LUCKNOW: The controversial sale of the Uptron premises by the Industrial Finance Corporation of India (IFCI) to a Lucknow-based private builder has taken a curious turn with the Lucknow Municipal Corporation (LMC) cancelling the 30-year lease deed granted to Uptron in 1985. The cancellation which comes two years before 2015 (when the lease was to expire), has technically brought the property back in LMC's fold. The municipal body, while objecting to further sale of property, has also decided to move the high court.

The cancellation of the lease agreement comes a fortnight after IFCI sold off the Uptron premises spread over an area of around 5.5 acres near Gomti barrage to a private builder, Shalimar Corp Limited. The IFCI had proceeded to sell the property on March 1. It also decided to sell off nine acres of land on Dewa Road. This land belonging to UP State Industrial Development Corporation was also leased out to Uptron in mid 1980s. Sources in UPSIDC said that the corporation is yet to object to the sale of this property.

The IFCI, however, informed the LMC on March 11. Speaking to TOI on Monday, municipal commissioner, RK Singh said that the LMC received the letter on March 15. "The lease deed has been cancelled and hence technically the property comes back to LMC under the Municipal Act," Singh said and added that they would be moving the high court in any case. The municipal commissioner said that they have also asked the IT department to stop the 'unauthorised sale' of property.

"Even if the lease was not cancelled, the property would have come back to LMC in another two years," the municipal commissioner said. As per the agreement, LMC had leased out the land to Uptron for "equitable use''. The behemoth entity, however, mortgaged the property in 1987 to lift around Rs 10 crore from IFCI and other financial institutions. This was, however, an unsecured loan for which the state government did not give any guarantee.

At the same time, liabilities continued to mount on UPTRON. By 2010, the total liabilities had piled up to more than Rs 200 crore even as Board for Industrial and Financial Restructuring (BIFR) intervened. Principal secretary IT, Jeevesh Nandan said that the liabilities include Rs 70 crore as employees' salary, Rs 45 crore as trade tax and Rs 10 crore as provident fund. Many employees have been adjusted in other departments, while there are around 50 employees who are a payroll of Uptron. Nandan said that the financial institution had even agreed for one-time settlement scheme under which Rs 32.7 crore were to be paid to the IFCI. "The settlement had been done," he maintained.

However, things took a twist on August 2, 2012, when IFCI slapped a demand notice on Uptron, seeking repayment of Rs 140,48,74,218 within a stipulated time of 60 days from the date of the issue of the notice. The outstanding on the company was calculated on July 31, 2012. When Uptron failed to comply with the notice, the financial institution toughened its stand and seized nearly 6 acre of its land in Jugauli in Gomtinagar under section 13(4) of the Securitization Act, 2002.

The IFCI in its seizure notice had said that Uptron defaulted on the payment of more than Rs 140 crore with further interest on contractual rates till payment. The institution also cautioned the state-owned electronics company and the general public against dealing with the property. "Any such dealing will be subjected to the charge of IFCI for over Rs 140 crore," the notice, which was pasted on Uptron building in Gomtinagar, said.

Sources in the department of electronics said that Uptron had even managed to avail the no-objection certificate (NOC) from the LMC while mortgaging the property with the financial institution. This raises a whiff of suspicion if LMC was in the know-how of the sale. "This is a matter of investigation. The LMC was not in the loop when the premises were auctioned to the highest bidder. At least the LMC should have been informed about this," said Lucknow mayor, Dinesh Sharma.

Set up in 1979, Uptron was a leading manufacturer in early 80s and its television sets were popular all over the country. But, unprofessional management turned it into a loss-making entity within a span of 10 years.

MUMBAI: In an attempt to avoid occupancy of roadside spaces by cars, the state has decided to allow developers to use 100% of basement area in an upcoming building for parking. At present, only 50% of the basement area can be used for parking. Also, buildings can have multiple levels for parking as against the existing one or two levels.

In order to create more parking space, the government is set to change rules under the Maharashtra Regional Town Planning (MRTP) Act and will soon invite public suggestions and objections before implementing the plan.

"While builders are currently allowed to construct only one or two basement levels for parking, they will able to dedicate multiple floors once the rules are changed," said a senior Mumbai Metropolitan Region Development Authority (MMRDA) officer.

While the civic body has already changed its rules under the MRTP Act, the Mumbai Metropolitan Region Development Authority (MMRDA) will soon follow suit. The notification to this effect was published by MMRDA in newspapers on Saturday.

"With the basement area being freed of floor space index, more developers would like to build multiple parking slots in upcoming projects. The changes may also be applied in case of buildings going for redevelopment. But the chances of existing structures creating more space for parking in their basements are slim," said a senior state government official.

The MMRDA has sought tenders, inviting contractors to maintain 1,600 parking spaces, including 1,100 for four-wheelers and 170 for buses, in BKC. Sources said the changes under the MRTP Act would double the parking space in BKC. "Many buildings have scope for expansion," said a source.Meanwhile, the town planning experts in the city have welcomed the move. "This will surely facilitate more parking space in the upcoming or redeveloped buildings. Waving of premium would encourage developers to create more parking spaces. Especially since airport and other restrictions do not allow buildings to go up, this is the welcome step. However, my biggest concern is of enforcement. I think administration should ensure that with this amendment more parking spaces are created and used not just by the residents or employees but also by the visitors of the buildings," town planning expert V K Phatak said.

Promoting parking in the basements to avoid them on roads

1) Entire basement can be used for parking in the buildings instead of earlier rule to allow only 50 per cent basement use for parking purpose

2) Against one or two basement levels allowed for parking in any building, now the developers can build multi-level parking floors in the basement

3) Developers would earlier pay five per cent premium on the basement parking which has been waived off completely

4) MMRDA on Saturday invited suggestions and objections over these three amendments for the BKC area being made in MRTP Act. In fact such an amendment is being made in the Maharashtra Regional Town Planning (MRTP) Act for entire Mumbai region. BMC has already made changes to this effect.

5) Besides, MMRDA comes out with a tender to award maintenance for 1600 parking spaces, including around 1100 for cars and around 170 for buses in its BKC area. The amendment would facilitate almost double the spaces in the existing scenario.