‘Bldr got Kalina plot lease for a song in varsity library case’

MUMBAI: The Anti-Corruption Bureau (ACB) has submitted reports from the MMRDA and consultants to show that the land was leased out at ten times lower than the market value to the private developer in the Kalina library case.
The ACB’s contention is that there was “huge losses” to the exchequer in construction of the Mumbai University’s library. Chhagan Bhujbal, as the public works department (PWD) minister in the Congress-NCP government, had issued tenders in 2009 for the construction of the library.Bhujbal then appointed his chartered accountant Ravindra Sawant for bid evaluation. A deal was struck with a leading developer, who also got the lease of a 7,000 sq m plot for 99 years at Re 1 per sq m, which the ACB said was below the market price. The property is adjacent to BKC and if the property had been sold at the prevailing rates it would have generated huge profits for the government, said officials.
The MMRDA has sent reports to the ACB citing examples of five private companies, which bought the plots in the same vicinity at a much higher price. “The state agency has stated that in 2008-2009 the market value of the Kalina plot was Rs 5.5 lakh per sq m and the corresponding figure for plots in the interior was Rs 3.5 lakh per sq m. The PWD leased out the 7,000 sq m plot to a private developer for Rs 23 crore, which means the rate per sq m was calculated at Rs 21,000.
The ACB has also cited reports of few private firms to show that the PWD leased out the plot for a “throw-away price”. Government rules mandate that a private developer, who has been given a tender for exploiting a government plot, should not garner a profit of more than 20%. Another violation cited is that the PWD had illegally acquired the land from the education department. Sources said that the land was with higher education department and there was a proposal pending since 1995 for building a library with a Rs 23 crore budget.
On February 19, 2009, the library project was approved by the infrastructure committee and within a week the PWD under Bhujbal initiated the tendering process even as a government resolution (GR) was to be issued. The PWD released an advertisement on February 27, 2009, inviting tenders for the library’s construction. The GR was issued on July 17, 2009.