What is intriguing is that the MHADA background note attributes this letter to none other than Housing Secretary Govind Swaroop. In the letter, a copy of which is available with Express Newsline, Swaroop informs Megh about the state government's decision to award the contract to construct 10,000 transit tenements in Mumbai to M/s B G Shirke Construction Technology Limited (BGSCTL). He also asked for MHADA's present financial status.

The background note, which was circulated among the seven board members, also clearly mentions that if the contract is awarded to BGSCTL, MHADA would suffer a loss of at least Rs 168.51 crore. It adds that at present MHADA has just Rs 32 crore to its account.

The note goes on to mention that the land proposed to be used by BGSCTL at Malvani is occupied by over 300 tribals and will not be usable till they are rehabilitated. Moreover, it states, the Brihanmumbai Municipal Corporation has not given water connections to thousands of tenements already constructed by BGSCTL in different parts of the city.

The note, which is loaded in favour of BGSCTL, states: ``The secretary, Housing and Special Assistance Department, has written a letter numbered BGS/1099-PP 61-SPP without a date and unsigned to MHADA vice-president and chief executive officer. The secretary has informed that it has been decided vide Government Resolutions HSG-3384/[64]/D.6, dated 11-12-84 and BGS 1099/CN 53/SPP, dated May 31, 1999, to award the contract of constructing 10,000 transit tenements on MHADA land to M/s B G Shirke and Company.

``However, a contract to construct 5,000 tenements at Dindoshi and Malvani should be awarded initially. After confirming progress of this work, contract to construct another 5,000 tenements at Sion or any other place be awarded within 6 to 8 months,'' the note states.

About the losses MHADA would incur on awarding the contract to BGSCTL, the note reads: ``Estimated total investment in this scheme is Rs 415.66 crore and the expenditure in fiscal 1999-2000 on this scheme is expected to be Rs 159.40 crore. However, if MHADA does not refuse the proposal, it will have to bear a loss of Rs 168.51 crore in this scheme. This loss will be the result of downfall in the real estate market. Moreover, this scheme can not be implemented on a `no profit no loss' principal.'' Still, the board, which is dominated by Sainiks, awarded the contract to BGSCTL.

Expressing surprise at the unsigned letter, Swarup said: ``If I have not signed the letter, I have not written it obviously. I am surprised to know of this letter. May be some deputy secretary has written the letter and I am not really aware of it. Nor did I attend the board meeting. However, it was the housing minister's decision to award the contract,'' he said.

Asked why the contract was awarded despite the losses that will accrue, Swarup said the calculations are inaccurate. ``I do not know how MHADA has calculated the loss. If the tenements are being used as transit camps, they become MHADA's property. Since they are not for sale, there is no question of MHADA facing a loss,'' he reasoned.

Vilas Avchat (Sena), who was president of MHADA when he contact was awarded, claims no such letter was received. ``I did not receive any letter from Swarup. And there is absolutely no question of MHADA facing any losses in this project. The BJP is opposing the proposal for the sake of opposition.

The allegations are baseless,'' he said. However, Madhu Chavan (BJP), who was chairperson of the MHADA's Mumbai Building Repair and Reconstruction Board, admits that the letter was received and the background note did indeed apprise the board members about the letter. ``It is surprising how the vice-president accepted such a letter and the administration processed the same. The note did mention the letter and the huge loss MHADA would incur. Hence, I opposed the proposal as I did not wish to be part of a suspicious deal. I have informed my party bosses about the decision taken at the meeting,'' he said.