Credit Notes Of ₹416cr Issued To 3 Cos In Lieu Of Pap Projects, ET RealEstate
MUMBAI: The BMC has issued Rs 416 crore worth of credit notes to three companies that bagged civic contracts to purchase land and construct flats under the Project Affected People (PAP) scheme in exchange of credit notes and TDR.
These companies sold these credit notes to many builders, including prominent groups, who used it to pay their pending dues to BMC in tranches of a few lakhs and crores.
In May, TOI had reported that BMC issued credit notes to the companies under PAP scheme though no work had started on the sites selected for the building constructions.
BJP leader Kirit Somaiya through RTI obtained details of credit notes issued by the BMC to the three companies and the builders who had used these credit notes to settle their pending dues with the BMC. Somaiya said, “As soon as BMC credit notes were issued to three companies, many builders purchased it from the companies and used it to settle their dues to the BMC.
“Why do builders need to buy credit notes from the three companies to pay BMC? I have written to the state chief secretary for a probe,” he said.
Of the Rs 416 crore worth credit notes issued, Rs 268 crore were issued to Swas Construction Co which won the Mulund PAP project, Rs 110 to New World Landmark LLP for the Bhandup PAP project and Rs 38 crore to Classic Promoters & Builders Pvt Ltd for the Prabhadevi PAP project.
The credit notes’ worthiness is equal to the market value of the plot at the time of signing the agreement. The owner of credit notes can use them only for paying the BMC for construction-related charges.
