MIAL terminates contract to shift airport slums

May 30 2013, 03:03 IST
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SummaryAccuses developer HDIL of non-performance.

Mumbai International Airport Limited (MIAL) has terminated a contract it awarded to Housing Development and Infrastructure Limited (HDIL) nearly six years ago to shift slums on Chhatrapati Shivaji International Airport (CSIA) land and resettle dwellers.

Constrained for space, with its 276 acres encroached on, the GVK-led MIAL had asked HDIL to initially relocate over 80,000 families.

An MIAL spokesperson said the agreement was terminated due to non-performance by HDIL.

“In February 2013, MIAL terminated the said agreement. Prior to termination, it invoked performance securities,” he said.

Mumbai-based developer HDIL refuted the charge that it failed to maintain timelines.

“We have been advised by our counsel such a notice of termination is not tenable in a court of law and we have initiated legal remedies available to us,” said Rakesh Kumar Wadhawan, executive chairman of HDIL.

MIAL had entered into the agreement in October 2007 and HDIL had to complete the rehabilitation by end of 2011.

“However, HDIL continuously failed to perform and MIAL issued a cure notice in June 2011.”

Meanwhile, a senior official from MMRDA, the coordindating authority for the project, said, “The contract was between MIAL and HDIL, we did not have any role. About 8,000 tenements have been handed over but no family has been shifted, pending a decision on eligibility. About 600 families were rehabilitated for construction of Sahar Elevated Road.”

Hariprakash Pandey, vice-president (finance) HDIL, said, “We have met all obligations in terms of delivering apartments to slum dwellers. We have already handed over 1,000 apartments through MMRDA to MIAL for Sahar Elevated Road. Additional 7,000 apartments are pending transfer for the past two years as the state government is yet to clarify the eligibility criterion for slum dwellers.”

A company gets transfer of development rights (TDR) in lieu of rehabilitation and redevelopment of slums, which it can use for development or sell in the market.

“Around 27,000 apartments are under construction for which all approvals and TDR have been obtained. We will continue to use that,” Pandey said.

HDIL got TDR for 1-1.2 million square feet for completing phase 1 of the rehabilitation work. It was expecting TDR for 30-40 million square feet from the project.


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