Somaiya moves HC over corruption in PAP rehabilitation

The PIL states that though the BMC has several plots for rehabilitation of PAPs all over the city, more than 10,000 PAP tenements are being rehabilitated at a single site

MUMBAI: BJP leader Kirit Somaiya has moved the Bombay high court seeking orders to strike down the Brihanmumbai Municipal Corporation’s (BMC) scheme of procuring residential tenements from the open market. The former Parliamentarian has also sought orders to cancel contracts issued by the civic body for construction of 13,971 tenements for rehabilitation of project affected persons (PAPs) at four places across the city.

Mumbai: BJP leader Kirit Somaiya addresses a press conference, at the party office in Mumbai, Tuesday, July 26, 2022. (PTI Photo) (PTI07_26_2022_000252B) (PTI)

According to the PIL, after Uddhav Thackeray became chief minister in November 2019, the state government and the BMC came up with a plan to create a stock of tenements for PAPs, affected primarily due to widening of roads and drainage lines. A list prepared by a senior civic official indicated that around 35,000 PAP tenements were required in the city, including 50-1,000 tenements in each of the 24 civic wards.

The PIL states that though the BMC has several plots for rehabilitation of PAPs all over the city, more than 10,000 PAP tenements are being rehabilitated at a single site. Moreover, in March 2022, the BMC issued letters of acceptance for four PAP camps – they include 7,439 tenements at Mulund East, 4,000 tenements at Chandivali, 529 tenements at Prabhadevi and 1,903 tenements at Bhandup. But the civic body also floated tenders for purchasing PAP tenements from builders at market rates.

“In due course, many concessions and relaxations were fraudulently incorporated, resulting in the evolution of the ₹20,000 crore PAP loot,” states the PIL.

The PIL notes that builders from whom the BMC will purchase PAP tenements have been offered transferrable development rights (permission to build and sell property elsewhere in lieu of the area surrendered to the civic body). They are allowed to utilise a floor space index of 5.4, meaning the total built-up area of buildings can be 5.4 times the plot size. Builders are also exempted from payment of government premium for the additional floor space index.

The PIL claims that as per existing contracts, the BMC will end up paying TDR and credit notes worth ₹8,302 crore to contractors, while builders would reap profits to the tune of ₹6,330 crore. Two more contracts for 10,000 PAP tenements each are proposed to be awarded soon, which would entail further expenses.

Somaiya alleged that two groups of builders were the primary beneficiaries of the scheme. Builders had also been allowed to construct PAP tenements on plots reserved for other public purposes in the development plan, he said. The PIL is yet to be listed for hearing before a bench.