Builders protest against MHADA's proposal document

16 Dec 2021 CW Team

MHADA has added a clause saying only developers with a net worth of not less than Rs 9,000 crore as of March 31, 2021, can be allowed. It is known that the two leading developers, Godrej Properties and Prestige Group, have written protest letters to MHADA. The last day to present the proposals is Monday for the Rs 28,000 crore project spread over 143 acres, including Motilal Nagar I, II and III. Some of Mumbai's top developers told the media that they would not be able to take part due to this clause.

A top Mumbai-based developer, not wishing to be named, told the media that the bid conditions are planned to eliminate all Mumbai developers and appears to prefer a company that has no experience in redevelopment.

The financial power of the proposal, wherein the qualifying factor for the construction and development agency is to hold a net worth of Rs 9000 crore, is not just discriminatory but will exclude several intending bidders, comprising them, from taking part in the proposal. It will additionally act as an unnecessary benefit to a handful of entities who may not even have the requisite on-ground experience to render housing, accommodation or rehabilitation, as per the Godrej Properties letter. It further said that the proposal in its current form will open avenues for monopolistic efforts, which is additionally against the public policy of India.

It is legitimate anticipation from a government undertaking to render a level playing field during the tendering process, which guarantees healthy competition amongst bidders to deliver results in the best interest of the general public. And in the instant case to secure housing for slum dwellers or tenants for whom it is a subject of survival. It asked MHADA to reasonably lower or relax the rules to allow more bidders to take part which will entail better prospects for existing dwellers and MHADA.

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Mumbai's greatest redevelopment project, Motilal Nagar in Goregaon (West), is mired in controversy amidst claims that the state housing authority (MHADA) has tailor-made the proposal document to keep most builders out. MHADA has added a clause saying only developers with a net worth of not less than Rs 9,000 crore as of March 31, 2021, can be allowed. It is known that the two leading developers, Godrej Properties and Prestige Group, have written protest letters to MHADA. The last day to present the proposals is Monday for the Rs 28,000 crore project spread over 143 acres, including Motilal Nagar I, II and III. Some of Mumbai's top developers told the media that they would not be able to take part due to this clause. A top Mumbai-based developer, not wishing to be named, told the media that the bid conditions are planned to eliminate all Mumbai developers and appears to prefer a company that has no experience in redevelopment. The financial power of the proposal, wherein the qualifying factor for the construction and development agency is to hold a net worth of Rs 9000 crore, is not just discriminatory but will exclude several intending bidders, comprising them, from taking part in the proposal. It will additionally act as an unnecessary benefit to a handful of entities who may not even have the requisite on-ground experience to render housing, accommodation or rehabilitation, as per the Godrej Properties letter. It further said that the proposal in its current form will open avenues for monopolistic efforts, which is additionally against the public policy of India. It is legitimate anticipation from a government undertaking to render a level playing field during the tendering process, which guarantees healthy competition amongst bidders to deliver results in the best interest of the general public. And in the instant case to secure housing for slum dwellers or tenants for whom it is a subject of survival. It asked MHADA to reasonably lower or relax the rules to allow more bidders to take part which will entail better prospects for existing dwellers and MHADA. Image Source