Maha Govt files ‘cheating’ case against Maple Group

A complaint was filed at the Shivaji Nagar police station in Pune by the State Government against The Maple Group which had recently published advertisements to promote its housing scheme that offered a one-bedroom-hall kitchen flat for just Rs 5, 00,000 on the outskirts of Pune.

The government had earlier issued a notice to the Maple Group seeking clarity on the misleading advertisements carrying images of PM Narendra Modi, CM Devendra Fadnavis and Pune Guardian Minister Girish Bapat. “We had also shot off a letter to the developer to inquire about the credentials of the project. However, since this did not elicit any response, it prompted us to lodge a complaint against the group suo-moto,” said Tushar Doshi, Deputy Commissioner of police.

The case has been registered under 420 (cheating and dishonestly inducing delivery of property), 417 (cheating), 120 (B) (criminal conspiracy) and 34 (common intention) of IPC against Maple’s CMD Sachin Agarwal, MD Navin Agarwal, Sales Manager Priyanka Agarwal and other officials.

The alleged misleading advertisements gave an impression that the ‘Maharashtra Housing Scheme’ project was a part of Pradhan Mantri Aawas Yojana. However, the state government has clarified that Maple Group’s project was in any way linked with the Central or state government housing schemes.

The Group, through the adverts, tried to cheat people into buying apartments at Rs 5 lakh and collected non refundable amount. Maharashtra Housing and Area Development Authority (MHADA) and Mission Director of Pradhan Mantri Awas Yojana (PMAY) have slapped a notice to the group asking them to withdraw the controversial advertisements, stop collection of money and refund the amounts collected immediately.

Image Credits : DNA

In the latest move of Maharashtra state government it is likely to see that realty rates in Mumbai suburbs may rise again, after the final notification of state government through which Maharashtra state government is planning to hike the additional premium charges and development rights with an aim to generate more revenue for exchequer, which is currently cash-strapped.

The Maharashtra Government’s Urban Development Department (UDD) modified regulation 32 of DCR (Development Control Rules) on December 4 with an aim to hike the optional incentive of FSI (Floor Space Index) for the suburb of city from 0.33 to 0.50. Floor Space Index is an indicator that how high a real estate developer can build a plot; the ratio of the total constructed area and the size of the plot. Apart from that the additional FSI will come out at a cost as state is hiking the premium with the rate of 60 percent of the current ready reckoner rates. Earlier, it was linked with ready reckoner rate of 2008. However; now state hopes to mop up around Rs 3,500 crore to Rs 4,000 with the premium received which can be shared equally between the civic body and the state government. Real estate developers are saying that hike in premium will directly increase the realty rates in the suburbs of Mumbai, as the cost of the additional FSI works out in the range of Rs 4,000 to Rs 12,000 per sq feet. The more they added that it will get passed to the buyers as in present time realty market in Mumbai is more sluggish and increase in rates are likely to pose a challenge.

How Transfer of Development Rights will generate revenue for state government?

According to Paras Gundecha, Chairman and MD of Gundecha Group, “There is no incentive and it will jack up the cost of projects in real estate sector and at the end we as the real estate developers will be forced to increase the selling rates”. On the issue of increase in premium, real estate developers are saying that it will also lead them to increase in the cost of TDR (Transfer of Development Rights) certificate. The suburbs of Mumbai city have a base FSI of 1 and it allow to use TDR 1 that can be brought from the market. Transfer of Development Rights is floating FSI generally generated on the residential projects of slum or whenever; land owners lose their plot for reservation for an amenity, which can be used for suburbs. In the year 2008, the state government has first introduced 0.33 as incentive FSI for suburbs to reduce the monopoly of the TDR lobby with an aim to help the government, so that they can earn more revenue from transferring development rights. In present, the cap of FSI is continues to be 2.

In March 2015, the CM Devendra Fadnavis had proposed to increase the FSI for the Maharashtra suburbs and for that he issued notice to hike FSI by 0.60. Apart from that after going through multiple objections and suggestions from the public, the FSI was hiked by 0.50 and it is expected that additional FSI will not be applicable at BKC (Bandra Kurla Complex), as it is the part of the slum rehabilitation schemes, so these areas are coming under CRZ (Coastal Regulatory Zone). The suburb regions of city have a base FSI of 1, however; the construction projects can utilize the TDR of 1 and it will include the incentive FSI 0.50 with the cap of 2.

Smart Cities in India

Recently, CM Fadnavis informed that 10 cities of Maharashtra would compete with other states to bag the ‘Smart City’ projects which meant to get the more advanced and well developed urban infrastructure.

Maharashtra CM Devendra Fadnavis stated that there are 10 cities from our state which is being nominated for the Centre’s “Smart Cities” project and we will compete with the entries of other states to bag funds from central to develop more advanced and developed urban infrastructure. Edged out emerging towns from the developed cities of Maharashtra are in the race to bag the funds from central. However; the name of shortlisted cities are; Mumbai, Kalyan – Dombivali, Navi Mumbai, Thane from MMR (Mumbai Metropolitan region), Pune, Solapur, Pimpri – Chinchwad from Western Maharashtra, Nagpur and Amravati from Vidarbha, Nashik from North Maharashtra and Aurangabad from Marathwada.

Recently, Central Government of India, has identified development of new towns close to those cities which are well developed because its key behind the smart city initiative where central government will contribute Rs 50 crore each year towards the smart city project. According to Comptroller and Auditor General (CAG) of India there are lacks of infrastructure and basic amenities in the new emerging towns of Maharashtra and due to that soon CM will announce next plan for development, which will focus on the urban areas or Maharashtra. This report observed that out of 36 none of the town has even the basic service level benchmarks for solid waste management, sewage management and water supply, however; the audit was for the period of 2011 to 2014. According to CAG report, water supplied in 50 per cent of the audited towns are between 25 to 69 litres per day per person, however; according to government norms it should be between 70 to 70 litres per day per person. It was observed that due to loss from distribution system, treatment plans, reduced efficiency of water the problem of irregular water supply comes in existence.

Almost there is no town which found to be segrating municipal waste; the more CAG added that the numbers of towns are not even authorized by the state pollution for the waste disposal facilities. However; the CAG has also identified irregularities in the main irrigation projects in all over the state and there are many mini projects which don’t have approved master plan.