NMC extends deadline for construction of Danaganj mall by one year

Nagpur: The Standing Committee of Nagpur Municipal Corporation (NMC) has extended the deadline for construction of commercial complex being built on land owned by the civic body in Danaganj area. The Committee extended the financial closure period of Orange City Malls Private Limited, the firm constructing the mall. The deadline for completing the construction is now September 2018. The civic body extended the deadline for one year. If the developer fails to complete the work within stipulated time, then the local body will levy penalty of Rs 10,000 per day and recover it from the developer. The committee has also approved the supplementary agreement negotiated with the contractor.

The tender of Danaganj mall was prepared by the NMC’s Pench Project Department on the basis of BOT (Build-Operate-Transfer). However, according to the tender, the NMC had claimed that it had received NOC from Environment Department for construction of the said mall. But in today’s meeting of the Standing Committee, seeking of environmental clearance was raised. Moreover, in the tender the area for the mall was shown as 16785 sq mtr. But in reality, it was 16034. This fact adversely affected the building plan and utilisation of FSI.

The NMC had, on May 8, 2014, made an agreement with Orange City Malls Private Limited for construction of the said mall. The project was supposed to be completed by September 2017. But since the financial closure period was not over in the stipulated time the mall construction was not completed. Hence the deadline was extended till September 2018.

The contractor has to construct a 24-metre wide road on the western side of the mall. But the area has been occupied by encroachers. Some part of the area was rid of encroachment in March 2017. NMC is claiming that the entire area would be freed from encroachment. But the problem is a religious structure. The land also belongs railways that has so far not given NOC for any construction on its land.