DoR missive puts MIHAN residential project- First City, in deep trouble
DoR missive puts MIHAN residentialproject- First City, in deep trouble
THE first project in the first multi modal SEZ in the city - First City - has landed in deep trouble with the Board of Approval (BoA), Ministry of Commerce, refusing to grant permission for ‘transfer of approval in respect of authorised operations in favour of M/s Reatox Builders and Developers Private Limited, a co-developer in the SEZ’.
The DoR wants MADC to remove the ‘condition of sale’ from the agreement between developer and co-developer as well as from the Power of Attorney granted by MADC to the co-developer Reatox Builders.
Representatives of the DoR pointed out that agreement of MADC with all its co-developers have been found to contain the condition that the flats built by such co-developers would be sold by them to public and MADC has issued Power of Attorney to such co-developers for such sale.
The DoR representatives also pointed out, in the present case, the developer has come to transfer its authorised operations to co-developer without modification in the condition of sale of property.
‘The DoR does not agree to the proposal unless the condition of sale is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC’ states the missive.
The Maharashtra Airport Development Company Limited (MADC), Developer of the MIHAN SEZ in Nagpur, had requested for transfer of approval in respect of authorised operations in favour of M/s Reatox Builders and Developers Private Limited.
The matter came up before Board of Approval (BoA) during its meeting held on July 13. The BoA after deliberations, decided to grant approval for transfer of the authorised operations, earlier granted to the developer, in favour of the co-developer, subject to the condition that the ‘Condition of Sale’ is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.
The authorised operations include housing phase-I as per the plan provided by the Developer with total number of 2082 flats with a built up area of 2,75,000 square metres, low income houses, convenient shopping units, 180 houses with a total area of 11,312 square metres, and Club House in the housing phase-I with an area of 2,035 square metres.
The above mentioned SEZ was notified on May 29, 2007, on an area of 1511.51 hectares. Subsequently an additional area of 66.90 hectares was notified, thereby making the total area of the SEZ as 1578.41 hectares. M/s Reatox Builders and Developers Private Limited was approved as a co-developer vide LoA dated January 5, 2009.
The developer was granted approval for carrying out certain authorised operations in the non-processing area by the BoA in its various meetings. The developer has, now, requested for grant of approval for transfer of these authorised operations in favour of the co-developer Reatox Builders which the DoR has tersely refused.
First City, the ambitious residential project by MADC in MIHAN SEZ, had earlier also faced flak from the Airports Authority of India (AAI) for the proposed height of the buildings after which about 5 floors had to be reduced from the original plan of 18 floors.
When contacted, Project Manager of Reatox Builders Bhaduri feigned ignorance about the devilment and said that only head office people can comment on it. Despite repeated efforts, Atul Shirodkar, MD of Reatox Builders could not be contacted, as he is reportedly out of country.