Three construction firms, Adani, L&T and Naman Developers, have submitted bids to redevelop Mumbai’s largest housing project, Motilal Nagar in Goregaon (west), worth Rs 35,000 crore.
Last Sunday, TOI had reported that many builders have complained that the tender floated by the state housing authority, Mhada, has been rigged and tailor-made to benefit a select few developers.
“The three bids received will be scrutinised over the next few days and a decision will be taken soon,” said Yogesh Mhase, chief of Mhada’s Mumbai board.
Two top developers, Godrej Properties and Bengaluru-based Prestige Group, formally protested and wrote to Mhada about a controversial clause in the tender which makes most builders ineligible for the huge contract. The clause says only developers with a net worth of not less than Rs 9,000 crore as on March 31, 2021, can qualify.
Monday was the last day to submit bids for the project spread over 143 acres, comprising Motilal Nagar I, II and III.
Mantralaya sources claimed that the builders who have objected did not raise the issue during the pre-bid meeting. They questioned why the letters were written just days before the bids deadline.
These sources also said the clause in the tender was mandatory as Mhada was only following Central Vigilance Commission guidelines. According to them, the guidelines mandate that the bidder’s net worth must be at least 30% of the project cost.
Godrej Properties, one of the country’s largest developers, alleged in a letter to Mhada that the qualifying parameter of Rs 9,000 crore is “discriminatory” and eliminates other bidders, including Godrej. “It will also act as an undue advantage to a handful of entities who may not even have the requisite on-ground experience to provide housing, accommodation or rehabilitation,” said the letter.
Motilal Nagar was built in the 1960s as a rehabilitation and resettlement colony for citizens displaced from different locations in the city and suburbs. Then PM Jawaharlal Nehru had laid the foundation stone of this resettlement colony.
The Mhada tender has been floated under the public-private partnership model to rehabilitate about 3,717 Mhada tenants and 1,600 slum dwellers. The master plan envisages integrated redevelopment, including rehabilitation buildings for existing eligible residential and commercial users, as well as shopping centres, offices, recreational centres, schools, healthcare centres and apartments of various sizes for sale. The winning contractor will receive a floor space index (FSI) of 4 to redevelop Motilal Nagar.