Contentious land decision by Desai

Industries minister allowed Maruti Suzuki to use industrial land for commercial purposes.

A plot bought by Maruti Suzuki in the Mahape area is now at the centre of a controversy. Documents in possession with this newspaper indicate that industries minister Subhash Desai signed the file allowing commercial use of the industrial land even though CEO of MIDC Bhushan Gangrani had denied permission for doing so in 2014. Mr Desai, while signing the file, referred to an earlier 2013 circular by joint CEO Dr P. Anbalagan that recommended commercial use be allowed on A and B class industrial land.

As per the documents, plot number Gen- 25 and Gen-25A admeasuring 48,632 square metres in the Trans Thane Creek (TTC) Industrial area located at Pavane (Mahape) was leased out to M/s Searle (India) Ltd in 1967 by MIDC. Later, after a Bombay high court order dated December 14, 2007, the name was changed to M/s RPG Pharmaceutical Ltd. After an amalgamation in 2011, the company was renamed to M/s RPG Life Sciences Ltd. RPG Life Sciences Ltd divided the leased plot Gen-25A and formed a plot Gen-25B and sold it Maruti Suzuki on May 20, 2014 for '13 crore. While buying the land, Maruti Suzuki specified that the purpose of the land was to set up a training centre for dealers and technicians. However, later Maruti Suzuki bifurcated the land and approached MIDC and asked that on the basis of the sale-purchase deed between RPG and them, they be allowed to use the land commercially. Maruti Suzuki mentioned that they wanted to set up a showroom there.

CEO of MIDC Bhushan Gagrani denied permission for this proposal. Mr Gagrani said, “Sub-division of industrial plot and using it for commercial purpose in not allowed in the MIDC Act.” He further said, “When I received the proposal of subdivision of the plot, Gen-25B2 of Maruti Suzuki (I) Ltd to allow commercial use, I rejected it immediately on February 14, 2014.”

Mr Gagrani wrote on the file: “We should not promote commercial activity. Sub-division (of plot) may be taken at an appropriate level. However, the proposed industrial activity only, may be permitted.”

However, earlier, on November 5, 2013 a minor modification committee (MMC) headed by Mr Anbalagan had recommended that commercial activity could be allowed on bifurcated plots. He mentioned in the circular that industrialists were demanding that the policy of “change of purpose of industrial land to commercial” and that the MMC could think over it. He further recommended that this could be done with permission from the CEO and MMC.

Mr Desai, when signing on the file allowing the change of purpose of land use, refers to Mr Anbalagan’s circular despite Mr Gagrani’s later refusal of permission. Mr Desai wrote on he file: “I have gone through the proposal as per A and B read alongwith circular dated 5/9/2013. Request of change in use of land from Industrial to commercial allowed.” (sic)

A senior official from industries department on condition of anonymity pointed out that Mr Anbalagan’s circular had not been approved the Director Board of MIDC. “When you need to take a policy decision, it should be presented before state cabinet for final approval. But, the procedure was ignored,” he said.

When asked about the issue, Mr Desai said that he had not broken any rule. “Rules have been followed, but I will still look into the matter to see if there was any wrongdoing,” he said.

Some of the documents were handed to the newspaper by RTI activist Vikrant Joshi, who has filed an RTI on the commercial use of industrial plots.