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National Textile Corp fined Rs 1.4 bn over use of govt land sans permission

In the 90s, when the mill redevelopment began, the lands were divided into three parts, The fine slapped pertains to the plot handed over to the MHADA

Press Trust of India  |  Mumbai 

Sewn up: Employees sew clothes at the Estee garment factory in Tirupur, in  Tamil Nadu. Relatively high labour cost is costing the textile town its competitive advantage. Photo: Reuters
Representative Image

The Mumbai district collector's (city) office has levied a fine of Rs 1.4 billion on the National Corporation (NTC) in connection with the redevelopment of a mill land in Byculla here sans requisite permissions, payment of lease rent and redevelopment charges.

District Collector Shivaji Jondhale confirmed the development and said a communication to this effect was sent to the NTC on July 3.

According to the official, the corporation had seven mills in Mumbai.

In the 90s, when the mill redevelopment began, the lands were divided into three parts - two of which went to the Brihanmumbai Municipal Corporation (BMC) for development of garden and to the Maharashtra Housing and Area Development Authority (MHADA) for constructing a residential building meant for mill workers.

The remaining part was sold to a private developer.

The fine slapped pertains to the plot handed over to the MHADA.

"The government land they (NTC) had given to MHADA was a leased one (New Kaiser Mills plot, admeasuring over 30,000 sq m). But it handed over the land to MHADA after the lease expired. It was a government land. So, it means that they handed over the government land to the government itself," Jondhale said.

"They have not paid the lease rent and redevelopment charges. They should have sought redevelopment permission from the Maharashtra government," he added.

First Published: Fri, July 05 2019. 14:30 IST
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