Reliance Industries Liable to Pay Rs. 341cr to MMRDA

BKC Area

As per the response to an RTI query, Mumbai Metropolitan Region Development Authority (MMRDA) would levy additional premium charges on Reliance Industries Ltd. (RIL) a company led by Mukesh Ambani for delay in development of a joint property in the posh BKC area. The amount of penalty would be Rs.341 crore for failing to develop the plot C 66 in the G-Block of BKC as a commercial building with car park within a stipulated period of four years. MMRDA informed that the amount has been due for the last 34 months.

An RTI activist Anil Galgali had filed a query with MMRDA wherein he sought details of the plot of the new business district in the central part of the megapolis. MMRDA said that plot No C-66, ad-measuring 10183.18 square metres, was leased to RIL on September 27, 2008 for Rs 918.03 crore and allowed development of 30,550 square metres of commercial space and 20,366 square metres for public parking. The RTI reply was furnished by an official of the Town Planning Division.

When RIL spokesperson was contacted, he informed that the construction is now almost complete except some final touches but blamed Raghuleela Builders Pvt. Ltd. (the developer) for the delay in construction. The developer has a tripartite agreement with MMRDA and RIL for development of the property.

RIL also argued that the delay in payment should not be termed as ‘default’ because as per the request for proposal (RFP), the developer can make the payment along with interest till the time he seeks occupation certificate (OC) or before the final completion certificate is granted. This is duly permitted by the MMRDA.

Besides One BKC, Reliance Industries is also building a huge convention centre in the business district, where it has developed a public park named “Jio Park” and was recently dedicated to the city.
Meanwhile, Galgali has demanded that MMRDA should issue a stop-work notice to RIL immediately and recover the additional premium first with interest and penalty. He said that he has written a letter to MAHA-CM Devendra Fadnavis as well as Metropolitan Commissioner U P S Madan over this blatant violation of rules and has demanded strict action against RIL.

There was no response to the query from Dilip Kawathkar, Joint director for projects at MMRDA.