The Mumbai Metropolitan Regional Development Authority has slapped a notice on the Mumbai Cricket Association for using a prime plot of land of about 13 acres allotted in Bandra Kurla Complex for commercial purpose in violation of the terms of the lease agreement.
Media reports published in December 2014 had claimed that a similar notice was issued to the MCA in February 2014. However, Right to Information activist Anil Galgali who had released the information to the press told Scroll that it was a draft notice which was never issued.
It is only now that the notice has finally made its way to the association which is headed by former agriculture minister and National Congress Party chief Sharad Pawar. The indoor cricket academy built on the disputed plot of land, inaugurated in December 2007 by Sharad Pawar, is also named after him.
Issued on June 3, the notice asks Pawar, the president of MCA, to “rectify the breaches” within three months or MMRDA would terminate the agreement and take back possession of the land. Scroll has a copy of the notice which was obtained under Right to Information Act by Mumbai-based activist Yashwant Shinde.
Alleged violations
On March 5, 2005 the MCA was allotted a plot measuring 52,157 square kilometres (about 13 acres) in Bandra Kurla Complex on a lease for 80 years for which MMRDA charged Rs 2.66 crore. The lease agreement allowed for the construction of an indoor cricket academy, besides swimming pool, tennis courts, cricket nets and other facilities on 15% of the total area allotted. These facilities could be used by the students of the cricket academy but could not be put to commercial use.
In addition, under the agreement, the MCA could not sell, mortgage, assign, underlet or sublet any part of the property without the prior consent of the MMRDA. After it obtained consent, the MCA would need to pay 10 percent of the stamp duty on the transfer of the land. The agreement also said that in case of any breach of the provisions, the MMRDA could take back the possession of the land.
However, on 12 December 2005, the MCA entered into a commercial deal with Shirke Infrastructure by way of a concession agreement. According to the MMRDA notice, the concession agreement gave Shirke Infrastructure the right to finance, develop, construct, commission, operate and maintain the indoor cricket academy and other facilities on a commercial basis for 17 years.
The concession agreement also allowed the infrastructure company to put the property to commercial use by charging user fees for the indoor cricket academy and other facilities. It gave the company exclusive right and authority to operate and maintain the academy facilities. All of this was done without the prior consent of MMRDA.
The MCA has denied all the charges against them. “We have not flouted any provisions of the contract. It appears as if the MMRDA has misread the concession agreement,” said MCA vice-president Ravi Savant.
On the allegation that the plot had been put to commercial use, Savant said that the MCA was not making any profit out of the academy. “It would be difficult to maintain such a massive property without having any user fee charges," he said. "Whatever revenue the academy is generating is only for the purpose of operating the facility." The MCA will be responding to the notice soon, he added.
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Media reports published in December 2014 had claimed that a similar notice was issued to the MCA in February 2014. However, Right to Information activist Anil Galgali who had released the information to the press told Scroll that it was a draft notice which was never issued.
It is only now that the notice has finally made its way to the association which is headed by former agriculture minister and National Congress Party chief Sharad Pawar. The indoor cricket academy built on the disputed plot of land, inaugurated in December 2007 by Sharad Pawar, is also named after him.
Issued on June 3, the notice asks Pawar, the president of MCA, to “rectify the breaches” within three months or MMRDA would terminate the agreement and take back possession of the land. Scroll has a copy of the notice which was obtained under Right to Information Act by Mumbai-based activist Yashwant Shinde.
Alleged violations
On March 5, 2005 the MCA was allotted a plot measuring 52,157 square kilometres (about 13 acres) in Bandra Kurla Complex on a lease for 80 years for which MMRDA charged Rs 2.66 crore. The lease agreement allowed for the construction of an indoor cricket academy, besides swimming pool, tennis courts, cricket nets and other facilities on 15% of the total area allotted. These facilities could be used by the students of the cricket academy but could not be put to commercial use.
In addition, under the agreement, the MCA could not sell, mortgage, assign, underlet or sublet any part of the property without the prior consent of the MMRDA. After it obtained consent, the MCA would need to pay 10 percent of the stamp duty on the transfer of the land. The agreement also said that in case of any breach of the provisions, the MMRDA could take back the possession of the land.
However, on 12 December 2005, the MCA entered into a commercial deal with Shirke Infrastructure by way of a concession agreement. According to the MMRDA notice, the concession agreement gave Shirke Infrastructure the right to finance, develop, construct, commission, operate and maintain the indoor cricket academy and other facilities on a commercial basis for 17 years.
The concession agreement also allowed the infrastructure company to put the property to commercial use by charging user fees for the indoor cricket academy and other facilities. It gave the company exclusive right and authority to operate and maintain the academy facilities. All of this was done without the prior consent of MMRDA.
The MCA has denied all the charges against them. “We have not flouted any provisions of the contract. It appears as if the MMRDA has misread the concession agreement,” said MCA vice-president Ravi Savant.
On the allegation that the plot had been put to commercial use, Savant said that the MCA was not making any profit out of the academy. “It would be difficult to maintain such a massive property without having any user fee charges," he said. "Whatever revenue the academy is generating is only for the purpose of operating the facility." The MCA will be responding to the notice soon, he added.
In the notice, the MMRDA has asked the MCA to rectify the breaches within 3 months, failing which, the lease deed will be terminated.