MMRDA ignores recovery of Rs 1,283 crore

MUMBAI: The Comptroller and Auditor General of India (CAG) has slammed the Mumbai Metropolitan Region Development Authority (MMRDA) for the non-recovery of Rs 855 crore of lessees on additional built up area at Bandra-Kurla Complex (BKC) and Rs 428 crore on additional premium by another lessee. The report remarked that MMRDA showed undue favour to the allottees by not recovering the money on time. In its latest report on general and social sector, the CAG has pointed at various discrepancies in recovering money by the MMRDA. Mumbai “MMRDA did not recover lease premium dues as per the prescribed schedule on additional built up area allowed to the lessees resulting in non recovery of Rs 855.59 crore as of March 2017,” the report said.

In one case, MMRDA had allotted (March 2012) an additional built up area of 67,000 sqm for Rs 984 crore to a company. The first installment of the 20 per cent of lease premium was to be paid immediately and balance in four equal annual installments with simple interest of 10 per cent of lease premium and penal interest at 14 per cent for delayed payments. The lessee was required to pay Rs 1,181 crore by March 2016, the report said.

Considering simple interest and delayed interest, the allotee was required to pay Rs 1,339 crore. However, it paid Rs 696 crore and MMRDA did not demand payment of remaining Rs 643 crore. After a year, MMRDA issued a notice when the dues had increased to Rs 770 crore. In another case, the MMRDA failed to recover Rs 85 crore from another lessee. The MMRDA is yet to reply on the issue to the CAG.  

“MMRDA did not recover additional premium and interest thereon amounting to Rs 428 crore from a private developer for delay in construction in contravention to the terms and conditions of the Lease Deed and the premium,” the CAG report said.