Nagpur: NIT gave instalment facility to builders against norms for last three years

Nagpur

The Nagpur Improvement Trust (NIT) has been allowing payments in instalment for sanction of layouts and building plans over Rs 1 crore to developers and builders for last three years.

This is in violation of state government norms, and did not have the government’s okay. Now, three years after implementing it, NIT has proposed to seek approval of the government for giving instalment facility.

This discrepancy came to fore from the minutes of meeting of NIT board of trustees held on July 13. The board has approved the minutes in the meeting on October 4. Now, the process to send letter to the government is going on. TOI has copies of the minutes of the meeting.

The NIT board of trustees had in a meeting on September 4, 2018, taken a decision to allow instalments for paying land development fund recovered for approval to layout and building construction charges recovered for approval of building plan of over Rs1 crore. As per the Maharashtra Regional and Town Planning (MRTP) Act, NIT is supposed to recover charges within 30 days of issuance of demand note. The decision was taken to allow payment of 25% amount within 30 days followed by next payment within six months at 18% rate of interest, and within a year at 24% rate of interest.

Accordingly, NIT implemented and allowed instalments to many developers and builders.

On July 13, NIT administration proposed to reduce interest from 24% to 18% and make payments easier for developers and builders. Proposal was to allow second instalment at 18% interest within a year, third instalment within two years, and fourth instalment within three years at the same interest.

As per minutes, Municipal Commissioner Radhakrishnan B pointed out there were no provisions in MRTP Act to give instalment. He said NIT will need to take permission of the government if it wants to allow instalments. Accordingly, a decision was taken to seek the government’s permission.

It was also decided to stop the instalments for new applications, but continue them for those who have already availed the benefit.

NIT Chairman Manoj Kumar Suryawanshi told TOI, “We will seek the government’s approval and implement the system. NIT gave instalments for last three years as per decision of the board. And NIT earned more revenue as instalments were recovered with interest. Therefore, NIT did not incur any financial loss.” 

Activist Anil Wadpalliwar said, “NIT has been taking many decisions in violation of norms only to benefit developers and builders for years now. The system of instalment should have been provided to people constructing small residential buildings. Demand of over Rs1 crore is generated only for layouts and flats or commercial buildings. The NIT is giving one to three years for payment to developers and builders so they can sell off plots and flats, earn and then pay NIT. It means NIT is saving their money. Government should taken action.” 

Wadpalliwar added NIT never follows rules. “I had exposed various irregularities of NIT. Also, auditors did the same. Even committee formed by the high court confirmed series of irregularities. Still, NIT continued to work to favour developers and builders and not common man,” he said.

Anjaya Anparthi, TNN, Nagpur

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