“It is surprising to note that how the land which is meant for residential accommodation of working professional at SEZ has been given to Reatox Company for sale/lease in open market to investors and capitalists who all have invested crores of rupees in the said township? This all needs to be probed by CBI and all culprits need to be booked under relevant provisions of law for cheating the public at large, especially the Project Affected People - Farmers of the regions
‘First City’ violates BoA directive about purchasers
Nagpur-30th July 2010
“The representative of Maharashtra Airport Development Company (MADC) made a brief presentation on the requests of the authorized operations in the SEZ, indicating the quantum and justifications of these activities. He also informed that about approximately 1,20,000 employees will be serving in this SEZ when fully developed. After deliberations, the Board approved following activities/operations in the SEZ for 100% consumption of the SEZ users: 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 meters.” (Page 4- Minutes of the 16th meeting of the SEZ BoA held on August 8, 2007)
This revelation comes in the minutes of 16th meeting of the Board of Approvals (BoA) held on August 8, 2007. It clearly reveals that First City project of M/s Reatox Builders routed through MADC was approved by BoA with a clear understanding that all the residential dwellings so constructed would be sold to employees working in SEZ.
The BoA had also approved construction of 10,000 houses in Phase-II total built up area not exceeding 17,00,000 sq mt, again with crystal clear direction that same would be available for persons directly connected with SEZ.
Thus, there was no ambiguity about end-users of housing projects coming up within non-processing zone of the notified SEZ area. Ignoring this fact, the developer (MADC) permitted all co-developers including M/s Reatox Builders to sale flats built by such co-developers to public and MADC had issued power of Attorney to such co-developers for such sale, the BoA recorded in its minutes with a stern directive to remove such “condition of sale from agreement” while granting co-developer status to M/s Reatox Builders.
It may be recalled that 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 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. M/s Reatox Builders and Developers Private Limited was approved as a co-developer vide LoA dated January 5, 2009.
The ‘First City’ project was launched with much fan-fare on November 4, 2007 and was expected to be completed within 27 months as per the term of lease. Initially, ‘First City’ was to have 12 building of 18 floors each. However, the Airports Authority of India raised strong objection to such a height stating that project was situated in funnel area of airport and would pose danger to aircraft’s landing at Nagpur airport. This forced M/s Reatox to lower the height by five floors and redesign the project.
Interestingly, M/s Reatox Builders and their marketing company Disha Direct had claimed that flats are available for Nagpurians and have undertaken a special drive to sell these flats to general public ignoring the clear and consistent directives of BoA.
VJAS seeks PM’s intervention
Vidarbha Jan Andolan Samiti has sought immediate intervention of Prime Minister Dr. Manmohan Singh in the matter of allotting land inside the SEZ to real estate companies like M/s Reatox Builders and Developers Private Limited at a throwaway price. In a letter addressed to the Prime Minister, VJAS Chief Kishor Tiwari has levelled serious charges against promoters of MIHAN-SEZ for favouring M/s Reatox Builders and for turning nelson’s eye towards brazen violation of SEZ Act and rules by promoters of First City project by utilising land acquired from farmers for peanuts to earn huge profits.
VJAS has also demanded a CBI probe and alleged that land given to M/s Reatox Builders, promoter of First City was a “glaring example of gross misconduct in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses, at a throwaway price to M/s Reatox due to closed link with politicians.”
“It is surprising to note that how the land which is meant for residential accommodation of working professional at SEZ has been given to Reatox Company for sale/lease in open market to investors and capitalists who all have invested crores of rupees in the said township? This all needs to be probed by CBI and all culprits need to be booked under relevant provisions of law for cheating the public at large, especially the Project Affected People - Farmers of the regions,” VJAS demanded.