BMC divided over plot deal for special hospital

The BMCs plan to set up a hospital for infectious diseases on a 21acre plot in Mulund is likely to come under the scanner for two reasons mdash firstly for buying land from private players despite having its own land bank and secondly for drafting land acquisition procedures such that the seller of the plot doesnt have to pay capital gains tax on the funds got from the deal BMC has refuted the allegationsWith COVID19 highlighting the citys inadequate health facilities the BMC shortlisted two plots to set up a 5000bed infectious diseases hospital to handle such situations in the future And the plot in Mulund was finalisedWhat about reserved landHowever the selection has not gone down well with many in the Shiv Senaruled municipal corporation A group of senior officials feel the BMC should have used plots reserved for hospitals under the development plan DP or explore setting up infrastructure on land available with the corporation or on vacant space in an existing big civic hospital Civic officials are also upset by the way the deal has been designedMumbai Mayor Kishori Pednekar vists 500bed quarantine facility NSCI Dome Worli With COVID19 highlighting the citys inadequate health facilities The BMC shortlisted two plots to set up a 5000bed infectious diseases hospital to handle such situations in the futureA midrank civic official on condition of anonymity said The plot in consideration is owned by private people and since it is in the process of being acquired under the Land Acquisition Act the purchasing cost would be much higher than ready reckoner RR rates It would cost the civic body hundreds of crores Instead of wasting tax payers money by benefitting an individual land owner the BMC can save money by considering alternate optionsLand may cost Rs 1500 crThe estimated cost for procurement of the Mulund plot is said to be over R1500 crore and is believed to be owned by people close to a highprofile minister in the Uddhav Thackerayled Maharashtra Vikas Aghadi governmentThe civic body plans to go ahead with the plan even though it has taken a hit during the pandemic The BMCs expenditure has risen by around R600 crore because of COVID19 relief measures and has even slashed R2500 crore from the funds allocated for important infra projects like Coastal Road and Gargai dam In fact so grim is the fiscal situation that the BMC has told all its departments to slash expenditure by at least 20 per centBMC refutes allegationsA BMC civic official in the know of the process said that the corporation did ask the development plan DP to give options from the plots reserved for hospitals for the 5000bed medical infrastructure But DP officials said no plot met the required criteria Hence the BMC started looking for the other option mdash buying a plot Accordingly the expression of interest EOI was invited in July a midrank BMC official told middayP Velrasu additional municipal commissioner projects said the proposed hospital will not only cater to Mumbai but all of Mumbai Metropolitan Region Asked about questions raised on the entire process the IAS officer said modalities are being worked out and refused to reveal any further informationBMC wont decide processMeanwhile another juniorrank BMC official who is aware of the process said since the title of the land is Class2 the government owns the land according to records the modalities of the entire deal will be based on instructions and procedures recommended by the state revenue departmentAs per prima facie information the title of the land is in the name of the state government Now the state revenue department will examine the records and revert and accordingly a decision will be taken on proceeding with the process and the deal BMC will not decide the process the official addedWhen asked about drafting the tender in a manner that the seller doesnt have to pay capital gains from the deal the official said Some portion of the land has reservation while others are freehold Since the plot has reservation the acquisition has to be done under the Monopolies and Restrictive Trade Practices MRTP ActBut not the entire land will be taken under the Acquisition Act Only a reserved portion will be acquired under the Act while the remaining portion will be bought through negotiationsThe midrank civic official said So far only the EOI has been invited and nothing has been finalised The deal is in a very nascent stage Going ahead several things might change as the proposal shapes up5kNo of beds the proposed hospital will haveKeep scrolling to read more newsCatch up on all the latest Mumbai news crime news current affairs and a complete guide from food to things to do and events across Mumbai Also download the new midday Android and iOS apps to get latest updates MidDay is now on Telegram Click here to join our channel middayinfomedialtd and stay updated with the latest news