Mihan Land Scam-MADC supports brazen violations by First City

Mihan Land Scam-MADC supports brazen violations by First City

MADC is turning Nelson’s Eye towards brazen violations by M/s Reatox Builders who are constructing First City project in non-processing zone of MIHAN-SEZ area. Despite a categorical provision about using housing units within SEZ only by persons directly connected with SEZ establishments and SEZ employees, the developer is going ahead with open sell to general public.

The latest guidelines issued by the Union Commerce Ministry (SEZ Division), for development of SEZs had stipulated clearly that housing facilities created in non-processing area could be used only by "persons who are working for establishments relating to SEZ developers, units and or are users of infrastructure facilities created in the SEZ."

Even, the Board of Approvals (BoA), the apex decision making body for SEZ, had consistently maintained that no developer or co-developer can sell the land or residential dwelling and extended this principle to First City coming up at MIHAN-SEZ promoted by MADC. The BoA in its meeting held on July 13, 2010 had directed the MADC to remove the "condition of sale" from the agreement between developer (MADC) and co-developer (M/s Reatox Builders) as well as from the Power of Attorney granted by MADC to M/s Reatox Builders which is coming with First City in MIHAN-SEZ. The Department of Revenue had consistently objected to open sale of housing units by developers and demanded that the condition of sale must be removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.

The MADC in its affidavit before the High Court had maintained that First City project is meant for SEZ employees only and had opposed relocating project affected persons in the project. But contradicting its own stance taken on affidavit, the MADC has now permitted M/s Reatox Builders "to sell the flats to anybody in the world." Several social organisations have already lodged strong complaints with the Chief Minister, Commerce Ministry and CBI to probe the nexus between MADC boss R C Sinha and M/s Reatox Builders.

The Vidarbha Jan Andolan Samiti (VJAS) has recently lodged a complaint with the CBI to probe "highly improper loan scheme extended by Vijaya Bank to First City project of M/s Reatox Builders." The VJAS has also requested Union Finance Minister, Reserve Bank of India and Finance Secretary to probe the role of Vijaya Bank top officials and find out whether there was any unholy nexus between developer and Bank, since the builder was offering flats within SEZ area to general public, flouting all norms.

According to VJAS, the Vijaya Bank has agreed to finance upto 90% of the housing value, which is contrary to Home loan norms finalised by RBI. No bank can lend more than 80% of the total value of the housing unit, the guidelines issued on November 3 has stated. Kishor Tiwari of VJAS while expressing surprise as to how a nationalised bank can show such a generosity towards First City project, which too is under cloud for selling flats to outsiders.