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CIDCO has misused its power: Public Committee

Nana Patole says that CIDCO has given undue favour to Raheja Corporation, reportsPradip Kumar Maitra.

india Updated: Dec 12, 2006 21:14 IST

The publicundertaking committee of the Maharashtra state Assembly on Tuesday took strong exception of the massive irregularities, committed by the City Industrial Development Corporation (CIDCO) for allotting plots in different educational institutions, co-operative housing societies, media houses and builders.

While submitting its annual report in the House, Nana Patole, its chairman pointed out that the committee found CIDCO had given undue favour to Raheja Corporation, a well-known builder of Mumbai, while distributing a land near the Railway station of Washi. The CIDCO had misused its power by not selling the plot without calling for a tender.

The plot was given to the builder mere getting an application. “The CIDCO could have got more revenue from the land because of high prices prevailing in the area. However, it had taken a very lower rate from the builder for the land,” the report said.

The report dismissed the justification of the CIDCO that the land was given to Raheja at lower price as the basic urban infrastructure was under progress in the area and cost of it was not borne by the CIDCO. “The fact was far from the truth,” it said and recommended stern action against the officials, involved in the deal. The report asked the government to come out with concrete policies on `auction and application’ for distribution of land.

In another incident, the report lashed out at the state undertaking for giving land at a lower rate to a housing society that was set up by 17 senior CIDCO officials and some directors of the corporation. The members of the housing society got a direct benefit of around Rs 19.93 lakh each because of fixing a low rate while the CIDCO suffered a loss of Rs 1.62-crore revenue.

The report said that the DK Shankaran Committee which probed the irregularities of CIDCO in distribution of land, found lapses on the part of the undertaking in 52 cases out of 80.

First Published: Dec 12, 2006 21:14 IST