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Pune-based Kakade Group sows Rs4 crore, reaps Rs250 crore

The developer obtained rights to develop this plot in exchange for building government offices and guesthouse in another area in Pune.

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The Maharashtra government is planning to take action against the Pune-based Kakade Group for irregularities in the construction of a mall on four acres of prime government land at Dr BR Ambedkar Road, Camp, in the city. The developer obtained rights to develop this plot in exchange for building government offices and guesthouse in another area in Pune.

After allegations that there were several irregularities in the project — including that the developer had made major changes to the approved architectural plan and had illegally appropriated and sold more space than it was entitled to — the government initiated a probe by deputy chief architect, Pune.

DNA obtained the confidential probe report under RTI that confirms that the developer indulged in several irregularities while developing the plot on which Kakade Magnum mall (now known as SGS mall) stands.

The government is now planning to demolish the unauthorised component of the mall. “As part of the administrative procedure, all irregularities in Kakade Magnum mall will be inspected and subsequently, demolition drive will be carried out. We cannot help it if the developer has already sold the illegal units to buyers; we will go by the rule book,” said a senior government official who requested not to be named.

According to the report obtained under RTI, Kakade took over 9,618 sq mt of space against the 7,540 sq mt he was entitled to. The probe further reveals that during construction, the developer allocated 1,586 sq mt of space for vague uses like corridors, additional height, balconies and lofts. “Eventually, this space will also be converted into commercial space and sold in the open market.

As per plan, Kakade should have kept 62 car parking slots against the 210 that were finally created. Instead of 124 slots for parking scooters, only 130 have been created and where the plan showed 124 slots for parking bicycles, the developer has not left any space for bicycles at all. Because of this, developer has got additional 148 car parking slots and 1,850 sq mt of space here,” said the report.

Local activist Pramod Patil brought the irregularities to the attention of the government in a letter to the CM in July 2010. Seeking a probe against the developer, the letter said: “Kakade spent only Rs4 crore to develop the government administrative buildings and a VVIP guest house, and in return earned around Rs250 crore by selling various commercial shops in its Kakade Magnum mall… Chief minister should not only take action against the developer but PWD officials involved should be also punished”.

A leading Pune-based developer says Kakade would have made a profit because of the extra parking spaces constructed. “In Camp area in Pune, there is huge shortage of parking slots. So, Kakade can make good money by renting out space for car parking,” the developer said, adding that merely blacklisting Kakade Infrastructure is not punitive action enough, and the government should permanently ban the developer from bidding for any government project.When contacted, N H Jalkote, chief engineer, PWD — Pune region, refused to speak on this issue. Repeated calls and SMSs to Sanjay Kakade seeking his response to the case went unanswered.

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