Public will lose 500 Crores on CRAWFORD MARKET 'DEVELOPMENT!
8th April 2006
from "shailesh Gandhi" <shailesh2@vsnl.com>


shailesh gandhi
B2 Gokul Apartment, Near Asha Parekh Hospital,Poddar Road, Santacruz (W),Mumbai-400054 ,
Mob: 98200 27305, Tel: 26001003, 32903776, Email: shailesh2@vsnl.com

       Public will lose 500 Crores on CRAWFORD MARKET 'DEVELOPMENT!

     I read about the development and privatization of the Crawford Market in the papers, and decided to investigate this transaction. The information given under Right To Information from the Market department of Mumbai Corporation of Greater Mumbai  makes horrifying reading.. I have obtained copies of the proposal using RTI..

     Using Right To Information I have obtained a complex web of bureaucratese which refers to a number of interlinked resolutions which aim to fulfil the objective of impoverishing the City. I give below the financial implications of the proposal. All the figures have been taken from the proposal obtained from the Market Department of MCGM. I have made only two assumptions:

1.      The cost of construction would be Rs. 25000 per sq. mtr (about Rs.2336 per sq.ft-which is high).

2.      The price per sq. mtr. of the commercial premises would be Rs. 200000 per sq. mtr.     (Rs.18691 per sq.ft.). When I calculate the financial implications of this, it means the Public,- the owner of the land,- gets free construction cost of Rs. 66 crores and allows the tenants and developer to gain nearly Rs. 500 crores!   The calculations are given in the attached sheet. The owner of the land- the Public- is looted Publicly.                                                           

      The Government bodies appointed by us are in a hurry to dispossess all that belongs to the Public, so that Privatisation can be hurried. With such policies, is there any wonder that we are poor!.

My views on what should be done

1.      There are enough private developers of Markets, and the MCGM should desist from developing Markets. In this case, I do not believe anybody has analysed the impact on the traffic and amenities when 6205 sq.mtrs. becomes 65689 sq. mtrs! We are creating a nightmare.

2.      If there are strong reasons for this development, which I am not able to comprehend and the infrastructure solutions exist, at the very least the public should get around 500 crores. A similar fate as this is to be repeated across 102 Municipal markets in Mumbai- perhaps a ripoff of a few thousands of crores.

 Surprisingly, the main debate on this issue in the Maharashtra assembly, Mumbai Municipal Corporation and the Media is around:

i)        The question of whether all the tenants are getting a good deal. Perhaps some sections have not got their 'fair' share of the loot.

ii)      The biggest issue now is the news that Dawood Ebrahim is behind the deal. The way in which the matter is being misrepresented, the Public will be happy when it is assured that Dawood is not benefiting.

     The key issue that 500 crores are being stolen before the Public eye, is not being addressed by anyone! The Public can still stop this.

    

shailesh gandhi
                                                                           
 
        
PUBLIC LOSS OF AROUND 500 CRORES!

Calculations of the financial loss to Public.

The proposal for the redevelopment of Crawford Market

All data given by Asst. Commissioner Markets under Right To Information.

Area of plot                                                     22471.75  sq. mt.

Area occupied by tenants/licencees                  6205.98    sq.mtr.

Heritage Building                                             5515.00   sq. mtr. - it appears this will left as it is

Total New area to be built                               65689.77   sq. mtr. - more than 10 times 6205.98

Constructed Area to be given to MCGM        26494.93     sq. mtr.

Constructed Area for tenants and developer    39194.84    sq. mtr.

 

Land belongs to Public through MCGM

 

I am assuming

1. A construction cost of Rs. 25000 per sq.mtr.(Rs. 2336 per sq. ft.- which is high)

2. A sale price of commercial as Rs. 200000 per sq.mtr. (Rs.18691 per sq.ft.-conservative)

 Then

The total construction cost will be     65689.77x25000=   164,22,44,250   ie.         164 crores.

 MCGM gets free construction  26494.93x 25000=    66,23,73,250    ie.                   66 crores 

Tenants and Developer get  value of  39194.84x 200000= 783,89,68,000   ie.         783 crores

Tenants and Developer together get     783-66=                                                        619 crores.

                                

Even if deduct the value of the tenant's

current holding at full value                 6205.98x 200000=124,11,96,000             ie.   124 crores

 

The Landlords-People get a free construction of just                         Rs.  66 crores                                                 

And Tenants and Developer make            619-124=                         Rs. 495 crores

 THE PUBLIC LOSES AROUND 500 CRORES.

I have approached Corporators, who agree with all this, but do not wish to oppose the deal on valid grounds. The media appears to find the idea of the Dawood-link a good sensation, and is also unwilling to highlight the 500 crore loss.

Will the Citizens now stand up?

 shailesh gandhi



 
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