BMC ‘gifting’ prime Worli plot for 5-star hotel: Opposition demands stay on auction

MUMBAI: Days after BMC issued a notice for auctioning of a prime Worli plot housing a municipal testing laboratory to allow its "commercial exploitation" by builders, the opposition demanded that the sale be stayed. City Congress chief and MP Varsha Gaikwad alleged that BJP-governed BMC is "gifting" the plot to favoured builders to construct a five-star hotel. Samajwadi Party MLA Rais Shaikh demanded that BMC formulate an auction policy after consulting all party group leaders to avoid such sales.

Gaikwad said as per the plan, builders have to pay BMC only Rs 455 crore for the 5,166sqm land while setting aside just 1,300sqm for the laboratory. "BMC must stop this auction immediately. The auction conditions have been rigged to suit only particular favourite builders who want to gulp this plot and make windfall profits through the five-star hotel. There needs to be a debate on auctioning BMC properties before BMC group leaders. Ad hoc auctioning of prime BMC properties must be stopped immediately. This is a multi-crore scam," she said in a post on X.

Shaikh alleged that the eligibility condition of having redeveloped at least three BMC properties in the past 10 years is restrictive and drafted to "gift" the plot to select builders of BJP.

The auction plan was approved by former BMC chief Bhushan Gagrani days before his retirement on March 31.

The auction notice was issued weeks after junior urban development minister Madhuri Misal announced an inquiry into BMC's Rs 600-crore tender for the laboratory's redevelopment. That plan had also entailed construction of a new laboratory, a multistorey robotic parking tower and commercial units. The civic body cancelled the tender for it three times following allegations of undue cost escalation and irregularities.

As per the auction plan, the builder can construct residential or commercial towers on the plot. It stated that the land parcel would be leased out for 30 years, with the provision of extending it by another 30 years. Apart from the premium to be paid to BMC, the developer will have to construct and hand over 1,300sqm of office space to it for its laboratory and make temporary arrangements till it is ready.