mumbai cricket association(mca) exposed

Mumbai Cricket Association

(Managed and Controlled by

Sharad Pawar)Sharad Pawar)

Project at Bandra Kurla Complex

Brief Summary

1. Shri Sharad Pawar writes letter to late Shri

Vilasrao Deshmukh on February 2, 2001 seeking

allotment of plot for MCA free of cost.

2. Late Shri Vilasrao Deshmukh writes to Shri Sharad

Pawar that he is instructing the Principal SecretaryPawar that he is instructing the Principal Secretary

(Urban Development Department) to look into the

matter.

Brief Summary

3. In the letter of MCA, it states that the MCA is a

Public Charitable trust with the sole objective of

promoting and controlling the game of cricket in

Mumbai. Example of Karnataka and Tamil Nadu

Governments who have allotted plots of land at

very nominal rates are quoted. The letter it alsovery nominal rates are quoted. The letter it also

states that the project is for an ACADEMIC purpose

and is not a SELF SUPORTING ONE.

Brief Summary4. MCA then got allotted 52,157 sq mtrs plot of land

at BKC for construction of cricket club on May 17,

2001 .

5. The plot was allotted to MCA at throw away rates

for a lease period of 80 years. MMRDA has not

invited competitive bids while allotting the plot toinvited competitive bids while allotting the plot to

MCA. MMRDA has bent several rules so as to

favor MCA.

6. In the letter dated February 2, 2001 of MCA it

stated that the total estimated project cost would

be Rs. 5 crores for construction of indoor school,

other allied facilities and to set up a lush green

turf with cricket pitches.

Brief Summary7. However, as per the Annual Report of 2005-06 of

MCA it proposes to construct state of the art

facilities at BKC which consists of tennis courts,

squash, swimming pool, restaurant, gymnasium,

etc. at a approximate cost of Rs. 75 crores.

8. As per the same Annual Report, MCA has awarded8. As per the same Annual Report, MCA has awarded

the contract on BOT basis to M/s B G Shirke

Infrastructure for a period of 10/15 years. MCA has

given exclusive rights to M/s B G Shirke for sale of

3000 nos MCA memberships. The approximate

cost of membership is being sold at Rs. 15 lacs for

life.

Brief Summary

9. The Indian Audit and Accounts department in its

report have also raised several objections in

allotment of plot to MCA.

10.The Income Tax Appellate tribunal has raised

objection on MCA’s status of being a “Public

Charitable Trust” and has cancelled its statusCharitable Trust” and has cancelled its status

effective June 1, 2010

Exhibits

Date Exhibits

February

2, 2001

Request letter by MCA to Chief Minister (CM) of

Maharashtra for RG plot. The letter states that the MCA will permit the ground for the boys from the neighborhood.

February CM of Maharashtra Mr. Vilasrao DeshmukhFebruary

15, 2001

CM of Maharashtra Mr. Vilasrao Deshmukh

issues note to UDD to look into the matter.

May 17,

2001

MMRDA in its 100th meeting on 17th May, 2001

accepted the above request for allotment and

allotted 52,157 sq mtrs on lease for 80 years

ExhibitsDate Exhibits

May 26,

2001

MMRDA Issued letter to MCA stating the

acceptance of the proposal. The details of area

and premium are as follows;

1.Permissible plinth area will be 10% of 52,157

sq mtrs (i.e: 5,215.7 sq mtrs) – No premium

2.Permissible built up area will be 15% of 52,157

sq mtrs (i.e: 7,823 sq mtrs). The lease premium

for this will be @ Rs. 3,400/- per sq mtrs of built

up area Rs. 2,65,98,200/-

3.Plot for open type uses 23% of 52,157 (i.e:

11,996.11 sq mtrs) at a premium of Rs. 1/-

Exhibits

Date Exhibits

May 26,

2001

4. Plot for disciplined public use 67% of 52,157

(i.e: 34,945.19 sq mtrs) at a premium of Rs. 1/-So total lease premium will be Rs. 2,65,98,202/-

The plot shall not be used for commercial purposespurposes

The above amounts were to be paid in two installments

ExhibitsDate Exhibits

June 6,

2002

MCA defaulted in payment of 2nd installmentand MCA issues letter to MCA for waiver of

interest of Rs. 55,752/-

October

23, 2004

MCA writes letter to MMRDA for permission for

project on BOT basis at the total cost of Rs. 50 23, 2004 project on BOT basis at the total cost of Rs. 50

crores over a period of 10 to 15 years

February

27, 2006

India Audit and Accounts Department Principal Accountant General (Audit), Maharashtra raised objection on allotment of plot to MCA without competitive bidding and also terms of allotment were questioned.

Exhibits – Contd…..

Date Exhibits

January

13, 2007

Letter by MCA to MMRDA stating that the

construction work is given to M/s Shirke

Infrastructures on BOT basis

March 31,

2008

MMRDA to Urban Development Department

(UDD) - sends for approval a proposal to modify

DCR 23 (g) (ii) for this plot only for permittingDCR 23 (g) (ii) for this plot only for permitting

additional built-up area for the proposed 2 nos

Mound galleries.

Exhibits – Contd…..Date Exhibits

Annual

Report of

MCA for

2005 – 06

Sharad Pawar suggested that MCA should opt for

BOT basis instead of spending its own money.

Crisil Infrastructure was appointed for evaluation

of proposals. Crisil Infrastructure recommended M/s B G Shirke Construction

Technology Ltd from amongst the three Technology Ltd from amongst the three

proposals received. The terms of agreement in

nutshell are as follows;

1.The concession period will be 17 years

(inclusive of 2 years for construction).

2.The entire cost of the project will be borne by

the operator

3.The operator shall pay non-refundable deposit

of Rs. 5 crores to MCA

Exhibits – Contd…..

Date Exhibits

Annual

Report of

MCA for

2005 – 06

4.Indoor Academy and ground will be fully

managed by MCA and other recreational

facilities will be maintained by the operator.

5.Managing committee shall consist of 6 office

bearers of the Association and 4 members from

the Operator.the Operator.

6.The Operator shall make payment of Rs. 75

crores by the end of 10th year of operation to the

Corpus of MCA.

Exhibits – Contd…..Date Exhibits

Annual

Report of

MCA for

2005 – 06

7.The MCA will offer 3000 Associateships to the

Operator and Fees of the said Associateships

will be kept in a separate ESCROW account to

be operated by the Association.

8.80% of fees will be transferred from ESCROW

account to Operator towards the cost of

construction and balance 20% to be adjusted

against the Corpus to MCA

9.Operator has the right to decide the about the

entrance fees of the 3000 Associateships

offered by MCA.

10.Thereafter the fees for of 3000 additional Associateships will be shared equally between the MCA and Operator

Chronology of eventsDate Particulars

February

2, 2001

Request letter by MCA to Chief Minister (CM) of

Maharashtra for RG plot. The letter states that the MCA will permit the ground for the boys

from the neighborhood.

February

15, 2001

CM of Maharashtra Mr. Vilasrao Deshmukh

issues note to UDD to look into the matter.

May 17,

2001

MMRDA in its 100th meeting on 17th May, 2001

accepted the above request for allotment and

allotted 52,157 sq mtrs on lease for 80 years

Chronology of events

Date Particulars

May 26,

2001

MMRDA Issued letter to MCA stating the

acceptance of the proposal. The details of area and

premium are as follows;

1.Permissible plinth area will be 10% of 52,157 sq

mtrs (i.e: 5,215.7 sq mtrs) – No premium

2.Permissible built up area will be 15% of 52,157 sq

mtrs (i.e: 7,823 sq mtrs). The lease premium for

this will be @ Rs. 3,400/- per sq mtrs of built up this will be @ Rs. 3,400/- per sq mtrs of built up

area Rs. 2,65,98,200/-

3.Plot for open type uses 23% of 52,157 (i.e:

11,996.11 sq mtrs) at a premium of Rs. 1/-4.Plot for disciplined public use 67% of 52,157 (i.e:

34,945.19 sq mtrs) at a premium of Rs. 1/-So total lease premium will be Rs. 2,65,98,202/-

The plot shall not be used for commercial purposes


June

4,2001

MCA issues letter to MMRDA accepting the

proposal, but accepts construction in phases and

accordingly pays 50% of premium

i.e: Rs. 1,26,39,400/-.Payment is also made by

DD for 50% i.e: Rs. 63,19,701/-

August

20,2001

Letter from MCA to MMRDA stating that BCCI has

agreed to finance the project and MCA requested20,2001 agreed to finance the project and MCA requested

for payment of balance amount Rs.63,19,701/-

by end of August 2001.

August

31,2001

Letter by TATA Power to MCA for shifting the HT

cables where it states that the cost of shifting will

be Rs.2 crores


Date Particulars

Sept 26,

2001

Letter from MMRDA to MCA demanding interest

of Rs. 55,752/- for delay in payment of 2nd

instalment

Oct 9,

2001

Letter from MCA to MMRDA requesting for waiver

of Rs. 55,752/-

Date Particulars

Nov 23,

2001

MCA pays amount of Rs. 1,26,39,402/- on

account of full and final settlement of lease

premium.

Dec 13,

2001

MCA pays Rs. 13,19,398/- towards shortfall of

balance payment due for stage 2 development

June 6, MCA issues letter to MCA for waiver of interest of


June 6,

2002

MCA issues letter to MCA for waiver of interest of

Rs. 55,752/-

Sept 22,

2003

MCA writes to MMRDA for additional area of

2500 to 3000 sq mtrs.

Date Particulars

Sept 23,

2003

CM, Sushilkumar Shinde replies to MCA that

matter is being examined

Sept 29,

2003

Letter from MMRDA to Architect seeking

clarification for the additional area as above

Oct 2,

2003

Architect issues clarification and purpose for

additional area of 2500 to 3000 sq mtrs


2003 additional area of 2500 to 3000 sq mtrs

Date Particulars

Nov 23,

2003

MCA issues letter to MMRDA and CM of

Maharashtra to include the following clause…..

“Apart from students of academy, the facilities of

the Academy may be allowed to be used by the

past and present cricketers, umpires, Donors and Associates on such terms and conditions as the Association may think fit”


as the Association may think fit”

Dec

1, 2003

MMRDA vide its 108th meeting approved the

clause… “Apart from students of academy, the

facilities of the Academy may be allowed to be

used by the past and present cricketers, umpires,

Donors and Associates on such terms and conditions as the Association may think fit”

Date Particulars

February

9, 2004

MMRDA issued letter MCA stating that RG plot has

been allotted. Further also approved additional

clause in lease deed as required by MCA. The

additional clause is …”Apart from students of

academy, the facilities of the Academy may be

allowed to be used by the past and present

cricketers, umpires, Donors and Associates on


cricketers, umpires, Donors and Associates on such terms and conditions as the Association may think fit”

March 5,

2004

Executed the lease deed with MMRDA. Plot allotted

is “Plot G block of Bandra Kurla Complex at CTS

No. 4207 of Village KoleKalyan, Tal. Andheri,

Mumbai suburban district.

March 19,

2004

Architect of MCA submits the drawings and

documents


Sept 15,

2004

Letter by MMRDA to MCGM stating issuance of

Commencement certificate upto plinth level

Oct 23,

2004

MCA writes letter to MMRDA for permission for

project on BOT basis at the total cost of Rs. 50

crores over a period of 10 to 15 years

May

11,2005

MCA through its Architect vide letter no

SPA/MMRDA/309 submitted the proposal for 11,2005 SPA/MMRDA/309 submitted the proposal for extension of the basement on 23% portion of plot for the purpose of providing parking spaces without charging any premium.


July 18,

2005

Supplementary lease deed executed between

MMRDA and MCA for use 0f 75.56 sq mtrs of

BUA on 67% of the plot area for construction of

underground tank and pump house. Additional

premium of Rs. 2,56,904/- received by MMRDA

on 17th June, 2005.

December Executed the supplementary lease deed for the December

7, 2005

Executed the supplementary lease deed for the

above amendment

February

3, 2006

MMRDA in its meeting vide resolution 1081

passed in its 115th meeting approved the above proposal without charging any premium on the condition that 50% of the parking spaces will be handed over to MMRDA to be used for public parking on pay and park basis.


February

27, 2006

India Audit and Accounts Department Principal Accountant General (Audit), Maharashtra raised objection on allotment of plot to MCA without competitive bidding and also terms of allotment were questioned.

December

12, 2006

One of the Advocate Madhav Jamdar issued letter

to MMRDA objecting against allotment of exclusive 12, 2006 to MMRDA objecting against allotment of exclusive

rights given to B G Shirke Construction for

membership fees.

January

13, 2007

Letter by MCA to MMRDA stating that the

construction work is given to M/s Shirke

Infrastructures on BOT basis

December

12, 2007

Letter from MMRDA to MCGM stating the issue of

“Commencement certificate” for superstructure for

proposed plot


Date Particulars

Annual

Report of

MCA for

2005 – 06

Sharad Pawar suggested that MCA should opt for

BOT basis instead of spending its own money.

Crisil Infrastructure was appointed for evaluation

of proposals. Crisil Infrastructure recommended M/s B G Shirke Construction Technology Ltd from amongst the three Technology Ltd from amongst the three

proposals received. The terms of agreement in

nutshell are as follows;

1.The concession period will be 17 years

(inclusive of 2 years for construction).

2.The entire cost of the project will be borne by

the operator

3.The operator shall pay non-refundable deposit

of Rs. 5 crores to MCA


Date Particulars

Annual

Report of

MCA for

2005 – 06

4.Indoor Academy and ground will be fully

managed by MCA and other recreational

facilities will be maintained by the operator.

5.Managing committee shall consist of 6 office

bearers of the Association and 4 members from

the Operator.the Operator.

6.The Operator shall make payment of Rs. 75

crores by the end of 10th year of operation to the

Corpus of MCA.


Date Particulars

Annual

Report of

MCA for

2005 – 06

7.The MCA will offer 3000 Associateships to the

Operator and Fees of the said Associateships

will be kept in a separate ESCROW account to

be operated by the Association.

8.80% of fees will be transferred from ESCROW

account to Operator towards the cost of account to Operator towards the cost of

construction and balance 20% to be adjusted

against the Corpus to MCA

9.Operator has the right to decide the about the

entrance fees of the 3000 Associateships

offered by MCA.

10.Thereafter the fees for of 3000 additional Associateships will be shared equally between the MCA and Operator


Date Particulars

February

22, 2008

Request from Architect of MCA for approval of 2

nos proposed mound galleries

February

29, 2008

MMRDA issued letter to MCA and Architect

stating the 2 nos proposed mound galleries

cannot be considered for various reasons.

March 12, Letter to MMRDA for additional FSIMarch 12,

2008

Letter to MMRDA for additional FSI


Date Particulars

March 17,

2008

MCA issues another letter to MMRDA for

additional FSI . Ground coverage from 10% to

15% and the FSI from 15% to 20% of the total

plot area.

March 31,

2008

MMRDA to Urban Development Department

(UDD) - sends for approval a proposal to modify

DCR 23 (g) (ii) for this plot only for permittingDCR 23 (g) (ii) for this plot only for permitting

additional built-up area for the proposed 2 nos

Mound galleries.

August 6,

2008

UDD issued order for the above proposal of

MMRDA to modify DCR no. 23 (g) (ii)


Date Particulars

December

12, 2008

UDD by its notification no TPB-4308/829/Q No.

144/2008/UD-11 sanctioned the modification in

MMRDA’s DCR no. 4 (A) (i) for BKC Notified area

whereby ………Refer relevant page for further

March 9,

2009 /

May 14,

Internal note of MMRDA for approving the above

modification

May 14,

2009 /

May 5,

2010 /

May 1,

2010 /

July 9,

2010


Date Particulars

August

26, 2010

MMRDA vide its resolution no 1241 approved the

additional BUA of 2607.85 sq mtrs to MCA at 25%

of the Ready Reckoner Rate and other terms to

be fulfilled by MCA

April 30,

2012

Internal note of MMRDA for modification in lease

premium for additional BUA of 2607.85 sq mtrs

will be Rs. 6,38,92,325/-. Further MCA has not will be Rs. 6,38,92,325/-. Further MCA has not

surrendered the 78 car parking spaces.

May 17,

2012

MMRDA issued letter to MCA about the above

premium of Rs. 6,28,92,325/-

August 8, 2012

I.T.A. NO. 1700/Mum/2011 Mumbai Cricket Association, Vs. Director of Income Tax (Exemption), Cricket Centre, Mumbai. Wankhede Stadium

Statement of cash flows of B G Shirke Constructions

Particulars Inflows (Rs. Crs) Outflows (Rs. Crs)

Cost of construction 75.00

Amounts from memberships sale for 3000 nos @

Rs.15 lacs each (80% share of Rs. 450 Crs)

360.00

Net cash inflows over period of BOT (before

interest)

285.00

Net Cash inflows for B G

Shirke Rs. 285 Cr (before

What is the need for

BOT when the

construction can be Shirke Rs. 285 Cr (before

Interest)construction can be

completed in 2 years

and becomes

operational from 3rd

year

Loss to

MMRDA ????

Who is the

ultimate

beneficiary in

the profit ???

Statement of cash flows of MCA

Particulars Inflows (Rs. Crs) Outflows (Rs. Crs)

Payments to MMRDA 2.05

Non-refundable security deposit from B G Shirke 5.00

Sale of 700 memberships at concessional rate of

Rs.10,000/- each

0.70

Amounts from memberships sale for 2300 nos @ Rs.15

lacs each

345.00

Net cash inflows for MCA 348.65

Net Cash inflows for B G

Shirke Rs. 348.65 Cr.

MCA a non-

profitable

organisation

????

MCA is it a

organisation for

development of

Cricket or into the

business of

running five star

clubs ????

Income Tax

Appellate tribunal

has noted all the

above findings and

is in the process

cancelletion of its

status of Public

Charitable Trust

mumbai cricket association(mca) exposed

News & Politics

letter of mca

mca issues letter

mca free of cost

nos mca memberships

allotment of plot

premium of rs

sq mtrs plot of land

area rs