EWS project scam - The story so far

The story so far
Bengaluru








Article Rank










: The BBMP had constructed 1,512 flats (42 blocks of 36 flats each) during the period 1987-92 earmarked for the economically weaker sections of society (EWS) at Ejipura, on a site of approximately 15 acres.

The flats had developed serious defects and some of the buildings had completely collapsed. The BBMP proposed that these flats be demolished and some 1,640 flats be reconstructed by a competent party that is selected through a competitive bidding process.

For this purpose, the BBMP appointed Infrastructure Development Corporation (Karnataka) Ltd., (iDeCK) a Joint Venture between Government of Karnataka, Infrastructure Development Finance Co Ltd., (IDFC) and Housing Development Finance Corporation Ltd., (HDFC) as the consultants.

The scheme was to offer EWS land to the highest bidder as a joint venture to build the flats and use the additional vacant land for commercial purposes. BBMP would own half the space along with half the parking area. The developer would pay the BBMP a quarterly management fee for a 30-year lease period.

BMP notified expression of interest on October 15, 2004 and out of 21 responses, only three bids were finally accepted — Akruti Nirman Ltd., Maverik Holdings & Investments Pvt Ltd (the promoters of Garuda Mall) and IDEB Projects Pvt Ltd. After the technical and financial evaluation iDECK declared that Akruti Nirman was the winner as the highest bidder with its proposal of a quarterly management fee of Rs 1, 50,50,500 edging over Maverick which had coated 1,35,00,000. However, on 31 October, 2006, which was the last council meeting of BBMP, the Mayor recommended Maverick’s proposal and a resolution to this effect was passed.

Opposing the resolution, Akruthi Nirman, the bid winner approached the Karnataka High Court. A stay was granted on November 16, 2006 on a writ petition filed by Akruti Nirman Ltd. The petitioners had objected to the decision taken by the Mayor and the BBMP Council at the council meeting held on October 31, 2006 in connection with the EWS Rehabilitation project at Ejipura.

After the dissolution of the JD(S)-BJP coalition government, Akruthi Nirman which has links with the Congress, brought pressure through the Governor’s office to bag the project.

When the BJP came to power, Uday Garudachar, owner of Maverik Holdings & Investments Pvt Ltd, and a BJP leader stepped up attempts to bag the multicrore project.