BMC boss overturns former civic chief's Rs 100cr slum scheme

MUMBAI: In a rare decision, municipal commissioner Subodh Kumar has overturned a former civic chief's decision so that the BMC can repossess a prime plot in Bandra (E) worth more than Rs 100 crore from a private developer.
The 42,693-sq-ft BMC-owned plot, at Shastrinagar near the suburban collector's office, is in use as a retail market, but in 2009, former civic chief Jairaj Phatak had granted a go-ahead for the Slum Redevelopment Scheme (SRS) on the plot.TOI has documents showing that Kumar recently overturned Phatak's decision and ordered that the plot be excluded from the redevelopment scheme.
BMC records show the plot is reserved for the "existing retail market" . Called Shastrinagar municipal market , it has 60 licensed shops and one fish shed, which have been in existence on the plot since 1980. But on February 16, 2009 Phatak accepted the approval for the amalgamation of the market land with a slum redevelopment scheme being carried out on a neighbouring 28,756 sq-ft encroached plot.
The slum rehabilitation authority (SRA) had initially granted its approval for the integrated slum scheme for both plots on the basis of a March 3, 2003 report submitted by the assistant commissioner (H/East ward). The report stated that the "entire market plot" -retail market plus the encroached portionhad been declared as a "slum" in 1976, and included names of the 60 municipal licencees in the list (annexure-II ) comprising slum dwellers eligible for rehabilitation.
Following this report, SRA granted a letter of intent to the East and West developers of the RNA (AA) group on August 25, 2004. These are the same developers who have been awarded the controversial contract to redevelop Crawford Market which is awaiting approval from the BMC's heritage committee.
The encroached plot had been reserved for the "extension of the retail market" . The developer had already started constructing rehabilitation buildings, when the Shastrinagar Municipal Mandai Vyapari Seva Sangh, an association formed by the municipal licencees, objected to their inclusion in the slum scheme. Arguing that its members were "legal and lawful tenants of the BMC" and could not be categorized as "slum dwellers" , the outfit demanded that the existing market portion be excluded from the slum scheme. "Consent of individual members of the Sangh was not obtained at the time of approval," the outfit argued. They said the "no-objection certificate from the market department hadn't been obtained" .
Sangh members say that 8% of the existing market plot has slum encroachments, 30% is occupied by the 60 licencees and the fish shed, while 62% of the plot lies vacant. But Phatak, ruled that the scheme was "in order" .
Accepting the approval granted to the scheme, Phatak directed the BMC's development plan (DP) department and SRA to take further action for the scheme's implementation. He accepted the approval after discussions with then SRA chief executive officer Srikant Singh. The chief engineer (DP) granted a no-objection to the proposal the same day.
Interestingly, then additional municipal commissioner Kishore Gajbhiye had argued against the inclusion of the existing market in the scheme, and said an independent redevelopment would be more profitable. The BMC's market department, too, opposed the approval.
The Sangh later challenged the approval before the stateappointed high-powered committee for slum projects, which in turn referred the matter to the SRA CEO. On December 1, 2010, S S Zende, the current SRA CEO, after hearing both sides left it to the BMC to decide on whether the existing market plot should be excluded from the SRS. At the hearing , advocates for the developer had argued that the scheme had been legally approved for both the plots after following the due process of law and that the annexure-II issued by the assistant commissioner included the licencees. The advocates claimed that the Sangh had passed a resolution on April 24, 2003, appointing the developer to undertake the slum scheme. The developer claimed that in 2006, it even entered into an agreement with eligible slum dwellers, including Sangh members, for shifting to transit shelters.
On April 1, 2011 the chief engineer (DP) recommended the exclusion of the market portion from the scheme. "Records reveal that the market was constructed and commenced operation with 59 licencees in 1980. The NOC from the markets department, which is mandatory, was not obtained. The licencees cannot be termed as slum dwellers," said the report . On June 7, 2011, present additional municipal commissioner Manisha Patankar-Mhaiskar submitted another report stating that independent redevelopment of the market would be a more profitable option. Based on these reports, Kumar overturned Phatak's decision . The assistant commissioner (H/East) has been asked to remove licencees' names from the annexure-II list.
AN EIGHT-YEAR WAIT FOR 'LAWFUL' TENANTS
APRIL 24, 2003 |
Shastrinagar Municipal Mandai Vyapari Sangh at Bandra (E) passes a resolution appointing East and West developers for redeveloping the market as part of a Slum Rehabilitation Scheme
AUG 25, 2004 |
SRA issues a letter of intent for a slum scheme comprising the 42,693 sq ft plot which is the existing market and the 28,756 sq-ft that had been encroached upon
MARCH 03, 2004 |
Assistant commissioner (H/East ward) states that the entire market plot (including both the plots) was declared a slum in 1976.
OCT 08, 2004 |
Municipal architect approves plans for the SRS on the entire plot
DEC 10 & 15, 2004 |
SRA grants commencement certificate for work for four proposed buildings
MAY 11, 2006 |
Developers enter into an agreement with beneficiaries for shifting into a transit accommodation
SEPT 17, 2007 |
Sangh decides to terminate the agreement with the developer for breach of contract. The developer challenges the validity of the termination
OCT 16, 2008 |
Then additional municipal commissioner seeks former civic chief Jairaj Phatak's approval to exclude the existing market portion from SRS
JAN 1, 2009 |
Assistant commissioner (markets) also opposes the SRS
FEB 16, 2009 |
Phatak accepts the SRS on the market plot after discussions with then SRA CEO Srikant Singh. Chief engineer(development plan) issues a no-objection certificate
JULY 18, 2009 |
A high-powered committee refers the matter to the SRA
DEC 1, 2010 |
SRA CEO S S Zende, after hearing both sides, asks BMC to decide whether the market plot should be included in the SRS or not
APRIL 1, 2011 |
Chief engineer (DP) suggests that assistant commissioner(H/East) had erred in declaring the entire plot as a slum
JUNE 7, 2011 |
Additional municipal commissioner Manisha Patankar-Mhaiskar submits a report, reiterating that independent redevelopment of market would be a more lucrative option. Later, municipal commissioner Subodh Kumar reverses Phatak's decision
New proposal more lucrative for BMC: Had the BMC allowed the slum redevelopment scheme to continue on the market plot, it would have retained possession of less than 10,700 sq ft, which is roughly 25% of the plot size. By proposing to develop the market under 33(21) of the DC rules, the BMC will retain rights on 1.79 lakh sq ft builtup area. The rule permits 4 FSI for redevelopment of the market. As per the rules, government agencies-the only ones permitted to undertake redevelopmentcan transfer development rights to any plot in the same ward or to the north of the redeveloped land. The BMC has opted for this lucrative option for the Bandra plot.