Cartelization of minor minerals drives up flat prices in Raigad

12 Jun 2023 CW Team

Construction businessman and ex-corporator Haresh Keni said, “Construction prices shot up by Rs 200 per square feet and this has to be paid by the flat buyers. Supply of building construction materials is stopped if higher price is not paid to the said company which holds monopoly for such items.”

Real estate developer and MLA Parag Shah raised the issue with deputy CM Devendra FAdanvis, but nothing came of it. A meeting with the Raigad district collector was held, but nothing came of it.

The commodities in the minor minerals category are purchased by the builders from crusher units that extract these items in exchange for a royalty payment to the revenue authorities. According to market observers, a corporation supported by a few persons with ties to a Thane leader's family has a monopoly in this field, and they guarantee "extra royalty" to the government in order to continue with this immoral trade practice.

Following a meeting, Raigad collector Yogesh Mhase stated that he will investigate the monopolisation issue.

The issue first surfaced in May of this year after a corporation entered this market through a backchannel approach. Since they were instructed to only sell to this particular company, the existing crusher facilities spread out across the Panvel and Uran talukas have begun to feel the heat.

The "higher royalty offer" that was promised to the government altered how the existing crusher facilities conducted business and delivered goods to the Mumbai Metropolitan Area.

On May 15 of this year, the steering committee of the "Lokneter DB Patil 27 project affected villages" also complained to the chief minister Eknath Shinde, the deputy chief minister Devendra Fadanvis, and other relevant officials.

The PAPs body notes that due to monopolisation that has been in effect since May of this year, its units are now required to pay an additional cost of Rs 228 per metric tonne of grit and crushed sand, Rs 353 for washed sand used in construction, and Rs 243 for washed sand used in plastering. The costs were lower before this. Uran resident and NCP general secretary Prashant Patil alleged, “Mone, muscle and authoritative power was misused from the back channel to help the said company at any cost. Agreements are done from the back channel to exploit minor minerals.”

Raigad collector, Yogesh Mhase stated, “I will look into the alleged business monopoly related royalty issues and its impact on real estate sector and flat buyers once again.”

An alleged cartelisation of minor minerals such as grits, soil mixtures, and crushed stones has resulted in an increase in flat real estate prices. Due to ‘monopoly,' these building construction materials have begun to cost more, affecting the ultimate cost of the apartments. Construction businessman and ex-corporator Haresh Keni said, “Construction prices shot up by Rs 200 per square feet and this has to be paid by the flat buyers. Supply of building construction materials is stopped if higher price is not paid to the said company which holds monopoly for such items.” Real estate developer and MLA Parag Shah raised the issue with deputy CM Devendra FAdanvis, but nothing came of it. A meeting with the Raigad district collector was held, but nothing came of it. The commodities in the minor minerals category are purchased by the builders from crusher units that extract these items in exchange for a royalty payment to the revenue authorities. According to market observers, a corporation supported by a few persons with ties to a Thane leader's family has a monopoly in this field, and they guarantee extra royalty to the government in order to continue with this immoral trade practice. Following a meeting, Raigad collector Yogesh Mhase stated that he will investigate the monopolisation issue. The issue first surfaced in May of this year after a corporation entered this market through a backchannel approach. Since they were instructed to only sell to this particular company, the existing crusher facilities spread out across the Panvel and Uran talukas have begun to feel the heat. The higher royalty offer that was promised to the government altered how the existing crusher facilities conducted business and delivered goods to the Mumbai Metropolitan Area. On May 15 of this year, the steering committee of the Lokneter DB Patil 27 project affected villages also complained to the chief minister Eknath Shinde, the deputy chief minister Devendra Fadanvis, and other relevant officials. The PAPs body notes that due to monopolisation that has been in effect since May of this year, its units are now required to pay an additional cost of Rs 228 per metric tonne of grit and crushed sand, Rs 353 for washed sand used in construction, and Rs 243 for washed sand used in plastering. The costs were lower before this. Uran resident and NCP general secretary Prashant Patil alleged, “Mone, muscle and authoritative power was misused from the back channel to help the said company at any cost. Agreements are done from the back channel to exploit minor minerals.” Raigad collector, Yogesh Mhase stated, “I will look into the alleged business monopoly related royalty issues and its impact on real estate sector and flat buyers once again.” See also: Mineral production index for mining sector rose 4.6% to 129 in FebRajasthan introduces amnesty scheme for miners