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SRA revokes permission given to developer accused in Maharashtra Sadan scam

Mumbai city news: The Andheri SRA scheme was under scrutiny from day one and things worsened following Chhagan Bhujbal’s arrest in the case

mumbai Updated: Jul 14, 2017 09:13 IST
Naresh Kamath
Naresh Kamath
Hindustan Times
Mumbai city news,Maharashtra Sadan scam,Andheri
Maharashtra Sadan in New Delhi. (HT photo )

The Slum Rehabilitation Authority (SRA) cancelled the permission given to Chamankar Enterprises to develop a plot in Andheri in exchange for developing Maharashtra Sadan in New Delhi.

The developer is an accused, along with former Public works minister and NCP leader Chhagan Bhujbal, in the Maharashtra Sadan scam.

The SRA order states: “The erstwhile builder Ms K S Chamankar Enterprises in Anna Nagar, Kasam Nagar and Vithal Rakhumai SRA CHS scheme in hereby terminated under Section 13 (2) of the Maharashtra Slum Areas Improvement, Clearances and Redevelopment Act 1971.”

Read: Court asks jail authorities to take Bhujbal to only government hospital for treatment

The Andheri SRA scheme was under scrutiny day one and things worsened following Bhujbal’s arrest. In its charge sheet, the state anti-corruption bureau (ACB) had accused Bhujbals and others of engineering in a land-barter deal favouring the developer.

The developer has builrt Maharashtra Sadan in New Delhi, High Mount state guesthouse at Malabar Hill, transport offices and residential quarters in Mumbai. As a compensation, it was given floor space index (FSI) to develop the Andheri plot and sell it in the open market.

Read: Chhagan Bhujbal laundered Rs 291.71 crore, claims enforcement directorate

The PWD had pegged the cost of the Andheri plot at Rs 270 crore in 2006. However, a private organisation which conducted another valuation in 2011 found it was Rs 4,000 crore. The property sale proceeds in 2011 was Rs4,000 crore. It was alleged that the SRA project was neither advertised nor tendered, and rules were bent to favour the developer.

The developer has been facing heat over the deal from multiple investigating agencies. In 2015, the Enforcement Directorate (ED) attached assets worth Rs17.35 crore of Chamankar Enterprises after two cases of money laundering were registered against Bhujbal.

First Published: Jun 20, 2017 00:25 IST