Rajasthan Agriculture Minister Kirodi Lal Meena has written to Chief Minister Bhajan Lal Sharma alleging that a multi-storey housing project in Gandhinagar may result in the loss of Rs 1,146 crore to the government exchequer, reported NDTV on Friday.
The project involves the redevelopment of the old MREC campus. Several senior government officials currently live in the area.
The General Administration Department, which is under the chief minister, has sanctioned a plan to construct six multi-storey buildings at the location, according to The Indian Express. While four of the buildings would be used for government housing, two will be sold to private players as part of a public-private partnership.
In a letter written to the chief minister on May 14, Meena alleged that the General Administration Department was going ahead with the plan without the Cabinet’s approval. He said notices for eviction of government houses in the campus have already been issued.
“Under the master plan, there is no provision of 18-19 storey buildings here,” wrote the minister. “Commercial use is also not allowed here as per rules. However, illegal means have been used to make this project happen.”
He pointed out that a new assessment has valued the area in the Old MREC campus at Rs 218 crore while its value five years ago was Rs 277 crore. Meena also claimed that the reserve price, a minimum price fixed by a financial institution, is also undervalued at Rs 8,000 per square foot against the current rate of Rs 25,000.
The minister wrote that this would result in nearly Rs 17,000 per square foot loss. As the government intends to sell nearly 33% of the flats to private players, the losses would add up to Rs 1,146 crore, he said.
“Some officers/people are going to make black money worth crores of rupees by colluding with REDCC [Real Estate Development and Construction Corporation of Rajasthan Limited],” wrote Meena. “It is necessary to pay timely attention to ensure that the government does not lose about Rs 1,146 crore.”
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