MADC 2011- Nothing wrong in leasing Mihan-SEZ properties to outsiders: MADC
Amid controversy over the lease of residential apartments built by Reatox Builders and Developers within the Mihan-SEZ area to those not connected with the SEZ's activities, Maharashtra Airport Development Company (MADC) has clarified that there was no restriction in this regard.
In its recent reply to the Development Commissioner of Mihan, MADC's vice-chairman-cum-managing director UPS Madan has said that as far as the sale or lease of these properties to outsiders is concerned, it does not see any violation of SEZ rules or conditions laid down by the Board of Approval (BOA), set up by the Ministry of Commerce. MADC is the developer of the Mihan-SEZ.
Madan said that neither the SEZ Act 2005 nor the rules framed in 2006, impose any prohibitive condition on leasing of dwelling units to general public or those outside the SEZ. "There is nothing in the act to suggest that such prohibition is necessarily and inextricably implied, especially in a residential structure. It was only when the guidelines of development of special economic zones were issued in October 2010, that the issue of not allowing sale or lease to any person not connected to a SEZ was raised," said the letter.
Madan said that imposition of the 2010 guidelines on a project started much earlier would be unfair.
The MADC tender document for constructing the dwelling units also does not mention that the township was intended to be included in the proposed SEZ plan. None of the agreements had any condition not to sell or lease these tenements constructed by Reatox to any outsider, he said.
Reatox had placed all such agreements before BOA while seeking a go-ahead for its project. The BOA too granted an approval in a meeting held on December 22, 2008, with which it can be assumed that it had no objection on leasing the residential units to persons not connected to SEZ.
The letter stresses that the Mihan-SEZ was notified on May 29, 2007 and the possession of the land was given to Reatox prior to it. Since all terms and conditions of the documents were placed in front of the BOA before the notification, it may not be appropriate for MADC to restrain the company from leasing the residential units to outsiders at this stage.
Amid controversy over the lease of residential apartments built by Reatox Builders and Developers within the Mihan-SEZ area to those not connected with the SEZ's activities, Maharashtra Airport Development Company (MADC) has clarified that there was no restriction in this regard.
In its recent reply to the Development Commissioner of Mihan, MADC's vice-chairman-cum-managing director UPS Madan has said that as far as the sale or lease of these properties to outsiders is concerned, it does not see any violation of SEZ rules or conditions laid down by the Board of Approval (BOA), set up by the Ministry of Commerce. MADC is the developer of the Mihan-SEZ.
Madan said that neither the SEZ Act 2005 nor the rules framed in 2006, impose any prohibitive condition on leasing of dwelling units to general public or those outside the SEZ. "There is nothing in the act to suggest that such prohibition is necessarily and inextricably implied, especially in a residential structure. It was only when the guidelines of development of special economic zones were issued in October 2010, that the issue of not allowing sale or lease to any person not connected to a SEZ was raised," said the letter.
Madan said that imposition of the 2010 guidelines on a project started much earlier would be unfair.
The MADC tender document for constructing the dwelling units also does not mention that the township was intended to be included in the proposed SEZ plan. None of the agreements had any condition not to sell or lease these tenements constructed by Reatox to any outsider, he said.
Reatox had placed all such agreements before BOA while seeking a go-ahead for its project. The BOA too granted an approval in a meeting held on December 22, 2008, with which it can be assumed that it had no objection on leasing the residential units to persons not connected to SEZ.
The letter stresses that the Mihan-SEZ was notified on May 29, 2007 and the possession of the land was given to Reatox prior to it. Since all terms and conditions of the documents were placed in front of the BOA before the notification, it may not be appropriate for MADC to restrain the company from leasing the residential units to outsiders at this stage.
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