MCA was allotted 13 acres of land by the MMRDA at its costliest BKC layout. The land which was meant for Educational purpose was utilised for commercial purposes, the MMRDA has now decided to conduct a financial audit into the dealings between the MCA and the Shirke Co, This information has been obtained vide an RTI response to a query filed by RTI Activist Anil Galgali. But one point to be noted that the MMRDA which is headed by the CM has not acted against the MCA which is headed by a VHP MLA in the ensued past 6 months, in the contrary efforts are being taken for granting the MCA permission to construct a Mount Gallery.
RTI Activist Anil Galgali had sought information from the MMRDA administration about the progress in the Notice issued to MCA about nominating an Auditor to conduct enquiry in irregularities. Vide a reply to Galgali, the MMRDA administration informed through a letter dt 13th April 2017 that, it has been decided after seeking legal advice of a Solicitor, that services of a reputed financial audit firm would be taken on considerate fees and an extensive audit would be conducted from the date of agreement between MCA and Shirke Infrastructure, they will also look into the transactions between the related agencies, Income tax return and the contract executed between themselves. It would also include verification of transactions related to Associateship fees, Service Charges, Annual Renewal fees, the complete Donors details and contributions which can reveal the truth about the commercial use of the service at MCA. The MMRDA Metropolitan Commissioner Shri UPS Madan has authorised the Finance and Audit department to appoint an Auditor and handover the documents pertaining to enquiry.
The MMRDA administration had sought legal advice on the issue from M/s Khaitan & Co and M/s Kanga & Co. In the process, M/s Khaitan & Co did not charge any fees for the advise rendered and M/s Kanga & Co billed MMRDA for Rs 65,000/- for the consultancy, which was paid by the MMRDA.
MCA which is already in violation of lease conditions of MMRDA has in a letter dt 22nd August 2017 has requested for permission to construct 2 Mount Galleries. It is interesting to note that MCA is headed by BJP MLA and it's Mumbai President Ashish Shelar. Anil Galgali has stated that the MCA which is already in violation of the lease conditions by indulging in utilisation of the land meant for Educational purpose for Commercial purposes, should not be granted the further permission for construction of Mount Gallery until the financial audit is completed and action taken on its previous violations.
MCA was allotted plot ad-measuring 52,157 sq mtrs on 05/03/2004 ,on a lease for 80 years for which MCA was charged a meagre Rs 2,65,98,202. The MMRDA also gave a FSI of 1.5 on allowing 15% construction on 10% of the plot, 23 % of the plot was meant for construction of Swimming pool, Tennis Courts, Cricket Nets and similar sporting activities. The rest 67% of the land was meant to be kept open for regulated public use. Similarly students from all over Maharashtra be admitted to the Indoor Cricket Academy. The MCA flouted the most important terms and condition of non commercial utilization of the plot by entering into a commercial agreement with M/s Shirke Infrastructure. MMRDA taking cognizance of this violation of its terms of allotment, citing the commercial agreement with M/s Shirke Infrastructure has issued a notice on 02/06/2015 to MCA to take rectification steps within 3 months or the lease agreement will be terminated. While allotting this land it seems the MMRDA flouted its own land allotment policy, Govt policy and circumvented the Govts own decision dt 15/05/2000 regarding allotting land reserved for recreational purposes to private agencies and organisations. It seems the MMRDA has gifted this land to the MCA said Galgali. It is also coming to light that, as per the MMRDA norms, the land could not have been considered for allotment to MCA. The audit report also mentions that MMRDA lost Rs 13.95 crores in the allotment which was done without calling for tenders as per norms. MMRDA woke up very late on the issue of violation, but the Income Tax dept had acted very promptly and cancelled the IT exemptions given to MCA due to this commercial violation. The MCA approached the Supreme Court on the issue of cancellation of IT exemptions but was not successful and had to pay Tax on the profit earned from the commercial activity. On the other hand, MMRDA instead of taking action of taking back the plot, wasted more then 6 month for legal advice and correspondence with M/s Kanga and company , though it is important to mention here that the Govt has its own legal dept, but instead of seeking the advise from its own dept has tried to avoid taking action by delaying and diverting in the name of seeking advise from an outside agency, claimed Galgali. Galgali also raised concerns seeking to know that since when Cricket became Educational subject and how? He said this also needs to be enquired. RTI Activist Anil Galgali has demanded from CM Devendra Fadnavis, CS Swadheen Kshatriya & MMRDA Chairman UPS Madan that the land should be immediately taken back and Rs 1000 crore be recovered from MCA, also initiate strict action against the MCA & M/s Shirke Infrastructure.
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