The Pune divisional commissioner and PCNDTA president, Dilip Band, said DB Reality's project investment of Rs50 crore would be reimbursed, as the work order of the plan has also been cancelled.
The central government has scrapped the Rs400-crore slum rehabilitation housing project undertaken by jailed businessman Shahid Balwa’s DB Realty Group for the Pimpri-Chinchwad New Township Development Authority (PCNDTA), near Pune.
The Pune divisional commissioner and PCNDTA president, Dilip Band, gave the information to DNA on Tuesday.
He said DB Reality’s project investment of Rs50 crore would be reimbursed, as the work order of the plan has also been cancelled.
Interestingly, PCNDTA CEO, Suhas Diwase, seemed unaware about the decision, “We are yet to receive any official letter from the state government about scrapping the project,” he said.
Diwase said the first tender for this project was floated in 2008. However, there were no bidders and so a global tender was floated the next year. Three construction firms had bid for the project — Goel Ganga, DB Reality and Panchshil Reality, led by Atul Chordia.
As revealed by DNA recently, Chordia has been identified by DB Realty as one of their business associates.
Shiv Sena MP Gajanan Babar had recently written to the state government demanding scrapping of the project and a Central Bureau of Investigation (CBI) probe into alleged “favours” shown to DB Reality. Bharatiya Vidyarthi Sena state vice-president, Sarang Kamtekar, had also made a similar allegation.
Launched in February 2009 by the PCNTDA in Sector 12, the project involved the construction of 5,000 apartments for lower income group under the basic services to urban poor (BSUP) project on 118.56 acres.
Another 1,200 flats were supposed to come up for the middle income group (MIG) and higher income group (HIG) on 12.35 acres. Under the terms, the developer was to hand over 1,200 flats of 2BHK and 3BHK to the PCNDTA, which would then sell them to citizens. The developer was also commissioned to provide infrastructure like roads, drainage system and garden in the area.
Initiated under the ministry of housing and urban poverty alleviation, Jawaharlal Nehru national urban renewal mission (JNNURM) directorate, Rs190 crore were to be provided to the builder under the JNNURM for the project.
Following Balwa’s arrest by the CBI in the 2G spectrum scam controversy, the BJP-led opposition in the Maharashtra legislative assembly had questioned the manner in which the contract was awarded to DB Realty. Chief minister Prithviraj Chavan had then stated that bids would be called afresh for the project.
When asked for an update, Pune divisional commissioner Dilip Band said the BSUP scheme had been scrapped due to paucity of funds. There was no need for re-tendering, he said.
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