August 24, 2015
Sri Venkaiah Naidu,
Hon’ble Minister for Urban Development
Government of India
Nirman Bhawan
Maulana Azad Road
New Delhi-110 011
Sub: Our representation dated 17/07/2015 to the Hon’ble Prime Minister of India on the rampant corruption in real estate projects of Builders and Corporate Houses in Mumbai, and illegal construction and unauthorized development.
Ref. Prime Minister’s Office letter No. PMOPG/D/2015/ 0164669 dated 21/07/2015.
Hon’ble Sir,
This is in reference to the letter No. PMOPG/D/2015/0164669 dated 21/07/2015 issued from the PMO to the Chief Secretary, Government of Maharashtra (Annexure-A) for the appropriate action, on the representation made to the Hon’ble Prime Minister on 17/07/2015 by the undersigned on behalf of the United Human Rights Federation (UHRF). We take this opportunity to submit to you a copy of the said representation dated 17/07/2015 (Annexure-B) for your kind perusal, consideration and necessary directions. In furtherance of the same we submit as under :
1. There is rampant corruption in real estate projects of various Developers and Corporate Houses in Mumbai, Maharashtra specifically in the project ‘Palais Royale’, being built by M/s. Shree Ram Urban Infrastructure Ltd (SRUIL). The UHRF has tried to expose the role of builders – municipality officials’ nexus in carrying such illegal construction and their promoting and encouraging unauthorized development in the city affecting poor & common men and innocent investors.
2. The developers of Palais Royale, M/s. SRUIL has blatantly violated fundamental provisions of the Development Control Regulations and has carried out unlawful and illegal constructions in the ‘Palais Royale’ building without Commencement Certificate. The said developer deliberately and with full knowledge has breached the ‘stop work’ notices dated 16.07.2011, 14.12.2011 and demolition notice dated 19.12.2011 issued under Section 53 of the Maharashtra Regional and Town Planning Act, 1966;
3. The Municipal Corporation of Greater Mumbai (MCGM) has arbitrarily granted unjustified concessions, sanctions and approvals to SRUIL and were silent spectators to the unauthorized constructions in spite of evident illegalities and gross violations. The illegal developmental activities of the developer are against the interest of common men and society at large and are being done in clear and flagrant violations and disregard to the provisions of law including the Development Control Regulations.
4. The then Municipal Commissioner, MCGM in an interview to the Times of India on 16.01.2012, himself has admitted the fact and inter alia stated that huge discretionary powers are given to the authorities which are misused. The article demonstrates that the Municipal Commissioner was and is well aware and conscious of the fact that free of FSI areas like flower beds, voids, ducts lobbies etc have been sold by the developer and converted into living areas. Several other such blatant violations as usually carried out by SRUIL being reported daily but nothing is being done in rectifying such violations.
5. The MCGM also in the year 2011 had unearthed the illegalities, fraud and irregularities of the Shree Ram Urban Infrastructure Ltd in building the project ‘Palais Royale’ and had ordered for an investigation of the illegal construction. It was found that 13 floors beyond 43rd floors were constructed without surrendering the land for Public Parking Lot (PPL) and without accruing of incentive FSI. The said 13 floors have been constructed without commencement certificate. This is in violation and contravention of the development control regulation and the MR&TP Act.
6. The PPL Building constructed later on by the developer, is also without any commencement certificate and has been constructed under the guise of ‘deeming provision’. The MCGM on 14.12.2011 issued a notice U/s 354A of the Mumbai Municipal Corporation Act to the SRUIL regarding the PPL building. The UHRF through its representative has also approached the office of the MCGM and has been able to obtain documents /complaints concerning the illegal and unauthorised construction being carried out in the project ‘Palais Royale’ and the Public Parking Lot.
7. It is further learnt that for the construction of Project ‘Palais Royale’, SRUIL has also availed thousands of crores of loan and advances from various public sector banks and financial institutions against the assets and properties knowingly that such construction is illegal and of without proper commencement certificate.
8. The huge investment of the investors and flat purchasers is at stake as the construction in the Project ‘Palais Royale’ beyond 43 floors (i.e. 13 floors in total) are patently illegal and in violation of the rules and bye-laws and in contraventions of Development Control Regulations without accruing incentive FSI of Public Parking Lot and without commencement certificate. The SRUIL has also taken/ collected more than Rs. 1000 Crores by selling the illegally built flats / spaces to the buyers in the Project ‘Palais Royale’ despite of the ‘stop work’ notices issued by the MCGM.
9. The errant Developers / builders of Mumbai are selling the spaces on super area basis in flagrant violation of the Court’s directions to sell the spaces on carpet area. The areas free of FSI such as flower beds, voids, ducts, lobbies gardens, swimming pools, refuge areas etc. in all the projects are being sold by the Developers. The UHRF has been able to collect copy of Brochures/Floor Plans of some Developers. On perusal of the same, we found various the violations in the name of ‘free of FSI’ as the developers/builders later on have clubbed these areas to the saleable space. The UHRF has identified some other projects in Mumbai with similar violations, namely-
i. Indiabulls Sky Forest Project, Lower Parel;
ii. ‘Avighna’ Project at Lower Parel;
(Group of Mr. Kailash Aggarwal)
iii. Omkar 1973 Project at Worli;
iv. Satellite Group Sesen Project at Napean Sea Road;
v. Oberoi Reality Project at Worli; and
vi. Singhania House Project at Warden Road.
10. The developers of the above projects are selling the spaces/flats to the investors on the Super Built-up Area and not on the Carpet Area as highlighted in “Green” on the Floor Plans as attached to the representation dated 17/07/2015 of the Applicant. These areas later on have been illegally included or merged with the flat area.
11. The construction of the PPL has been carried out by the developer despite the ‘Stop Work’ notice dated 16.07.2011 issued by MCGM. The said notice had been issued with respect to the entire Project and the entire layout of the property of developer/SRUIL. All the construction undertaken with respect to the PPL and the residential building ‘Palais Royale’, has been done in clear violations of law and against ‘Stop Work’ notices. As far as the residential building is concerned, there was no CC / permission to construct 44th floor to 56th floor, and most importantly these additional floors could not have been built till the developer / SRUIL handed over land meant for Public Parking to MCGM and accruing of additional FSI thereafter.
12. The developer - SRUIL despite having given undertakings that the refuge areas and fire escape passages would not be misused, yet the same are being sold to flat purchasers as useable carpet area forming part of the individual flat. The developer has also sold refuge areas, common areas, passages, flower beds, etc. as useable carpet area.
13. As per the records available from the MCGM, it is revealed that a setback area admeasuring 2442.87 sq. yds. situated in C.S. No. 289 of Lower Parel was acquired by BMC/MCGM for widening of the road near mill premises, and for the same BMC paid compensation to Shree Ram Mills Ltd /SRUIL in the year 1976. As per the MCGM records specifically in the letter dated 08.08.1992 issued by SE(Survey), MCGM to Mr. M.K. Kelkar, Architect of the Developer, it was clearly mentioned that area admeasuring 2442.87 sq.yds. along Fargusson Road i.e. G.Kadam Marg has been handed over and compensation paid.
14. After a period of about 8 years, the A.E. (Maint.), G/South, MCGM vide a letter dated 25.09.2001 informed E.E.B.P. (City), MCGM that – “the set back area of 2442.87 Sq. Yards along G.K. Marg has been taken over by this office in the year 1976, however, as per the available records, monetary compensation is not paid to party”. It has been further mentioned in the said letter that – “regarding the set back along G.K. Bhosale Marg, it is so far not taken over by this office”. It is pertinent to mention that the MCGM vide its letters dated 15.03.1976, 08.08.1992 and again on 16.06.1993 on its own has admitted to have received /taken over possession of setback area on 15.03.1976.
15. The erstwhile Municipal Commissioner, MCGM in its speaking order dated 12.09.2013, on the issue of FSI in lieu of setback area, while calling officers from the ULC Department, has also confirmed producing of the said letter dated 08.08.1992 before him by ULC Department. However, the Commissioner, MCGM has observed that- “in the absence of conclusive documentary evidence, the FSI advantage in lieu of handing over the set back area cannot be considered at this stage”.
16. The absence of “conclusive evidence” as mentioned in the Speaking Order dated 12.09.2013 of the Commissioner, MCGM signifies missing of documents concerning handing over possession of the land and receiving of monetary compensation by the developer / SRUIL. The files and details regarding the handing over – taking over and payment of compensation etc. were found not available in the office record of EEB (City); being the same are missing or misplaced. Later, taking advantage of it, SRM /SRUIL despite having received compensation availed extra FSI in the year 2013 in lieu of that and consumed the same in their said ‘Palais Royale’ building by concealing true facts and by misrepresentation.
17. The acts and conduct of the officials of the BMC and the SRUIL are illegal and of gross misconduct and requires thorough investigation. This is a serious FSI fraud collusively committed by the SRUIL, MCGM and their officials. An investigation in this regard is being done by Anti Corruption Bureau, Mumbai and the files/ records and register concerning the same are in the custody of ACB. However, the ACB despite having all the documentary evidences concerning the said project, in their custody, has not yet started investigation and they have not registered the case / FIR against the accused (the officials of developer SRUIL & MCGM) involved in the matter.
18. Sir, in the light of the above facts and circumstances, the applicant undersigned pray to :
i. Carryout an immediate and urgent investigation in the illegal affairs and irregularities of the real-estate development projects of various developers at Mumbai as mentioned hereinabove;
ii. pass strong directives and orders against such developers who were/are involved in illegal and unauthorized construction which are in violation of the Development Control Regulations & BMC/MCGM norms;
iii. direct for appropriate enquiry and investigation, register criminal cases against the developers & their officials, officials of BMC/MCGM involved and other person including the architects of the projects who have facilitated the developers/ builders for such unauthorized development;
iv. grant sanction/ permission or issue NOC to the EOW / Anti Corruption Bureau to investigate and register cases against the developers and government officials who are involved.
19. It is relevant to mention that on the various complaints of violations by the developers at Mumbai, BMC/MCGM has recently decided to demolish and seal the four refuse floors in the above mentioned Singhania Houses since the 37 storey building is likely to be misused by the developer. Copy of the news report of Times of India, Mumbai dated 22.08.2015 (Annexure-C) is also attached for your kind perusal. Similarly, the Hon’ble High Court of Bombay at various occasions has also warns BMC/MCGM for its lethargic attitude towards illegal construction. The copy of news reports as appeared in the newspapers, is attached as Annexure-D (Colly.). The applicant undersigned submit that if an action against one of the such errant developer is being taken, why the BMC/MCGM is not taking any action in the matter of project ‘Palais Royale’ of M/s. SRUIL ?
20. The UHRF has already collected files /documents concerning the development activities of various developers and are in the process of scrutinizing the same through architectural and legal experts. As soon as we get the details/reports of the same, will submit to the office of your Honour.
Sir, the applicant herein raise some serious and utmost important issues concerning the illegal developments / building activities by the developers at Mumbai since our representation dated 17/07/2015 to the Hon’ble Prime Minister has been forwarded for appropriate action, we at United Human Rights Federation seeks necessary and suitable action against all the persons involved in illegal and unauthorized constructions. Due to the non action on the part of the concerned authorities, rights, interest and investment of thousands of innocent common people who have invested in these projects, is at stake. We believe that certain discipline is necessary and humbly request your Honour for an appropriate and immediate directions to reign in the errant developers in Mumbai Metropolis.
Thanking you,
Yours faithfully,
For United Human Rights Federation
(Prabha Kiran)
Chairperson.
Enclosures. : Copy of Annexures A to D as mentioned above.
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i)
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Annexure-A.
Copy of the letter dated 21.07.2015 from Prime Minister office.
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ii)
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Annexure-B.
Copy of the representation dated 17.07.2015 to the Hon’ble Prime Minister of India.
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iii)
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Annexure-C.
Copy of the news report dated 22.08.2015 of Times of India, Mumbai.
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iv)
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Annexure-D (Colly.).
Copy of news reports as appeared in the newspapers.
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