Daijiworld Media Network - Mumbai (SHP)
Mumbai, Jul 4: The Jamnaben Hirachand Ambani Foundation has an unpaid debt of over 65 crores to be paid to the Mumbai Metropolitan Region Development (MMRDA).
The foundation had leased two plots in Bandra Kurla Complex in 2002, for the construction of the Dhirubhai Ambani International School. In 2007, they submitted a letter to the chief minister for acquiring two adjoining plots so as to expand the school. The request was approved and the plots were allotted at cost of Rs 1.53 lac per sq metre.
MMRDA, then prepared and forwarded a deed for 80 years in 2009, but took two years to scrutinize and execute the deed in 2011. The foundation then paid a lease premium of Rs 65 crore. Accordingly, the deed stated that from the date of agreement, construction should not take more than four years for completion.
However, it was observed the construction crossed the said term which resulted in the MMRDA applying additional premium of Rs 23.5 crore in September 2017. In a review by CAG it was found that foundation was liable to pay much more, around Rs 52.4 crore.The calculation of additional premium should have been made from the year 2009, when the deed was issued and not in 2011 when it was executed.
The CAG report said, "Since the foundation has not paid the additional premium for construction delay, the dues recoverable from it on September 2018, work out Rs 65 crore including 14% per annum interest."
On the request by the foundation, personal hearing was also held by MMRDA in December 2017, January 2018 and February 2018. Unfortunately, the foundation has failed to be present at either of the dates without providing sufficient reasons. In a comment by MMRDA to CAG, they said that these shortcomings would be examined and a revised penalty would be levied.