Adani Group company takes over Rs. 5,000 crore project on RTO land
May 21, 2022
A jinxed Rs 5,000 crore slum rehabilitation project on RTO land in Andheri (west) has been taken over by an Adani Group company, Portsmount Buildcon.
The firm has taken a majority stake and will jointly develop the over 11 lakh sq ft sale component of the project with developer Shiv Infra Vision, which had bagged the work in 2018.
Residents of three slum pockets-Anna Nagar, Vitthal-Rakhumai and Kasam Nagar-measuring over six acres, had appointed Shiv Infra to rehabilitate them after allegations of irregularities and nepotism involving the then NCP PWD minister Chhagan Bhujbal derailed the project.
Adani Group company Portsmount Buildcon has paid developer Shiv Infra Vision Rs 444 crore and another Rs. 100 crore as a security deposit, says the joint development agreement for the slum rehabilitation project on RTO land in Andheri (west) accessed by TOI.
The company, whose registered address is Adani Corporate House in Ahmedabad, will be entitled to 76% of the revenue accruing from the project.
The deal with Shiv Infra was signed by Parag Adani, who spearheads Adani Realty, and Jackbastian Nazareth, MD of Adani Realty. Nazareth did not respond to calls and messages sent by TOI for a comment.
Bhujbal was accused of favouring a little-known developer, Chamankar, when it was handed the project without inviting tenders in 2005. The anti-corruption bureau (ACB) had charged Bhujbal and over a dozen others in what came to be known as the Maharashtra Sadan case. Chamankar was offered the development rights of the Andheri RTO slum project in lieu of constructing the Maharashtra Sadan building in Delhi, a state guest house in south Mumbai and the RTO office in Andheri.
However, a special court last year cleared Bhujbal and the developer. It said the evidence clearly indicated developer Ms K S Chamankar Enterprises had not committed any irregularity and no undue benefit was given to the developer.