NMC faces loss as cos’ plan user change of plots in Empress Van

Nagpur: Adding fuel to a controversy, two private companies are trying to change user of its industrial plots in Empress Van under section 37 of the Maharashtra Regional and Town Planning (MRTP) Act under provisions that would require them to pay lesser amount of premium.
If this happens, the cash-strapped Nagpur Municipal Corporation (NMC) will incur financial loss like what had happened in other cases in the past.
Controversy had erupted couple of years ago after NMC proposed to construct road from Empress Van by felling 380 trees. Maharashtra State Textile Corporation (MSTC) is supposed to construct the road as it owns the industrial layout in Empress Van.
Even as funds yet to be received from MSTC, NMC has started road construction after issuing tender and appointing a private contractor. Trees have been cut down followed by execution of works like laying storm water drain, levelling the land for road etc.
Activists including advocate Ankita Shah had alleged the civic body was doing this to benefit three companies that have purchased sprawling plots in the layout.
A couple of years ago, Royal Sandesh Business Park LLP, Orange City Garment Park and Acharya Shree Vidyasagar Garment Vyapari Welfare Society had purchased plot nos 1, 2 and 8, respectively, from MSTC.
The companies have proposed commercial projects on the plots whose user is industrial. It requires change of user from industrial to commercial.
Last year, Royal Sandesh Business Park LLP and Orange City Garment Park had submitted an application with urban development minister Eknath Shinde seeking user charge under section 37 of the MRTP Act.
Under this provision, companies will have to pay 5% of ready reckoner value of the plots. The state government and NMC will get share of 50% each.
The urban development department (UDD) directed the NMC to submit details. NMC said user change under section 37 of MRTP Act cannot be permitted but there is provision of change in user from industrial to commercial under clause 10.3.3 of Development Control and Promotion Regulations (DCPR) under which 20% premium is required to be paid.
NMC is yet to receive reply on this.
It has come to fore that the two companies recently sent letters to MSTC and forwarded copy to mayor Dayashankar Tiwari seeking user change under section 37 of MRTP Act recently.
Confirming this, director in Royal Sandesh Business Park LLP, Ramdeo ‘Rammu’ Agrawal, told TOI that some traders have come together and procured the plots. “We proposed the project to ease congestion in Itwari, Gandhibagh and adjoining areas. It is in larger interest of the public and city. We are seeking user change under section 37 of MRTP Act which is well within the law and permissible. We will have to follow whatever decision is taken by government and NMC,” he said.
There are trees on two of the three plots. The area too has more trees that are under threat due to development of commercial complexes.