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After AMRI Hospitals and Rosedale, the Kolkata-based Shrachi Group is now under scanner for alleged violations of PPP (public-private-partnership) agreements and civic rules in developing at least two prime real estate projects – Greenwood Nook (16 acres) and Greenwood Sonata (5 acres) – in the city.
The projects, together having nearly 750 apartments, were developed by Bengal Shrachi Housing Development Ltd, a joint venture of Shrachi Securities Ltd and the West Bengal Housing Board. The State government has already ordered an inquiry into it.
Agreement flouted
In both the cases, the State Housing Board offered prime land – as its equity in the JV – to ensure creation of adequate housing facilities, especially for the lower and medium income groups (LIG and MIG). “The total units for LIG and MIG will not be less than the 50 per cent of the total number of dwelling units,” said the agreement (copy available with Business Line ).
However, in contrast to the agreement, the private developer reportedly reserved only 33 per cent of flats out of a total of 286 apartments for LIG and MIG category at Greenwood Nook, at the posh Eastern fringes of Kolkata.
The share of LIG and MIG flats is reportedly 46 per cent at Greenwood Sonata, at New Town Satellite Township. The rest of the apartments are of premium or luxury category. Both the projects are reportedly ‘completed'.
Since LIG and MIG flats should be cross-subsidised by premium apartments, the lower share of such apartments than stipulated may lead to higher profits than initially envisaged.
While comments were not available from Mr Rahul Todi, managing director of Shrachi as well as that of Bengal Shrachi, the West Bengal Housing Minister, Mr Shyamapada Mukherjee, said the government had “ordered an inquiry into the alleged violations of PPP agreements” by Shrachi.
“We will be ready with the reports by January 2012,” the Minister said.
Mr Todi was inaccessible. Despite repeated attempts, no other Shrachi spokesperson was available for comments.
Compensation order
Meanwhile the JV was slapped with a compensation order by the by the National Consumer Disputes Redressal Commission, New Delhi, in August 2010 for not providing promised facilities to the buyers of ‘Greenwood Nook'. A special leave petition by Bengal Shrachi challenging the order was dismissed by Supreme Court.
According to petitioners, though the company paid the monetary compensation, the JV failed to fulfil other legal obligations, including provision of “completion certificate,” as ordered by the consumer commission. The aggrieved buyers have now approached the State consumer court on the same grounds.
Meanwhile, RTI documents suggest that nearly four years after declaring the ‘Greenwood Nook' as ‘complete', the developer is yet to approach the civic authorities for basic amenities such as water and sewerage connections.
AMRI & Rosedale
Shrachi is one of the Lead promoters in the AMRI Hospitals where over 90 people, mostly patients, were killed in a recent fire. The group is also facing a legal petition before the National Consumer Court for non-delivery of Rosedale luxury apartments and breach of agreements with buyers.
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