Mumbai’s Construction Industry worst affected by Corruption
The common man may think he is the most vulnerable in the corruption chain. But Mumbai’s construction industry-although one of the most powerful and influential lobbies around-is one of the worst affected by the cancer. The city’s builders are not exactly pillars of rectitude, but even those among them who do not deviate from rules and have clean projects cannot escape the vice-like grip of unscrupulous officers in the Brihanmumbai Municipal Corporation (BMC), Slum Rehabilitation Authority (SRA) and revenue department.
Builders who spoke to TOI on condition of anonymity admitted that without some heavy palm-greasing, files will not move and clearances will not come through. Over the last couple of years, levels of governmental corruption in the state have risen so sharply that even the builder is now tired. “The project may be within the law, yet one has to fight till the end to get approvals,” said a low-profile developer. For instance, a small ground-plus seven-storey project in a suburb like Chembur will cost the developer a few lakhs in bribes even though the builder may not ask for too many concessions.
“Officials will ask for irrelevant details and make you run around if their demands are not met,” he said. In the BMC, a builder must procure no-objection certificates from as many as 32 departments. “Each signature in a crucial department like building proposals could cost between Rs 50,000 to Rs 1 lakh for a proposal which does not require any deviations,” he said. This builder said he lost out on many redevelopment projects because he refused to promise extraordinary sops to flat owners.
A veteran architect who goes strictly by the book, said, “We pay a nominal amount. It’s a way of life. Otherwise, the project could get held up for six months or more.” He added that procuring building sanctions are easier in the eastern suburbs than in the western belt.
Another leading city builder said the pay offs for a 20-storey building in the western suburbs could run into a couple of crores. “One has to pay at each step, from initial permissions like intimation of approval (IOD) and commencement certificate, and more in case an amended plan is to be submitted. Finally, the occupation certificate for the building also carries a huge price,” he said. Developers complain that major problems they face are in the BMC’s building proposal and development plan departments, fire brigade, stormwater drains and in procuring the traffic department’s NOC.
According to an estimate, the BMC received 400 building proposals a month. “The quantum of payoffs in Mumbai could be a minimum Rs 2,500 crore annually,” said construction industry sources. Payments could range from Rs 100-200 per sq ft. A developer said these costs are ultimately passed on to the buyer.
BMC Mumbai, Brihanmumbai Municipal Corporation, Chembur Mumbai, Corruption, Developer, Intimation of approval, Mumbai, Mumbai's Construction Industry, No-objection certificates, Revenue department, Slum Rehabilitation Authority, SRA
