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ED attaches assets worth Rs 462 crore in SRA Fraud Case
This is the first attachment in this case.
Enforcement Directorate attaches assets worth 462 crore in the form of 33 flats of M/s Pyramid Developers in Bandra West in Mumbai under PMLA in a case related to using fake documents for fraudulent availment of extra FSI under SRA Scheme.
An ECIR was recorded on 31.03.2017 on the basis of FIR dated 10.03.2014 registered in the Bandra Police Station, Mumbai, Maharashtra against Shri Baba Siddique and others. The FIR reveals that the suspect persons have defrauded the State by preparing false ration cards, photo passes, shop and establishment licences and submitted the same to the SRA with an intention to get approval from SRA for redevelopment scheme of Jamat-E-Jamhooria CHS Ltd situated at CTS No 791 (A), K.C.Marg, Bandra (West), Mumbai- 400 050.The said bogus documents were also used to get extra Floor Space Index (FSI) for wrongful gains.
M/s Pyramid Developers were appointed as the Developers and M/s Neo Modern Architects as the Architect for the redevelopment by the Jamat-E-Jamhooria CHS Ltd. The developer had undertaken the redevelopment of the said Slum Redevelopment Scheme by submitting the proposal before the Slum Rehabilitation Authority (SRA) The SRA issued the Letter of Intention (LOI) dated 04.12.2003 sanctioning FSI of 1.875 for the said slum redevelopment scheme. In compliance with the SRA’s directives the Developers approached the MOEF for clearance of the project from CRZ perspective. The MOEF accorded clearance under CRZ Notification 1991 on the condition that FSI to be used for the project shall not exceed the FSI as existed on 19.02.1991. Amendments were made by SRA vide LOI dated 14.11.2007 and 07.05.2010.
The investigations revealed that number of violations have been committed in the construction of the building by allowing exemptions which are not available to the said project by virtue of it being in the CRZ-II and in effect consuming FSI in excess of permissible limit i.e 1.5 in aggregate. The enhancement of FSI from 1.5 to 1.875 was only for in situ rehabilitation of slum dwellers and not applicable on developer sale component. The officials of MHADA, the Land Owning authority confirmed that they have given NOC for construction in area admeasuring 16742.00 Sq mts whereas construction was undertaken by showing the plot area as 18662.70 Sq Mts.
Thus the developer has procured Sale BUA of 18094.55 Sq. Meters in their LoI against the actual eligible BUA of 2283.5615 Sq. Mtrs. The Developer has constructed 81 flats in the sale building. The total carpet area of all the flats is admeasuring 18296.10 Sq. Mtrs. The said 81 flats were divided equally between M/s Pyramid Developers and M/s Satra Buildcon Pvt. Ltd. From the above it is observed that the carpet area of 16012.54 Sq. Mtrs has been constructed in excess. The average sale value of each flat in the Sale Building is approximately 14 Crores. Out of their shares, M/s Pyramid Developers are yet to sell 33 flats. The aggregate value of these 33 flats is Rs. 462.00 Crores. The same have been provisionally attached . This is the first attachment in this case.
Further investigation is in progress.