Govt. begins probe into ex-MHADA CEO’s largesse

Misuse of powers for allotment of additional built-up-area under scanner

May 03, 2018 12:32 am | Updated 12:32 am IST

The Additional Chief Secretary (Housing) will look into the allotment of an additional built-up-area in a society at Siddharth Nagar, Goregaon (West).

The Additional Chief Secretary (Housing) will look into the allotment of an additional built-up-area in a society at Siddharth Nagar, Goregaon (West).

Mumbai: The State government has begun a high-level inquiry into an ‘illegal’ No Objection Certificate (NoC) issued by former vice-president and CEO of Maharashtra Housing and Area Development Authority (MHADA), Sambhaji Zende.

A preliminary enquiry has found that Mr. Zende used his discretionary powers to extend commercial Floor Space Index (FSI) of four under provisions of the Development Control Rule (DCR) 33 (5) to a residential project in the suburbs. The provisions are meant only to facilitate affordable homes for the economically weaker sections (EWS), low-income groups (LIGs) and middle-income groups (MIGs).

The inquiry is a double whammy of sorts for the government. Former MHADA vice president and IAS officer Satish Gavai faces allegations of extending an out-of-turn NoC to developers.

A detailed investigation by the Additional Chief Secretary (Housing) will look into the allotment of an additional built-up-area of 2,334 metres for commercial use to the Dairy Owner Cooperative Society on SV Road at Siddharth Nagar, Goregaon (West), through the “discretionary quota of the vice-president.”

According to the preliminary investigation, the total FSI after utilising the fungible benefits was to the tune of 6,223 m. The NoC for this, issued on May 9, 2016, allowed an additional FSI of 4.6 on plot-bearing City Survey Number 27B/27A for the construction of a basement-plus-10-storied building. All of this was over and above the mandated levels of 2.5 FSI for the layout, report said.

The NoC was also used to obtain other concessions to construct a hotel, rooftop swimming pool and condonation of deficiencies in the mandatory open spaces. The condonation washeightened to the extent of 41.66% to 75% of the proposed building for charge of a premium, officials said.

The inquiry report, presented on April 13, 2018, said, “The plot, though in the MHADA layout, is not eligible for additional FSI. The present proposal outlines utilising the FSI available from the layout for commercial exploitation thereby exceeding the cap in Regulation 32. This in effect means enabling the FSI available for residential purpose as per 33 (5) to be converted for commercial use, which is a serious violation of DCR, 1991.”

The housing authority, constituted with the idea of creating affordable homes, has run into multiple controversies over the past few years. Mr. Zende was under the anti corruption scanner for an additional reason: an anonymous letter alleged he took kickbacks for assuring engineer promotions and transfers to lucrative postings days before he retired in 2017.

The letter read: “Mr. Zende, in keeping with his corrupt practices, has made a deal of ₹5 crore with select MHADA engineers. As per rules under the Maharashtra Transfer Act, 2005, general transfer and postings under MHADA are done in the last week of May.”

Last month, the State government had ordered an investigation by retired state chief secretary Johny Joseph into the redevelopment of Siddharth Nagar Co-operative in Patra Chawl, Goregaon. The total loss to MHADA from this project is estimated at over ₹1,000 crore. Incidentally, both the projects -- approved by Mr. Zende and Mr. Gavai -- are located at Siddharth Nagar, Goregaon. But officials said there doesn't seem to be a connection between the two.

Reacting to the report, Mr. Zende said the rules are clear, and he has only acted within the ambit of the DCR regulations. “There is clarity on what (allotment) is meant to be for EWS, and others for LIG and HIGs. Where is the ambiguity? I can’t talk more on this,” he told The Hindu .

Experts and former officials said the misuse of regulations in MHADA has only grown rampant over the past few years, while the provisions of Regulation 33 have been frequently changed by the government to ease redevelopment on charge of a premium. Said former Mumbai MHADA board chairman Amarjeet Singh Manhas, “MHADA was created with the objective to provide affordable homes to people. But over the years, it has only become a tool to accumulate premium for redevelopment of buildings. The VP has discretionary powers with regard to this premium.”

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