The Times of India       24.10.2014  

BMC babus’ bribe rate card for builders: Rs 1,200 a square feet

MUMBAI:
Corrupt officials in the BMC’s building proposals department are
extorting huge sums from developers to clear legal projects. The
situation is such that recently a group of 25 top builders met to decide
on approaching senior department officials to seek reasonable bribe
rates.

The new development control rules introduced two years
ago leave no scope for manipulation or illegality in building plans. So,
engineers intentionally delay sanctioning projects to pressure builders
to pay up. Any delay in starting a building project could cause severe
loss to developers, who procure loans at interest rates as high as 24%.

Sources said the three engineers arrested by the anti-corruption bureau
(ACB) in the E-Ward office in Byculla on Monday had “crossed all
limits” in their demands. “The complainant was a small builder, who was
at his wits end and was forced to approach the ACB to trap these
officers,” said industry insiders.

One of the engineers was
earlier posted at the Kandivli office, but was transferred to the
Byculla division following complaints from builders in the western
suburbs. On Tuesday, civic chief Sitaram Kunte told TOI that the three
engineers have been suspended following their arrests for allegedly
accepting Rs 15 lakh in bribe.

Industry sources said the bribe
demands are mind-boggling: Rs 1,200 a sq ft in the island city, Rs 800 a
sq ft between Bandra and Andheri, and up to Rs 600 a sq ft in the
eastern suburbs. “It could cost a builder Rs 5-30 crore, depending on
the size of the project,” said industry sources. Builders complained
that despite complaints, the civic administration has failed to rein in
these rogue officials.

“I have repeatedly asked the Maharashtra
chamber of housing industry to complain against any official who
demands a bribe,” said Kunte. “It is an ethical issue and very difficult
to control.”

Construction industry insiders said corruption
increased manifold after the development control rules were amended in
2011 to curb the discretionary powers of officials to favour certain
builders.

“Since such powers are gone, officers now hold back
files and demand huge sums from builders just to sanction what is laid
down in law,” said architect Shirish Sukhatme. Probably the most
sought-after posting is in the Bandra (West) section. For over a decade,
a local politician-turned-builder used to influence transfers of
officers in this section. The Bandra-Khar-Santa Cruz belt is witness to
some of the most blatant building violations, with skyscrapers permitted
to be built on extremely narrow plots.

“In the 1980s, builders
would voluntarily give ‘bakshish’ to officers for clearing files as a
goodwill gesture. Today, these officers demand it as a right as they
know builders are making super profits,” said an industry source.

Several builders said that at every stage, officers and engineers
demand Rs 5-20 lakh for basic permissions to start construction. “The
all-important occupation certificate could set back a developer by over
Rs 1 crore,” they said.

In 2012, the civic administration
issued a circular to speed up building approvals, curb corruption and
fix responsibility for delays. But it was conveniently buried.

The circular stipulated a maximum of 60 days for plans to be approved
and warned department staff that “any lapse” in approving plans within
the period would be “viewed seriously”. Former municipal commissioner
Subodh Kumar issued it after complaints that officials delayed approvals
by seeking irrelevant information, forcing developers to part with
bribes.

But over the past few years, a gang of professional
blackmailers claiming to be RTI activists have connived with BMC
engineers to extort money from builders. A false complaint to the BMC
could stall work for a couple of months. Any delay results in losses. A
builder prefers to pay up. “Sometimes, civic officers themselves tell us
to settle with these people,” said a developer. He alleged that some
BMC employees were hand-in-glove with extortionists and could well be
guiding them.