A retired judge will inquire into alleged violations in an agreement on the Powai Area Development Scheme, which houses Hiranandani Complex.
Chief Minister Ashok Chavan, said this in the Legislative Assembly on Monday, following allegations of violations by the Opposition.
Leader of Opposition, Eknath Khadse, said the Mumbai Metropolitan Region Development Authority (MMRDA) had recommended that Hiranandani builders, who developed the area, should pay a penalty of about Rs 2,000 crore for alleged violations. “But I have information that the amount was reduced to Rs 200 crore in Mantralaya,” Khadse said.
He added that last year, MMRDA Commissioner, Ratnakar Gaikwad, had submitted his report to the Urban Development Department, headed by Chief Minister. Gaikwad had recommended that all concessions extended to the builder and the complex be withdrawn and the land be taken back, Khadse said.
He added that Hiranandani had entered into an agreement with the MMRDA and the state to develop the 230-acre land under the Urban Land Ceiling (Regulation) Act in 1986. The builder was required to build smaller, affordable flats for low-income groups. Khadse said the developer built small flats, but amalgamated and sold them as luxury pads of 2,000 to 4,000 sq ft each. “These flats are being sold despite violations. The government must recover the fine from the builder,” Khadse said.
There are three litigations in the Bombay High Court against Hiranandani on the issue. The court had directed the builder not to sell amalgamated flats.
Khadse did not approve of a fresh inquiry tribunal. “This is wrong when everything is on paper,” he said. “A highly responsible government official has unearthed violations and recommended penalty.”
Government sources said the MMRDA had calculated a penalty of Rs 1,993 crore. An official requesting anonymity said the agreement was to facilitate construction of homes. “The builder violated norms by developing 1.19 lakh sq m of commercial built-up space,” the officer said.