Buiders owe Rs 394 cr to BMC

Did developers of 123 projects spread across Mumbai, not pay Rs 394 crore belonging to BMC? A letter by the improvement committee chairman of BMC, Anant Nar (copy available with DNA) to the BMC chief Ajoy Mehta has alleged that developers have not paid the premium amounting to Rs 394 crore to BMC.

According to Nar there are around 123 projects that were to pay a premium of total Rs 1236 crore to the BMC. However, of the total amount the developers have allegedly paid Rs 842 crore only and the remaining Rs 394 crore hasn’t been paid yet.

Nar in his letter has claimed that the Rs 394 crore that was to be paid in a period of nine years doesn’t include the interest. If interest is added the amount will increase by few more crore.

He also has asked the BMC chief to reply to the letter on why no stop work was issued to the projects that have defaulted on the payment. According to Nar, BMC charges premium from developers during construction, which has to paid phase wise, initially 20 per cent, then 60 per cent during construction and the remaining 20 per cent when they apply for Occupation certificate.

“I have given few names of developers to the commissioner, I have sought further information from him on the same issue,” said Nar.