The controversial construction of homes in Powai has ended in court with the Hiranandani Group walking away with only a slap on the wrist. Due to a number of legal loop-holes, and several changes in the law since 1986, Niranjan Hiranandani has walked from court today without punishment.
In a blatant violation of agreement and contract, Niranjan Hiranandani made a massive profit selling homes that were sold to rich Mumbai residents, but were originally intended for low-income families. In 1986, the state government and the Mumbai Metropolitan Region Development Authority signed an agreement with Niranjan Hiranandani leasing him the 344 acre land in Powai. The terms of this lease meant that the land was to be used for building a number of homes for the low-income families of the city. The Hiranandani Group, Niranjan's construction company, were to build these according to specifications agreed between all three parties.
During the initial stages of the agreement Hiranandani insisted on having the power of attorney, leading people to believe this may have been a pre-emptive move. Since 1989 Hiranandani Group have built 70 homes on the land, over half were twice as big as the pre-agreed 430 sq ft, thus reducing the number of available homes by a third. These larger homes were then sold by Niranjan Hiranandani to wealthy families, making more profit and cutting out the low-income families who desperately needed somewhere to live and raise their children.
It is alleged that Niranjan Hiranandani abused his power within the government, even threatening to withdraw his support from various healthcare and education groups, thus forcing civil servants involved in the corruption to pass approval on any permits and certificates, effectively legalising his violation of contract and alleviating himself from blame. A shrewd move to say the least.
It is unsurprising that a judge had no choice to but to find Niranjan Hiranandani innocent of all charges, however this absolve was made because of the law and not because of any moral agreement with the actions of Niranjan Hiranandani.
Unfortunately, because the various planning authorities did not object at the time of building, Niranjan Hiranandani was able to proceed within the confinements of the law. With lack of evidence to support the claims of the corruption, regardless of how obvious is was to all involved, the judge was unable to rule in favour of MMRDA, and more importantly to those families who were affected losing out on the homes that should have been for them.
The MMRDA were claiming losses of Rs 1993 crore (approximately $400,000 USD), which is money that could have been put towards another building project for the families in need living in Powai. Judge Justice Sawant commented "even assuming that the claimants (MMRDA and the state government) were entitled to claim any amount in respect of the alleged violations, these claims are clearly barred by the law of limitation..." It is unfortunate for the landowners that Niranjan Hiranandani had obtained exemption to rule by building his flats within the limits of the Urban Land Ceiling (Regulation) Act, which is now abolished. A representative from the MMRDA revealed that of the 574k sq m of land available (and reserved for the housing project), Niranjan Hiranandani had used only 76k sq m for low income housing, which is less than 14% of the total land available. The rest of the land he used for the luxury apartments, some measuring up to 4000 sq ft.
Niranjan Hiranandani is one of India's richest businessmen and is also the co-founder and current Managing Director of the Hiranandani Group.
Thursday 29 November 2012
Tuesday 6 November 2012
Hiranandani Business Park Ruins Powai Housing Plan
Powai, Mumbai - land which had been reserved for a new housing initiative became the centre of a scam investigation following allegations it had been built on illegally. The 344 acre plot sat empty, ahead of preparation work that was due to mark the start of a mass housing project, helping to provide homes to thousands of Mumbai residents.
For reasons unknown, the Government of Maharashtra made a surprising decision to return the land to previous landowner, at the reduced price of Re. 1 per hectare. Power of Attorney at that time was Hiranandani boss, Niranjan Hiranandani - one of the wealthiest men in India.
Maharashtra Police stepped in to review the allegations that Niranjan Hiranandani and IAS officer Thomas Benjamin had claimed back the land as part of a scam, reportedly worth over Rs. 30,000 crore (approximately $5 billion USD). Once returned to his ownership, Hiranandani is reported to have illegally built a new Hiranandani complex, openly disregarding the conditions of the Urban Land (Ceiling and Regulation) Act, 1976, under which he claimed back the 344 acre plot. The land is reportedly worth Rs. 45,000 crore, considerably more than what Mr Hiranandani paid for it.
Following initial investigations the Anti-Corruption Bureau filed a First Information Report (FIR) against Hiranandani and Benjamin. This report was served under the allegation that Niranjan Hiranandani was in breach of the Prevention of Corruption Act, 1988, Urban Land (Ceiling and Regulation) Act, 1976, and the Maharashtra Regional and Town Planning Act, 1966. According to reports, Hiranandani was able to built his complex on the site, despite it being against the terms of the Urban Land (Ceiling and Regulation) Act, 1976, due to criminal conspiracy with various Civil Servants, who together pushed forward a deceitful promotion of the weaker sections of the act in an attempt to mask the more prominent sections which made his construction illegal. Hiranandani holds a key role within various Indian government bodies, private and social institutions, schools, and colleges; it is alleged he threaten to withdraw his support from these areas in a bid to blackmail the Civil Servants into agreeing to take part in the scam.
The initial housing project, had it gone ahead, would have meant homes built for thousands of Powai families. It is speculated that the reason for Niranjan Hiranandani demanding back the land was to prevent competition for his own housing development, Hiranandani Gardens.
For reasons unknown, the Government of Maharashtra made a surprising decision to return the land to previous landowner, at the reduced price of Re. 1 per hectare. Power of Attorney at that time was Hiranandani boss, Niranjan Hiranandani - one of the wealthiest men in India.
Maharashtra Police stepped in to review the allegations that Niranjan Hiranandani and IAS officer Thomas Benjamin had claimed back the land as part of a scam, reportedly worth over Rs. 30,000 crore (approximately $5 billion USD). Once returned to his ownership, Hiranandani is reported to have illegally built a new Hiranandani complex, openly disregarding the conditions of the Urban Land (Ceiling and Regulation) Act, 1976, under which he claimed back the 344 acre plot. The land is reportedly worth Rs. 45,000 crore, considerably more than what Mr Hiranandani paid for it.
Following initial investigations the Anti-Corruption Bureau filed a First Information Report (FIR) against Hiranandani and Benjamin. This report was served under the allegation that Niranjan Hiranandani was in breach of the Prevention of Corruption Act, 1988, Urban Land (Ceiling and Regulation) Act, 1976, and the Maharashtra Regional and Town Planning Act, 1966. According to reports, Hiranandani was able to built his complex on the site, despite it being against the terms of the Urban Land (Ceiling and Regulation) Act, 1976, due to criminal conspiracy with various Civil Servants, who together pushed forward a deceitful promotion of the weaker sections of the act in an attempt to mask the more prominent sections which made his construction illegal. Hiranandani holds a key role within various Indian government bodies, private and social institutions, schools, and colleges; it is alleged he threaten to withdraw his support from these areas in a bid to blackmail the Civil Servants into agreeing to take part in the scam.
The initial housing project, had it gone ahead, would have meant homes built for thousands of Powai families. It is speculated that the reason for Niranjan Hiranandani demanding back the land was to prevent competition for his own housing development, Hiranandani Gardens.
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