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30 December, 1997

Plan to lift ban on mill land development referred to Election Commission 

Sanjay Jog  
MUMBAI, Dec 29: Maharashtra chief electoral officer (CEO) DK Shankaran on Monday referred the state government's proposal to lift the ban on land development by city textile mills to the Election Commission. The CEO is believed to have resorted to this move to avoid the EC's wrath on the eve of the general elections.

Mantralaya sources said that the government has decided to go slow on the vexed issue of sale of land by city textile mills to avoid further criticism from opposition parties during electioneering. The government's ban, imposed since February 29, 1996, has stayed the land development by Kamala Mills, Shreeram Mills, Raghuvanshi Mills and Swan Mills. These mills have already approached the government, the Board for Industrial Finance and Reconstruction and the Appelate Authority for Industrial Finance and Reconstruction for the lifting of the ban.

Sources said that the government has already lifted the ban on land development by Khatau Mills, Modern Mills, New Great Eastern Mills and Matulya Mills in the wake of an ultimatum from the BIFR. In case of Shreeram Mills, the government appealed to the BIFR and the AAIFR to postpone the hearing till January 22 from January 22. Had the government failed to seek additional time, it would have faced contempt proceedings.

The government would also not like to clear the land development by these mills as it has announced a fresh inquiry last week into the alleged violation of Development Control Rules. The probe would be conducted by the principal secretary (urban development), K Nalinakshan.

Shreeram Mill has sold out its administrative building to various companies without seeking the necessary permission from the state government. BIFR had cleared its revival package on July 20, 1994, and the Sharad Pawar government had given its clearance on October 10, 1994, to sell 1,20,000 sq ft land of which 60,000 sq ft would be for residential purpose and remaining for development under section 58 (1) (a) (iii).

Incidentally, Shreeram's proposal to develop and sell additional land of 28,000 sq mt under section 58 (1)(a) (iii) had already been cleared by the Appellate Authority for Industrial and Financial Reconstruction. Though Kamala Mill was given a commencement certificate (CC) by the Mumbai Municipal Corporation (MMC) for construction up to the first floor, it has constructed more than four floors. Realising the violation, the mill had sought MMC's approval for making the construction an authorised one.

Interestingly, the MMC has stayed the construction activity since June 2 this year on account of its inability to regularise the construction.

Kamala Mill's rehabilitation package was cleared by the BIFR on July 6, 1993 and the Congress government had given its consent on December 29, 1993, for the sale of 10,000 sq mt of land.

BIFR has allowed Raghuvanshi Mill to give its built-up area on rental basis under DC Rule 58 (1) (a). However, the state government has yet to receive the necessary scheme from the mill.The government sources said that such an approval was contrary to the provision of DC Rule 58 (1) (a). Under the same rule, the existing or newly built-up areas could be utilised for the same cotton textile or related user subject to permissible FSI and for diversified industrial users. The government would conduct probe into the matter.

Raghuvanshi Mill's revival package was cleared by the BIFR on October 18, 1993, and former Congress government gave its consent on October 30, 1993, for the sale of 62,000 sq mt.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.



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