Hotel plot allotment to Cong-I MP decried
Published date: 25th Jul 1981, Mixed Paper Article
View PDFExpress News Service
NEW DELHI, July 24:
The Works and Housing Ministry and the New Delhi Municipal Committee came under sharp attack from opposition members of Parliament on Friday for allotting plots on instalments to Communist leaders and Congress(I) men on preferential terms to individuals close to the ruling party.
The Minister for Works and Housing, Mr Bhishma Narain Singh, and the N.D.M.C. President, Mr P. Behl, were flayed for allotment of a hotel plot on a long lease, near Connaught Place, to a Congress (I) MP (name not given in the news report). Shores. MPs at a discussion in the accommodation sub-MP’s consultative committee attached to the Ministry of Works and Housing.
It came out at the meeting that the N.D.M.C. had allocated the site to the Congress (I) MP’s firm during parliamentary outset even flunking tenders. Strong criticism of the Ministry of MP’s for aiding Congress (I) men.
Mr Behl, however, said that the plot of land to the N.D.M.C. was on the decision that it owned the plot—subject to repair, white repair, the N.D.M.C. could however, build and run a hotel on its own or with collaboration, if necessary.
Questioned by members about the propriety of the deal, the Minister for Works and Housing reportedly evaded responsibility saying the ministry had given the site to the N.D.M.C. and it could not be held responsible for what the N.D.M.C. did. According to some MPs present at the meeting, the minister said it was not necessary for the N.D.M.C. to take the permission of the ministry before disposing of the plot.
Mr Behl contended that there was nothing wrong in giving the plot out to the Congress (I) industrialist; he said even earlier a hotel plot near Connaught Place had been given out on licence without inviting tenders. Opposition M.Ps. were annoyed that Mr Behl should make a precedent of a questionable deal in which a ruling party supporter was given a plot for a hotel on Barakhamba Lane for much less than the prevailing market rent.
One member alleged that the Government was using the NDMC as a conduit for bestowing favours on certain pro-Congress (I) individuals “for a consideration.” Mr Behl explained to the MPs that the company would pay the NDMC an annual rent of Rs 2.63 crores and the licence could be renewed after 33 years. Members, however, felt that the plot could have fetched a higher rent if tenders had been called. The NDMC President insisted that the successful company’s offer was the best of 14 offers received.
Members argued that the NDMC had fixed surprisingly liberal terms and the licence could not be terminated before the expiry of 33 years. The only two conditions fixed were that the licencee would pay the annual rent in time and commission the hotel in time for the Asian Games.
One of the terms under which the ministry had allotted the four-acre plot to the NDMC was that “the NDMC will not sub-lease the plot but can enter into arrangements for running the hotel which will not involve sub-lease of the plot.” There is no condition in the present agreement allowing the NDMC a hand in running the proposed hotel.
Another condition was that the “hotel should be commissioned by the NDMC” before the start of the Asian Games. This clearly meant that the land was given for an NDMC run hotel. The NDMC chief took the plea that licencing
the plot for 33 years did not amount to a sub-lease.
