CM does U-turn on extension for BKC projects | mumbai | Hindustan Times
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CM does U-turn on extension for BKC projects

mumbai Updated: Oct 25, 2012 01:31 IST
HT Correspondent
HT Correspondent
Hindustan Times

A day after increasing the cap on construction period from four to six years for projects on state-owned lands in Bandra-Kurla Complex and Wadala, chief minister Prithviraj Chavan on Tuesday asked the Mumbai Metropolitan Region Development Authority (MMRDA) to keep the decision in abeyance.

Chavan’s opponents within the Democratic Front government had complained that the extension would help a particular industry major that plans to construct a multi-level underground car park at BKC.

A press statement from the chief minister’s office said that the decision was kept on hold because only some parties would benefit from it.

“The chief minister has asked for reviewing the proposal in MMRDA's next meeting,” the statement added.

Currently, the authority imposes a penalty of 10% of the market value if the completion time exceeds four years. The penalty increases by another 5% for every subsequent year. With the new decision, the penalty clause would have come into effect after six years.

Sources say that some Congress and Nationalist Congress Party leaders wanted Chavan to review the decision because of apparent favouritism to an industry major, which was allotted a plot on lease in 2007 for constructing a multi-level underground car park on a 37,252-sq-m recreation ground in G block at BKC.

However, it has not sought a commencement certificate from a competent authority yet, though under the lease agreement, the company was expected to construct the park by July 2011.

If the current norms are imposed, the company would have to forfeit a bank guarantee of Rs50 crore for breaching the agreement and pay a penalty of Rs120 crore for each delayed year.