Brihanmumbai Municipal Corporation (BMC) opposes the project to construct ten 14-floor towers and nine 7-floor towers on a prime land in Mumbai.
The civic body argues that the land marked as a beggars’ home in the Development Plan should be used only for public welfare and cannot be given to a private developer.
According to a deal entered into in 2008, Joynest Premises will build a colony on nine acre of the plot. In return, the developer will give the state Rs 334 crore worth of buildings and a premium of Rs 11 crore.
The public accounts committee of Maharashtra state legislature also criticised the deal. Considering the rising land prices in Mumbai, the 99- year agreement with the developer and the grant of 40,000 sq m of land for private construction makes it clear that the government has entered into a loss-making venture, said a report of the committee.
The PAC added that there were a lot of contradictions in the agreement, which it said was drawn up with the main intention of ensuring that the developer got maximum benefit.
Recently, the project received approval from the State Level Expert Appraisal Committee, the state’s primary environmental committee.
BJP MLC Girish Bapat, who is the chairman of PAC, said he in fact recommended the cancellation of the deal, but the government did not listen to him.