By Accommodation Times Bureau
CM, Prithviraj Chavan has reversed its decision within 24 hours of relaxing in norms for development of plots which is leased by the MMRDA in Bandra Kurla Complex and certain other areas.
At a MMRDA meeting Chavan proposed to relax the time period for development of plots from four to six years. Allegations started on the decision that it will lead to loss for the revenue department of the MMRDA and will certainly benefit some realty businessman. Chavan said that the decision must be kept in abeyance and reconsidered at the next MMRDA meeting. MMRDA will re-examine the proposal as many questions have been raised regarding benefits going to some leaseholders.
As we all know, the current norms require private leaseholders to pay a penalty of 10% of the auctioned price. The MMRDA can also forfeit the lease and retain 25% of the price. The new proposal stayed an extension of the period to six years. Take a case of Reliance Infrastructure Limited which was allotted a 75,000 sq ft plot in BKC for convention purpose is near the deadline of four years and obviously it will miss the deadline. Following the norms RIL will now have to pay Rs.11o crore for each delayed year.