State committee raps MMRDA for ‘favouring’ builders who delayed construction work

The legislative committee slammed the authority for not recovering an additional premium of Rs272.36 crore from the companies for the delay and extension to complete construction work.

The public accounts committee, in its report tabled in the state legislature last week, rapped the Mumbai Metropolitan Region Development Authority (MMRDA) for the delay in construction on six plots allotted to private companies.

REPRESENTATIONAL PIC

The legislative committee slammed the authority for not recovering an additional premium of Rs272.36 crore from the companies for the delay and extension to complete construction work.

Six companies were allotted the plots years ago, but the companies have failed to start the construction in time.

They have also failed to pay the additional premium and penalties to the MMRDA for their failure to begin the construction in due period, even after getting various extensions, according to the report.

The PAC said the authority favoured certain companies in terms of recovery of the premium and extension for the repayments.

The legislative committee also mentioned serious lapses in allotment of the plots in Mumbai by other government agencies including Mhada, Brihanmumbai Municipal Corporation and district collectors.

The committee studies strictures passed by Comptroller and Auditor General and holds hearings for the departments to ensure corrections in the lapses.