Govt 'gifts' almost Rs 300 cr to influential developer in land deal

MUMBAI: Nothing is sacrosanct in this city anymore-except money. The city itself is up for sale. Large swathes of precious public land are being all but gifted away by government agencies and departments in questionable deals. Rules are modified or ignored ever so often to allow constructions that violate even the basic tenets of civic/municipal planning. And public tender conditions are written in such a way that the bidding process is nothing but a sham.

Just about everyone in the powers of corridor knows who’s being favoured, and where the money is going. And it’s not small change-it’s tens of thousands of crores. What’s unconscionable, even criminal, is that all of it is, directly or indirectly, public money and public space.

Almost every new day brings with it a deal that smells and tastes foul. Here’s one that’s just surfaced. It isn’t the first, and it won’t be the last.

The City Industrial Development Corporation (Cidco) may have lost a few hundred crores after it controversially allowed the extremely well-connected Pune-based developer, Avinash Bhosale to convert half of a 12-acre hotel plot into a residential zone on the prime Palm Beach Road opposite Seawoods in Navi Mumbai.

The decision, which was taken barely a few days before Cidco managing director G S Gill retired in March, has raised eyebrows, because soon after, Bhosale sold the six-acre residential portion for a hefty Rs 275 crore to the Mumbai-based Dheeraj Group—at a profit of 100%. Because, in July 2008, Bhosale’s Metropolis Hotels had paid Rs 282 crore for the 12-acre plot after emerging as the highest bidder.

Questions are being raised as to how a plot that was exclusively reserved for a luxury hotel could be partially converted for residences within two years of the bids being opened. A senior Mantralaya official, not wishing to be identified, told TOI, “The sanctity of the bidding process has to be maintained. If the land has been converted for a more lucrative purpose, then it is grossly unfair.’’ In government circles, Bhosale is known to be influential with friends in high places across the political spectrum.

When contacted, Gill said the conversion was carried out following the due process of law. “Cidco rules permit such conversion,’’ he said. Bhosale, on the other hand, told this newspaper that the plot “is too big for a five star hotel’’. “The proposed international airport in Navi Mumbai has been inordinately delayed and it will make no sense to make such a large hotel now. Part of the land has been converted into residential with Cidco’s permission,’’ he said.

Industry insiders question Cidco’s motive to reserve 12 acres for a luxury hotel when most such hotels do not occupy more than two to three acres. “Cidco would have fetched a substantially higher amount if the land had been auctioned for a residential project,’’ said one of them.

“This is nothing but political patronage,’’ said developer Arvind Goel, president of Navi Mumbai Chamber of Housing. “Policies are changed as per the convenience of officials. If other bidders had known that part of the hotel plot was going to be changed for residential purposes they would have quoted a much higher price when the bids were opened two years ago. Cidco has lost money, so who is the beneficiary? There is big money involved. Everyone knows, but what can you do?’’

According to activist-lawyer Y P Singh, a change of use cannot be done this away. “The demarcation for a five-star hotel is according to the requirement of the development plan.’’ According to him, the auction parameters have to be set prior to the auction to get the maximum possible bid. “Any post auction alterations will always be suspicious in nature,’’ he said.