ACB raises questions about Andheri plot in Maharashtra Sadan scam charge sheet

A probe conducted by the Maharashtra Anti-Corruption Bureau (ACB) into the alleged Maharashtra Sadan scam has revealed that the public works department (PWD) had discussed the development of an Andheri RTO plot in a Cabinet Infrastructure Committee (CIC) meeting despite the plot's development being opposed by the then chief secretary, principal secretary for planning and secretary of finance. The profit percentage to the developer of the project, too, was wrongly provided in the meeting, which later was admitted by currently-serving PWD officials .

This startling detail has been revealed by the ACB in its charge sheet filed against former PWD minister Chaggan Bhujbal and 16 others in the alleged Maharashtra Sadan scam.

According to the ACB, the development of the open plot was not in the purview of the CIC. The CIC meeting was held on August 28, 2006. "The probe revealed that nowhere was it mentioned/included in a government resolution (GR) that it can do something for the development of the open plot. The committee had discussed various topics on which the committee was supposed to take decisions, but the development of the open (Andheri RTO) plot was never included in that agenda of the meeting. Despite this, the open plot's development was discussed in the meeting. Since others present in the meeting had not done any homework on the subject and people normally do not oppose suggestions given by others in such meetings, fearing that their own suggestions too would be opposed, sanction was given in the committee meeting to go ahead with the project concerning the open plot," said an ACB official.

In the meeting, the PWD had stated that the developer will get 1.33% profit on the project for the overall development of the Andheri RTO plot. However, when the ACB calculated the profit, they learnt that the developer will get benefits of as high as 81% from the development project. "The said calculation was shown to the currently-serving PWD officials and they have admitted that the earlier calculation done by the PWD was wrong," the official said.

As per sources, the then principal secretary (planning department) had initially opposed the said development in lieu of the revamp of Maharashtra Sadan. "The principal secretary had stated that there is a huge difference between the ready reckoner price and the market price of the plot's FSI and had suggested that the PWD clear this issue, but the PWD never acted on it," the ACB official said.

In his statement to the ACB, the principal secretary had stated that it is not proper to tag the RTO plot project with the SRA project as this would result in a loss for the government. The principal secretary had instead suggested that the government itself should get rid of the encroachment on the plot and the government itself should develop the plot.

The then chief secretary, too, had told the ACB that the PWD had not followed the norms.

The then secretary of finance had, in fact, opposed the entire concept in January 2006 itself. The secretary of finance had stated that the government should invite a tender for competitive bidding. Despite this, on March 29, 2006, Chhagan Bhujbal held a meeting and directed his then PWD secretary to present the project in the cabinet.

Background of the case

On June 11, 2015 the ACB had registered an FIR against 17 people allegedly connected to the Maharashtra Sadan scam, including former PWD minister Chhagan Bhujbal. In its FIR, the ACB has named not only Bhujbal but also his son Pankaj, nephew Sameer, some members of the Chamankar family, former officials of the PWD department, two contractors and employees of Mumbai Education Trust (MET) owned by Bhujbal. The three contracts to construct the Maharashtra Sadan were awarded to KS Chamankar's firm. According to the FIR, the accused cheated the government to ensure that Chamankar got financial gains. The ACB in its charge sheet, filed in March 2016, has alleged that rules were blatantly violated in order to favour the developer. The developer was told by the accused persons that if he wanted to develop a plot in Andheri, then in lieu of that he would have to construct the sadan and another government property at Malabar Hill, the agency has alleged in its charge sheet. One of the accused, developer Krishna Chamankar, who was developing a slum that neighboured the Andheri RTO plot, was told that the PWD would allow him to develop the Andheri RTO plot and in lieu of that, he would have to develop Maharashtra Sadan in Delhi and another government property in Malabar Hill.