The Brihanmumbai Municipal Corporation (BMC) has received only two bids for the auction of its Municipal Testing Laboratory (MTL) plot in Worli. The BMC had floated a tender last month to auction the prime Worli plot for commercial exploitation. One of the two bidders is expected to be selected based on the highest price offered over the BMC's base price of Rs 455 crore.
Opposition Demands Stay
The opposition had demanded that the auction be stayed. City Congress president Varsha Gaikwad alleged that the BJP-ruled BMC is gifting this plot to their favorite builders to construct a five-star hotel on BMC property. Samajwadi Party MLA Rais Shaikh said that the BMC must formulate a policy for auctions after consultations with all party group leaders to avoid such ad hoc auctions. So far, the BMC has not paid heed to these demands and has proceeded with its auction plans, Shaikh added.
Bids Received and Scrutiny
Two bids were received from Skylark Buildcon Private Limited and Skystead Constructions LLP. The law department reviewed all documents submitted by the bidders regarding their title, registration with the Ministry of Corporate Affairs or competent authority, litigation history, and other aspects. After scrutiny, both bidders were found responsive, said a senior civic official. The bids were examined by the BMC committee led by joint municipal commissioner (improvements) Sanjog Kabre. The price bids will be opened this week.
Allegations of Rigging
Varsha Gaikwad alleged that the builders are offering the BMC only Rs 455 crore and just 1,300 square meters of space for its lab. She demanded that the BMC stop the auction immediately, claiming that the auction conditions have been rigged to suit only particular favorite builders who want to gulp this plot and make windfall profits through a five-star hotel. She called for a debate on auctioning BMC properties before the BMC Group Leaders and said that ad hoc auctioning of prime BMC properties must be stopped immediately, labeling it a multi-crore scam.
Eligibility Conditions Criticized
Rais Shaikh alleged that the eligibility condition requiring previous experience in redeveloping three BMC properties in the last ten years is restrictive and drafted to gift the plot to select favorite builders of the BJP. The plot, spread across 5,166 square meters, falls in a residential zone.
Background and Previous Tenders
The auction plan was approved by then Municipal Commissioner Bhushan Gagrani days before he retired on March 31. After winning the auction, builders can construct residential or commercial towers on the plot. The BMC had canceled tenders for the redevelopment of the plot housing its testing lab three times following allegations of cost escalation and irregularities. In all three tenders, the BMC planned to build a multi-story robotic parking tower on the plot along with commercial units, but now it has decided to auction the plot for a base price of Rs 455 crore for 30 years, extendable for another 30 years. Apart from the premium paid to the BMC, the developer will have to construct and hand over 1,300 square meters of office space to the BMC for its testing lab. The builder will also need to make temporary arrangements for the testing lab until the new office space is ready.
