Audit report indicts NMC for ‘irregularity’ in issue of TDR
* NMC pulled up for ‘neither preparing nor publishing’ priority list pertaining to TDR in the years 2010-11, 2011-12, 2012-13
Staff Reporter
Some time ago, allegations regarding irregularities in issue of Transferable Development Rights (TDRs) had rocked general body meetings of Nagpur Municipal Corporation (NMC). Now, an audit report has come as official indictment of NMC over these irregularities pertaining to lands in Mouza Borgaon.
The specific instances are brought to fore in the audit report, which the Chief Accounts and Finance Officer (CAFO) of NMC received on August 5, 2014. In the audit report, the office of Assistant Director of Town Planning, NMC, has been pulled up for neither preparing nor publishing any priority list regarding issue of TDRs in the years 2010-11, 2011-12, 2012-13. However, TDRs were issued upon receipt of such application from owners of the lands that were reserved.
This resulted into ‘undue advantage to land owners’ on account of benefit of cost difference in cost of land and cost of TDRs, states the audit report. TDRs are being utilised in localities in the same zone where land costs are high and the localities are prime, and where the land constraint bars expansion of commercial complex and are suitable for construction of appartments for group housing. The applicants in both the cases pointed out in the audit report are M/s Khare and Tarkunde Infrastructure Private Limited through ‘power of attorney holder’ M S Bhagwat.
In one instance, application for TDR was moved on May 3, 2010, and the TDR for area admeasuring 5,222.43 sq mtrs was issued on November 20, 2011. The area of land (against which TDR was sought) was 4,176.35 sq mtrs as per Development Plan, and it was reserved for primary school. The cost of the said land as per ready reckoner rate in 2011 was Rs 14,000 per sq mtr, which means the total cost of the land was Rs 5,84,68,900.
In another instance, application for TDR was moved on May 25, 2010, concerning 6,294.453 sq mtrs of land reserved for secondary school in Development Plan. The TDR was issued for 7,865 sq mtrs on December 9, 2011. The cost of land as per ready reckoner rate was Rs 14,000 per sq mtr and the total cost of the land at this rate was Rs 8,81,22,300. Thus, the total cost of lands involved in these two instances was Rs 14,65,91,200 as per ready reckoner rates in 2011.
The audit brought this to the notice of NMC. NMC replied to the audit that as per provision under Section 47 and 127 of Maharashtra Regional and Town Planning (MRTP) Act, 1966, owner of reservation site may serve notice to planning authority for acquiring land under reservation within 12 months from the date of application. If applicant fails to initiate the process within 12 months, reservation shall be deemed to have lapsed. In such cases also, NMC has to first offer option of TDR to land owner. As owner refuses the offer for TDR, seeking the importance of reservation site for planning authority, proposal for acquiring the land under Land Acquisition Act, 1894, is initiated to Collector. TDRs issued by NMC were only to the land-owners whose lands were under various Development Plan reservations, only after taking physical possession of land and after the land was mutated in the name of NMC in property card. NMC pleaded that as it got these lands absolutely free of cost, no irregularity had been done by issuing TDRs as pointed out in the audit report.
However, the audit authorities termed the reply of Assistant Director Town Planning, NMC, as ‘not tenable’ as the specific instances were not included either in the annual programme or in the priority list. As such, it was in violation of regulation No 29.19 of Development Control Regulations (DCR) of Nagpur city sanctioned by Urban Development Department (UDD), Government of Maharashtra. Also, the Development Plan reservation was not developed so far, the audit report mentioned. Further, no priority was available with NMC and no TDRs were issued during 2013-14. The audit team brought the ‘irregularity’ to the notice of State UDD.
Regulation 29.19 of DCR for Nagpur city provides that the Commissioner/Chairman Appropriate shall draw up in advance and make public from time-to-time a phased annual programme (allowing 10 per cent variation to deal with emergency development) for utilisation of TDRs in the form of development rights. The said programme prioritises revised Development Plan reservations to be allowed to be surrendered and indicating the areas for their utilisation on receiving plots. As per guidelines, Municipal Commissioner publishes priority list of the current year showing details of reservation proposed to be taken over by NMC in lieu of TDR. The owners or lessees whose lands are included in the priority list can apply for TDR.
However, the audit report pointed out that there was no priority available with NMC. And, the ‘irregular’ issue of TDRs resulted in ‘undue advantage’ to land-owners in the form of TDR value corresponding to land cost of Rs 14,65,91,200, which was generally more than the cost of land as TDR was being used in commercial or high-end residential properties in prime localities of Nagpur.
It may be mentioned here that TDR can be utilised only in the same zone, that is, TDR from areas in Zone B can be utilised in Zone B and TDR from areas in Zone C in Zone C. The prime localities like Dhantoli, Ramdaspeth, Laxmi Nagar, Shivaji Nagar, etc are in Zone B and so are areas outside city limits like Borgaon, Dabha, Wathoda, Babulkheda etc. The prime localities in Zone C include Somalwada, Khamla, Pandey Layout, Pratap Nagar, Trimurti Nagar; and outer areas of Chichbhuvan, Gorewada etc also are in the same zone. However, prime areas attract higher price than areas outside the city limits. And, this has prompted applications for issue of TDRs, especially in the past few years.
Staff Reporter
Some time ago, allegations regarding irregularities in issue of Transferable Development Rights (TDRs) had rocked general body meetings of Nagpur Municipal Corporation (NMC). Now, an audit report has come as official indictment of NMC over these irregularities pertaining to lands in Mouza Borgaon.
The specific instances are brought to fore in the audit report, which the Chief Accounts and Finance Officer (CAFO) of NMC received on August 5, 2014. In the audit report, the office of Assistant Director of Town Planning, NMC, has been pulled up for neither preparing nor publishing any priority list regarding issue of TDRs in the years 2010-11, 2011-12, 2012-13. However, TDRs were issued upon receipt of such application from owners of the lands that were reserved.
This resulted into ‘undue advantage to land owners’ on account of benefit of cost difference in cost of land and cost of TDRs, states the audit report. TDRs are being utilised in localities in the same zone where land costs are high and the localities are prime, and where the land constraint bars expansion of commercial complex and are suitable for construction of appartments for group housing. The applicants in both the cases pointed out in the audit report are M/s Khare and Tarkunde Infrastructure Private Limited through ‘power of attorney holder’ M S Bhagwat.
In one instance, application for TDR was moved on May 3, 2010, and the TDR for area admeasuring 5,222.43 sq mtrs was issued on November 20, 2011. The area of land (against which TDR was sought) was 4,176.35 sq mtrs as per Development Plan, and it was reserved for primary school. The cost of the said land as per ready reckoner rate in 2011 was Rs 14,000 per sq mtr, which means the total cost of the land was Rs 5,84,68,900.
In another instance, application for TDR was moved on May 25, 2010, concerning 6,294.453 sq mtrs of land reserved for secondary school in Development Plan. The TDR was issued for 7,865 sq mtrs on December 9, 2011. The cost of land as per ready reckoner rate was Rs 14,000 per sq mtr and the total cost of the land at this rate was Rs 8,81,22,300. Thus, the total cost of lands involved in these two instances was Rs 14,65,91,200 as per ready reckoner rates in 2011.
The audit brought this to the notice of NMC. NMC replied to the audit that as per provision under Section 47 and 127 of Maharashtra Regional and Town Planning (MRTP) Act, 1966, owner of reservation site may serve notice to planning authority for acquiring land under reservation within 12 months from the date of application. If applicant fails to initiate the process within 12 months, reservation shall be deemed to have lapsed. In such cases also, NMC has to first offer option of TDR to land owner. As owner refuses the offer for TDR, seeking the importance of reservation site for planning authority, proposal for acquiring the land under Land Acquisition Act, 1894, is initiated to Collector. TDRs issued by NMC were only to the land-owners whose lands were under various Development Plan reservations, only after taking physical possession of land and after the land was mutated in the name of NMC in property card. NMC pleaded that as it got these lands absolutely free of cost, no irregularity had been done by issuing TDRs as pointed out in the audit report.
However, the audit authorities termed the reply of Assistant Director Town Planning, NMC, as ‘not tenable’ as the specific instances were not included either in the annual programme or in the priority list. As such, it was in violation of regulation No 29.19 of Development Control Regulations (DCR) of Nagpur city sanctioned by Urban Development Department (UDD), Government of Maharashtra. Also, the Development Plan reservation was not developed so far, the audit report mentioned. Further, no priority was available with NMC and no TDRs were issued during 2013-14. The audit team brought the ‘irregularity’ to the notice of State UDD.
Regulation 29.19 of DCR for Nagpur city provides that the Commissioner/Chairman Appropriate shall draw up in advance and make public from time-to-time a phased annual programme (allowing 10 per cent variation to deal with emergency development) for utilisation of TDRs in the form of development rights. The said programme prioritises revised Development Plan reservations to be allowed to be surrendered and indicating the areas for their utilisation on receiving plots. As per guidelines, Municipal Commissioner publishes priority list of the current year showing details of reservation proposed to be taken over by NMC in lieu of TDR. The owners or lessees whose lands are included in the priority list can apply for TDR.
However, the audit report pointed out that there was no priority available with NMC. And, the ‘irregular’ issue of TDRs resulted in ‘undue advantage’ to land-owners in the form of TDR value corresponding to land cost of Rs 14,65,91,200, which was generally more than the cost of land as TDR was being used in commercial or high-end residential properties in prime localities of Nagpur.
It may be mentioned here that TDR can be utilised only in the same zone, that is, TDR from areas in Zone B can be utilised in Zone B and TDR from areas in Zone C in Zone C. The prime localities like Dhantoli, Ramdaspeth, Laxmi Nagar, Shivaji Nagar, etc are in Zone B and so are areas outside city limits like Borgaon, Dabha, Wathoda, Babulkheda etc. The prime localities in Zone C include Somalwada, Khamla, Pandey Layout, Pratap Nagar, Trimurti Nagar; and outer areas of Chichbhuvan, Gorewada etc also are in the same zone. However, prime areas attract higher price than areas outside the city limits. And, this has prompted applications for issue of TDRs, especially in the past few years.
(11-10-15)
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