MSRDC backtracks,revokes termination notice of DB Realty

MSRDC chairman Jaydatt Kshirsagar said,“It is a minor work,so we have decided to give DB Realty an extension in deadline.” Kshirsagar is also the minister for public works department (public undertakings),a portfolio held by the NCP.

An MSRDC official,who did not wish to be named,said the corporation is hesitant to actually terminate the contract and has decided to give in to the company’s request for another extension as it is unsure of any other firm being able to match the yearly lease amount that DB Realty pays.

DB Realty is paying MSRDC Rs 99 lakh a year,which was the highest bid that the MSRDC had received in 2010. The company with the second-highest bid was offering Rs 24 lakh a year.

MSRDC sources said the work had slowed down after DB Realty promoters Balwa and Vinod Goenka were named among the accused in the 2G spectrum allocation scam in 2011.

In 2010,MSRDC signed a lease agreement with DB Realty and handed over the 1.5-km promenade to the real estate major for 15 years for advertising rights,as well as its beautification and maintenance. DB Realty was to spruce up the seaside by creating a sea edge,road edge and a jogging track.

The beautification plan included building a cafeteria,amphi-theatres and structures depicting the seven islands that form Mumbai. The promenade was also supposed to have a sit-out for people and a separate area for meditation. The work was to be completed in January 2011. However,apart from the walking track that was completed in September this year,the company has not finished any work despite several ultimatums and deadline extensions.

In September,MSRDC had sent a notice to the company saying the contract for beautification in exchange of a 15-year lease and advertising rights will stand terminated as of September 30,saying no work was being carried out and the company had failed to honour its commitments. Officials had then said MSRDC would issue fresh tenders to choose a different company and complete the work.

manasi.phadke@expressindia.com