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Rs 21.55 crore loss to BMC on land leased for constructing theatre

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A plot in Bandra West measuring 3,950 sq metre, which was leased out to a charitable organisation for constructing an enclosed auditorium, has caused the BMC a loss of more than Rs21.55 crore, Congress corporator Asif

Zakaria alleged at the standing committee meeting on Wednesday. Zakaria said he had got the figures (loss) from BMC's estate department.

According to Zakaria, the plot was leased to KR Foundation for a period of 30 years from May 1993, and the lease rent approved was Rs 3.6 lakh per annum.

"As per the initial approval given by the estate department and the building proposal department, the construction was supposed to be that of a ground plus 2 structure, but from 1993 to 2012, the plan was amended seven times without a no-objection certificate from the estate department. Currently, a ground plus 6 structure stands on the plot," Zakaria said.

He added that the building proposal department gave the building an FSI of 2 under DCR 33 (2). "They are still paying the same rent as in 1992. What about the rent for the additional FSI?" asked Zakaria.

"The foundation hasn't completed construction of the theatre in the last 22 years," Zakaria said.

Bandra residents, who had filed a case against the organisation in 2010, said representatives of the organisation had, at a Bombay high court hearing, promised to complete the theatre by August 2012. Following that the organisation had sought an extension for a year.

"They didn't complete the work by August 2013 or August 2014. So why didn't BMC file a contempt of court case against it?" Zakaria asked, adding that BMC also had the right to cancel the lease, which it didn't.

"BMC could also get the theatre free of cost for 20 days, which too it didn't. That way too it has incurred losses. It's important that BMC cancels the lease and also recovers the loss amount immediately," Zakaria said.

Aftab Siddique of Alm 144 said, "I have been requesting the ward to file a contempt of court case against the organisation. We want the public theatre back, it's the only BMC theatre in western suburbs."

Additional municipal commissioner SVR Srinivas said in 15 days he would get the civic administration's point of view on the subject.

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