NMC failed to construct malls on market land, scraps contract

Source: The Hitavada      Date: 13 Sep 2017 10:12:06


Staff Reporter,

Atlast, Nagpur Municipal Corporation (NMC) has scrapped agreements of four shopping mall complexes in the city. These agreements were signed between 2007 and 2008. Standing Committee Chief Sandeep Jadhav said that Estate Department had failed to provide alternate shops to shopkeepers of three shopping complexes while land of one shopping complex was given for Nagpur Metro.

NMC had floated contracts for construction of commercial complexes on build-operate-transfer basis. These included contracts with Shopping Mall and Hotel Pvt Ltd for complex in Netaji Market, Sitabuldi; S B Concept Hotel Malls Pvt Ltd for complex on land of Water Works Department Office, Sitabuldi;
G P Concept Hotel and Malls Pvt Ltd for complex in Gokulpeth Market, and P P Shoppers Mall and Hotel Pvt Ltd for the complex in Panchpaoli Market. In case of Water Works Department office in Sitabuldi, the land is on the alignment of Nagpur Metro Railway project. Jadhav alleged that the subject was related with the Market Department but administration did not take department into confidence.

NMC obtained legal opinion over refund of their earnest money deposits and premiums paid. After receiving legal opinion, NMC has decided to refund the earnest money deposits totaling Rs 2 crore (Rs 50 lakh for each project) and one-time premiums of total Rs 8 crore to the contractors concerned, Jadhav added.