towards open sale of flats to  general public by M/s Reatox in violation of BoA approvals and its own affidavit ?

The land allotment to M/s Reatox Builders (promoters of ‘First City’ project) at a highly subsidised rate by Maharashtra Airport Development Company (MADC) within MIHAN-Special Economic Zone (SEZ) and brazen act of the builder to sell flats to general public, has raised a serious question mark over legal permissibility of the entire act. The very action of MADC to allot to a builder the agricultural land acquired from farmers for peanuts, and subsequently to allow the builder to sell the same to general public at market rate and earn mind-boggling profit, is nothing but a massive abuse of public property for the benefit of private few, apparently with the blessings of MADC top bosses, who are now maintaining a conspicuous silence.

M/s Reatox Builders bagged 31 acres of land for Rs 72 lakh per acre when a nearby land owned by the Patel family fetched a whopping Rs 2.55 crore per acre in one of the most expensive land deals in the region. If that is a market bench-mark, then the MADC could have earned close to Rs 75 crore from promoters of ‘First City’ project. Instead, the Government company received only Rs 22 crore. Who is responsible for this loss of Rs 53 crore? Several social workers of repute have alleged that MADC Vice-Chairman and Managing Director R C Sinha needs to come clean on this issue, since he has been the virtual face of MADC and MIHAN-SEZ all along.

The land was acquired from protesting farmers who were offered a pittance for Meghdoot project of CIDCO and later handed over to MADC with an intention to create integrated MIHAN-SEZ. However, to the shock of everybody, the land was offered to realty majors who, in turn, are allowed to encash the current realty boom on land offered to them at a highly subsidised price and in many cases without inviting tenders. Several organisations fighting against such acquisitions have charged MADC with arbitrariness and lack of transparency and undue favours to a select few with the blessings of MADC top brass and their powerful mentors.

MADC had permitted M/s Reatox to consume 2.5 FSI for ‘First City’ project within the SEZ to construct houses for “persons directly connected with SEZ.” M/s Reatox Builders had planned 18-storeyed towers, but the Airports Authority of India (AAI) curtailed the height since it was in aircraft landing funnel area.

Ostensibly to compensate for this loss of five floors in each of the proposed twelve towers, the MADC then showed utmost generosity towards M/s Reatox and awarded an additional tract of 10 acres of land free of cost. Going by the then prevailing market rate on Wardha Road, this land was worth Rs 25 crore. This land was given to the builder (co-developer) in lieu of the AAI curtailment of the tower-height.

Was there any clause to such effect in the MADC-Reatox agreement, and what is legal sanction to such an agreement? -- is the main question.

Sources claim that the MADC Board of Directors had permitted 2.5 FSI to the developers and it was the responsibility of the builder to construct its building within permissible parameters. If the AAI directive has forced an alteration in the original building plans, it was obvious that the builders had not adhered to the parameters. In such a case, how does the MADC find itself responsible for that lapse, so much so as to offer the builder an additional tract of land free of cost? Was this done for reasons of someone’s hidden agenda?

Apparently, the collusion between MADC and promoters of ‘First City’ is crystal clear as the Special Purpose Vehicle appeared to have bent the rules and looked elsewhere to allow illegal action of builder in selling flats to general public. What is legal sanction behind this bail-out of ‘First City’ when the BoA clearly states that the approval to the project is absolutely restricted to selling the property only to people employed in various units that would be coming in SEZ?

If the land was to be used to house workers/officers and others working in SEZ units, the subsidised land rate could have been justified. But violating the original permission granted by Board of Approvals (BoA) and MADC’s own affidavit before the High Court, the builder is openly selling these flats to general public as per prevailing market rate and in the process earning huge profit at public cost-since MADC had spend huge public money to create basic infrastructure within SEZ and the builder is not required to spend a single penny from his pocket on this count.

Interestingly, ‘First City’ promoters always maintained that flats are meant for general public, clearly suppressing that they had a mandate to construct housing facilities for employees working within SEZ. This wilful breach of condition and regulatory permissions naturally has civil and criminal consequences and the MADC and M/s Reatox Builder may have to face the music.

The expose by ‘The Hitavada’ has put the developer - MADC - and co-developer - M/s Reatox Builders - in a tight spot. Unable to justify the brazen violation of SEZ Act/rules and open sale to general public, the builder issued misleading statements explaining nothing. However, the non-denial seems aimed at skirting the main issue as to how subsidised land offered for housing projects exclusively for SEZ employees can be sold to outside public ignoring BoA directive. Incidentally the MADC, too, has adopted a very ambigious stance claiming that project was approved by BoA - a fact nobody has questioned.

But this has raised a disturbing question about conduct of the MADC and its nexus with builders about misusing subsidised land for profiteering.

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