NIT ‘wakes up’ to violations on its land after 6 years

Staff Reporter

Nagpur Improvement Trust (NIT), which had been allegedly turning a blind eye to the violations in the Transport Plaza project for the past six years, has suddenly woken up to the irregularities and has taken action against two businesses housed in the Plaza. NIT has terminated the contract of Regenta Central Hotel and Convention Centre, and issued show cause notice to Seven Star Hospital, both operating in the Plaza that is located at Jagnade Square. The Trust has also taken possession of 47.91% of the total area (4854.612 sq metres) of the hotel. The land was reserved for Transport Plaza. However, a hotel and a hospital were constructed on the land. It was almost 9 years ago that the project at Jagnade Square got approval. It came into existence in 2017. In these six years, NIT did not make any effort to identify the irregularities by the Plaza occupants.

According to sources, the hospital purchased parking space in the Plaza, and built its laboratories there. Surprisingly, NIT failed to notice this in the past six years. Similarly, after huge constructions of hospital and hotels came up in this space, NIT now says that the land was reserved for MSRTC Bus Stand in the Development Plan (DP) and should have been utilised solely for that purpose. It even goes on to call the deviation a “serious issue” and talks of conducting an inquiry into it. MLA Krishna Khopde has alleged an assumed ignorance by the authority in this matter. “The earlier Chairmen of NIT kept ignoring although I informed them about the developments from time to time. I am going to demand action against those chairmen. I will lodge a complaint with the Commissioner of Police, and, will even approach the High Court if required,” he said while talking to ‘The Hitavada’.

NIT had signed an agreement with M/s Lata Kisan Construction Private Limited to develop a Bus Terminal and ancillary facilities on Build, Finance, Operate, and Transfer (BFOT) basis on the land bearing Khasara No. 576, 324/1(P) Mouza at Jagnade Square, on an area admeasuring approximately 10,132.775 square metres in accordance with the terms and conditions set forth in the concession agreement. As per schedule-B of the agreement, wherein the scope of the project was elaborated, provides for operation and maintenance of bus terminal and ancillary facilities. An ancillary facility includes office area, shopping area, hospital, budged hotel, food court and restaurant area etc. No Objection Certificate for sub-lease in favour of M/s Latakisan Construction Pvt. Ltd was granted on January 23, 2015. Sub-lease in favour of Nagpur Institute of Surgical Science Pvt Ltd (for hospital) was executed by M/S Latakisan Construction Pvt Ltd on January 28, 2015 for 30.630% area of the total area. The NOC for sub-lease in favour of M/s Latakisan Infra Pvt Ltd for Hotel portion was granted on March 23, 2017, (for hotel) for 47.91% of total area of plot 4,854.612 square meters.

The Hospital raised some objections in the project for which NIT conducted a hearing. According to Hospital, Latakisan Infra acted against the terms of deed of declaration wherein the parking facilities of number of vehicles in favour of hospital was violated. The hospital had paid Rs 21 lakh to NIT as a ground rent. It also raised an issue of Latakisan Infra is storing and selling liquor and alcohol-based drinks, beverages and also allowing the guest in the hotel to consume tobacco, cigarettes. The applicant further pointed out that a pub under the name of ‘Deja Vu’ having several smoking rooms, distribute cigarettes and alcohol. There is a banquet hall where marriages and other functions are conducted causing traffic congestion. In its reply the Latakisan Infra refuted the charges. It said that, it is doing everything according to law. It pointed out that Hospital has built extra construction in the upper basement area.

The decision was made after it was discovered that the terms and conditions of the agreement were being violated by the hoteliers. It was found that the hotel was operating a pub called ‘Deja Vu,’ where liquor and cigarettes were being served. Additionally, the hotel was being used for weddings and other parties,causing inconvenience to the patients of the hospital located in the plaza. The Chairman of NIT Dr Manoj Kumar Suryavanshi found that MLAs Krishna Khopde and Vikas Thakre had filed a complaint alleging irregularities in the project. They both claimed that the land reserved for the ST bus stand in the Development Plan was used for commercial purspose without the permission of the Government and the Transport Commissioner. They also pointed out that the valuable land worth Rs 50 crore was alloted to the builder for only Rs 13 crore. As per regulations, construction was supposed to leave up to 16 meters of land from Nag river. In fact pillars have been constructed over Nag river. A loan of around Rs 50 crore was borrowed from four banks is due in respect of this property and the Concessionaire has sold out the property, Khopde and Thakre brought to the notice.

The Chairman in his note made it clear, “I have perused submissions of both the parties and relevant records of NIT. It is found that the applicant (Hospital) and M/s Latakisan Infra Pvt Ltd are Sub-lessee of M/s Latakisan Construction Pvt Ltd who is Concessionaire of NIT as per Concession Agreement. As per record of the Estate Department, the Concessionaire has made default in payment of ground rent and interest thereon for the period of 2022-23 for 69.370% area of total land. Amount of Rs 45,47,595 was due. NIT has the power to determine the lease and to re-enter premises. It would be in the interest of the project to terminate part of lease of area wherein banned activities are conducted. It will also be proper to issue show cause notice to the Hospital also.”