L&T, Adani, Naman Developers submit bids to redevelop Motilal Nagar

24 Dec 2021 CW Team

Adani, L&T and Naman Developers have presented proposals to redevelop the largest residential project in Mumbai, Motilal Nagar in Goregaon (west), at Rs 35,000 crore.

Many builders have complained that the bids invited by the state housing authority, MHADA, have been rigged and tailor-made to benefit some developers. The three proposals obtained will be analysed over the coming few days, and a decision will be taken shortly, according to the chief of MHADA’s Mumbai board, Yogesh Mhase.

Two leading developers, Godrej Properties and Bengaluru-based Prestige Group, formally objected and wrote to MHADA regarding a controversial clause in the bid, which makes most builders unqualified for the major agreement. The clause states that only developers with a net worth of not less than Rs 9,000 crore as of March 31, 2021, can be eligible.

The clause in the tender was compulsory as MHADA was only following Central Vigilance Commission policies. According to them, the guidelines mandate that the bidder’s net worth should be at least 30% of the project value.

Godrej Properties claimed in a letter to MHADA that the qualifying factor of Rs 9,000 crore is discriminatory and eliminates other bidders, comprising Godrej.

It will additionally serve as an undue benefit to a handful of entities who may not even have the required on-ground experience to deliver housing, accommodation or rehabilitation, said the letter. Motilal Nagar was constructed in the 1960s as a rehabilitation and resettlement colony for residents displaced from different areas in the city and suburbs.

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