Published On : Mon, Jun 9th, 2014

NIT passes undue favors to Nandanvan contractor to lease its valuable land

nitNagpur News.

The rampant irregularities have badly marred the functioning of Nagpur Improvement Trust for some time now. Most of the targets regarding city’s infrastructural development have been lying in a fix, thanks to the massive corruption reaching crescendo in NIT. And the latest in question is NIT’s 2.5 acres of land valuing in crores of rupees handed over to the contractor, said to be close to one of the NIT trustees, for a period of 90 years.

The land has been allegedly given for construction of a high-end bus stand Complex at the cost of Rs 46.80 crore. And after completion of the bus stand complex, the contractor will return Rs 45 crore to the NIT in a period of 90 years. Moreover, the “big-hearted” NIT trustees have given contractor the permission to mortgage the costly land if need arises, according to NIT insiders who wished not to be named.

According to contract, the bus stand complex will have the luxury of hotels, restaurants, swimming pool and other facilities. Sources said the NIT first created a system and then negotiated an agreement with Latakishan Constructions Pvt Ltd on April 29, 2014 for the land at Khasra No. 576, 324/1. The land, admeasuring 10132.775 sq mtr (about 2.5 acres), is situated at Jagnade Square on Great Nag Road. The NIT has given the land to the contractors on Built Finance Operate & Transfer scheme basis. The firm (contractor) Latakishan Constructions Pvt Ltd has Rai Group of Industries and Rahate Surgical as key partners. According to terms of contract, the NIT will give 30-30 years of extension to the firm after the initial lease period of 30 years. Similarly, the Trust will give mortgage right for first five years and then extend for maximum 20 years.

The contractor, in accordance with contract terms, has deposited Rs 2 crore towards Performance Security which will be returned five years after the project is completed. Similarly, the firm has deposited Rs 50 lakh as EMD. The contractor has been given lease hold right of the land for 30 years which subsequently be extended by 30-30 years from time to time. A total of Rs 13,00,77,777 will have to be deposited by the contractors from 2014 to 2020 in the form of premiums. The NIT will earn Rs 51,24,000 per year from the project.

The project comprises of bus terminal with Bus Base-14, Idle Bus Base-19, Ticket Counter-1, Restaurant and Food Kiosk-2, Courier Office-1, Transport Office-1, Personalized Waiting Area-6, and Maintenance Committee Office-1. The space exactly above the terminal will have 31 blocks for offices, 31 blocks for shops apart from upcoming hospital having 69 general beds, ICCU-20, Operation Theatre-1, and Pharmacy-1. A 90-Room Budget Hotel (Yatri Nivas) will be constructed on the space admeasuring 7003 sq mtrs.

All said and done, the moot question is: Is NIT short of Rs 26 crore to complete the project on its own? If yes, can NIT not take loan from nationalized banks?

But the NIT officials, who are more interested in vested interests of Trusties than the Trust itself, turned the Nelson’s eye towards the rational fact for obvious reasons. The officials, for their own heavier pockets and for benefit of the Trusties, have offered a lucrative business to the said notorious contractor on a platter and that too under pressure from the “Godfather Trusty.” The officials have ensured one thing perfectly — a business empire for the notorious contractor to be run for three generations to come at the expense of NIT’s goals.

Rajeev Ranjan Kushwaha(