Reliance owes MMRDA Rs.1577 crore
According to an RTI filed by Anil Galgali, Reliance Industries Limited is Mumbai Metropolitan Region Development Authority's (MMRDA) biggest defaulter. Reliance's dues to MMRDA are Rs.1577 crore and are with respect to pending premium charges as a lease-holder of two plots in the Bandra Kurla Complex. Galgali wrote to Maharashtra's CM demanding that dues be recovered immediately and land re-allotted to the highest bidder.
The RTI Inquiry
Mumbai-based activist, Anil Galgali in an RTI inquiry requested a list of MMRDA defaulters in all categories of lease-holders. The MMRDA's list included details of private and government lessees and public sector organizations that had defaulted. According to government norms, in the event lessees don't initiate construction in stipulated time, they are liable for additional premium charges to MMRDA for 'holding' prime real estate.
Reliance's position on MMRDA dues
Reliance attributed the delay in construction to the legal dispute between the Ambani brothers. A Reliance spokesperson, said MMRDA acknowledged 'force majeure' with respect to one plot as there was a court-ordered stay on construction. He added that MMRDA decided to appoint a committee to consider an extension of the construction period for 4-6 years. However, the committee's opinion is still awaited by Reliance.
Force majeure
Force majeure is a legal term that encompasses unforeseeable circumstances which may prevent a person from executing or fulfilling their contractual obligations.
MMRDA's position
A senior MMRDA official stated that Reliance had been sent a notice for dues for one plot. Dues from Reliance were discussed in August 2015 at an MMRDA meeting chaired by CM Devendra Fadnavis. MMRDA's Commissioner pointed out that if dues were recovered for time excluding court-ordered stay, the dues would amount to Rs.53 crore. Legal opinions have been sought to conclude the issue.
