State sold 3 hectares of land to Bombay Dyeing for Rs 13 cr | mumbai | Hindustan Times
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State sold 3 hectares of land to Bombay Dyeing for Rs 13 cr

mumbai Updated: Apr 24, 2010 02:27 IST
HT Correspondent

The state government admitted to returning 3.68 hectares of leased land in the prime locality of Dadar to Bombay Dyeing and Manufacturing Company for only Rs 12.79 crore.

The government said this in a statement tabled before the Assembly on Friday.

The Opposition had sought details of this transaction on Thursday, alleging that the deal was undervalued and cost the exchequer a loss of Rs 500 crore.

Food and Civil Supplies Minister, Anil Deshmukh, said the first decision in this case was taken in 1995 when the Shiv Sena–Bharatiya Janata Party government was in power.

The final decision was taken in 2006 by then chief minister, Vilasrao Deshmukh, when the company approached the state in appeal against the municipal corporation.

Leader of the Opposition, Eknath Khadse, said the first decision was not taken by the Sena-BJP government and that the saffron government came in power in October 1995, while the decision to return the land was taken in May 1995.

The government took possession of the Dadar land on which Spring Mills stood from the Bombay Dyeing Company during the Second World War on a nominal lease. Since 1949, the government set up six godowns here and paid the company Rs 3,700 a month. When the real estate sector began booming in the 1990s, the company started trying to get the land back.

Decision to return land to Bombay Dyeing was formalised in 2006.

In cases where mill owners had got land from the state on a nominal lease, they did not part with the land even after the mills were defunct.

Khadse said the deal to return the land to Bombay Dyeing should be probed. He also said the land should not be returned to the company. When Deshmukh failed to quell the demands, the Opposition created a ruckus and staged a walk out.

The Opposition in the month-long budget session, which ended on Friday, tried to expose various suspect land transactions of the state. However, it failed in forcing the government to probe any of them.