Lens on Rs 20,000 cr mill land ‘scam’
Investigation has been taking place into National Textile Corporation (NTC) proposal to revive several of its prime properties in Mumbai and Aurangabad by the Central Bureau of Investigation. There is a suspicion for which this investigation is taking place and which is probably that mill land worth over Rs 20,000 crore was being diverted for non-textile activities, against the original plan.
CBI investigation is focussed on an NTC board decision of 2007 that it is to go in for joint ventures with private players to revitalize its stopped mills in Mumbai and Aurangabad as per the dependable sources.
Decision has been taken by NTC to revive its closed mills through entering into joint ventures with private players, with NTC holding 51 percent and the private player 49 percent in the new JVs.As per the original proposal leasing period for the land is 33 years and the private partner was to invest all the funds required for their revival. As per an open tender process, NTC decided the worth of the 49 percent stake of the private players, and other qualifications.
As stated by CBI sources, among those selected for the project at least three major business houses were there. Some of the mills selected for the revival includes Mumbai based Apollo Mills, Goldmohar Mills, India United Mills No 1, and New City Malls, and Aurangabad Mills in Aurangabad.
As per the sources, the process of selection of private partners for the project are also been looked by the investigators.
On an average each of the partners invested around Rs 100 crore in the JV as the value of their equity and investment contribution. Though investigations interpret that no work has been done in the mills for textile production.
CBI is looking at a range of aspects of the whole project, according to the sources. The main point to be analysed is that what happened to the money brought in by the private partners. There is a suspicion by investigators that the money has been routed out from the JVs.
NTC mills
As per the accessible information the lease of NTC mills to the JVs has been afterwards transformed from the original 33 years to 99 years.
Sources informed that there is no obtainable reason to suspect that the purpose may not have been to revive the mills but to expand the precious real estate for other purposes.
Already investigation is going on by CBI, the former chairman-cum-managing director of NTC, Ramachandran Pillai, and New Jack Printing Press Private Ltd for creating losses running into hundreds of crores of rupees. As per CBI suspicion Pillai preferred the company by shifting ownership rights of a plot owned by NTC in Parel, Mumbai to the private company.
New Jack Printing Press has taken a plot measuring 4080 square meters on lease but it was not allegedly paying the rent which had accumulated to over Rs 90 crore. Later the NTC decided to sell the land at Rs 17.5 crore in 2007 to the same company.
Tags: New Jack Printing Press, NTC,CBI, Ramachandran Pillai, Parel, Mumbai, JVs, Textile production, Investigators, Business houses, Mumbai based Apollo Mills, Goldmohar Mills, India ,United Mills No 1, New City Malls, Aurangabad Mills
Source: Times of India
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The real estate arm of Godrej Group, Godrej Properties has formed a partnership with SSPDL Green Acres LLP to build up a residential project at Padur on OMR (Old Mahabalipuram Road) on the periphery of Chennai.
The proposed project will be near Siruseri IT Park and will be spread over seven acres and 93,000 square metre of saleable area. It will comprise of one, two and three bedroom apartments and will be developed as a modern group housing residential development project.
Pirojsha Godrej, managing director and chief executive officer, Godrej Properties, alleged we are pleased to build our second project in Chennai. This deal will go well with our plan of adding class residential projects across India’s leading real estate markets.
Source: Times of India
Chennai, Godrej Group, Godrej Properties, Housing residential development project, LLP, Old Mahabalipuram Road, Padur, Pirojsha Godrej, Realty News, Siruseri IT Park, SSPDL
