Hiranandani Gardens land 'bought at 40 paise per acre'

Mumbai: Social activist Medha Patkar has demanded an inquiry into the case of Hiranandani Gardens in suburban Powai where 230 acres of land was handed over to private developers at 40 paise (about 4 fils) per acre on an 80-year-lease in 1986.

"In order to make this possible, laws and rules were twisted, misquoted and violated to incur pecuniary benefits to the private parties but at the cost of public resources," said Patkar who heads the National Alliance for People's Movements.

She said it was a clear case of encroachment by the influential, operating as part of a nexus between builders, politicians and bureaucrats. Such encroachments are not only ignored but are formalised and legalised.

According to information available with her, more than 30,000 acres of land has been formalised by the repeal of the Urban Land Ceiling Act.

Deficit

The Powai land was originally meant for lower and middle income housing. Due to a large housing deficit, the Powai Housing Development Scheme was formulated in 1977 for the lands in the villages of Powai, Kopri and Tirandaz spread over 140 acres.

Out of these, 70.85 acres was reserved for the lower income groups. The estimated cost of Rs18.2 million was to be spent by the Bombay Metropolitan Regional Development Authority (BMRDA).

Though the government approved the scheme in June 1979, the BMRDA thereafter resolved that it had no funds. What followed was a tripartite agreement between BMRDA, the state government with the Urban Development Department and 19 land holders, with the Varma and Sharma families and N. Hiranandani as a power of attorney.

The agreement provided for exemptions from the provisions of Urban Land Ceiling Act and handing over of the land on a lease of 80 years at the rate of 40 paise per acre.

In return, the leaser had to develop the land by constructing apartments, 50 per cent of which were not to exceed the size of 40 square metres and the rest not exceeding 80 square metres.

Patkar said, "Today, it consists of 42 residential and 23 commercial buildings with no flats less than 1,800 square feet in size."