Calculations fudged in Kalina scam: ACB

Agency says Chhagan Bhujbal and others also ignored several conditions and the opinion of the chief secretary, who recommended that the deal be scrapped

Investigations by the Anti-corruption Bureau (ACB) in the Kalina library scam revealed that the accused allegedly fudged calculations, ignored conditions laid down by the government and claimed land prices for Kalina that were far lower than the prevailing market value.

The case involves a prime four-acre plot at Kalina owned by Mumbai University, which was given to the government to build a library. The ACB has accused NCP leader and former public works department minister Chhagan Bhujbal, five other PWD officials, and a chartered accountant of causing huge losses to the state government by leasing out the plot to a private developer for a pittance.

The ACB, in its charge sheet, cited a government circular dated March 21, 2002, which states, “The government received several proposals for developing the government-owned open plots through private entities. From such projects, the developer should earn profit of not more than 20 percent.”

The ACB alleged that the claimed profit for the developer was 12.62%, while in reality it was much higher. According to a valuer appointed by the ACB, the builder stood to earn a whopping Rs 226.45 crore profit.

The charge sheet reads, “The valuer calculated the profit as per the plan approved by the BMC. As per the report, the profit which the developer was to earn is Rs 226.45 crore. As per the feasibility report submitted to the government, the developer was to earn a profit of mere Rs 15.62 crore (12.62%).”

The ACB also stated that certain conditions laid down by the revenue and forest departments were ignored in the deal. Under these conditions, the land would remain with the concerned department until it was used for the purpose for which it had been allotted. Another condition was that the land could not be rented or sold to a private entity or any other government department without permission from the collector.

Former chief secretary Ratnakar Gaikwad is one of the key witnesses named in the ACB’s charge sheet as the IAS officer had given his feedback about the land deal in 2013. Sources said Gaikwad, as chief secretary, has asked that the proposal be cancelled. According to the charge sheet, on May 10, 2013, Gaikwad noted that if the library was constructed on a build-operate-transfer (BOT) basis, the government would save Rs82.49 crore but the land, worth more than Rs157.31 crore, would go to a private developer for a paltry Re1 per square metre for 99 years. The ACB alleges that chief secretary’s opinion was ignored.

The ACB charge sheet also says that the construction firm transferred Rs 2.5 crore to the Chhagan Bhujbal Public Welfare Foundation for a festival in Nashik.