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LATEST NEWS UPDATES | Anna’s top man in Mumbai floated NGO to help builder-Yogesh Sadhwani

Anna’s top man in Mumbai floated NGO to help builder-Yogesh Sadhwani

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published Published on Mar 30, 2012   modified Modified on Mar 30, 2012

E-mail circulated by an RTI activist alleges irregularities in the Chira Bazaar cluster development project

On Sunday, when Anna Hazare sounded the war cry against the government with a day-long fast in Delhi, the India Against Corruption cadres in Mumbai were battling a crisis that can severely dent the reputation of one of Anna’s top aides.

On the radar is Mayank Gandhi, the face of the India Against Corruption movement in Mumbai; and a key member of Team Anna alongside Arvind Kejriwal and Kiran Bedi. An RTI activist has accused Gandhi’s NGO named Remaking of Mumbai Federation (ROMF) of being in cahoots with Lok Group, which is one of Mumbai’s biggest construction companies, regarding a cluster development project in C Ward (Chira Bazaar and parts of Kalbadevi).

An e-mail by RTI activist Krishnaraj Rao, which is in circulation since Saturday, calls the NGO a mere front of the Lok Group, and alleges the developer eventually sold the entire project to another party for Rs 10 crore.

Krishnaraj Rao’s allegations are based on the complaints sent to the State government, and some documents which are in the public domain. The crux of the matter is the redevelopment of Chira Bazaar, known as the city’s oldest ‘gold street’, where new buildings were proposed on area spreading 30 acres, to accommodate 8,000 tenants currently residing in the old/dilapidated buildings.

The project is the result of a building collapse at Chira Bazaar in 2005, following which it was proposed that all buildings in the ward be redeveloped as a whole. Two years later, ROMF was formed; with Gandhi has its secretary. The NGO proposed the concept of cluster development for the area, and offered to lobby with the government to get the approvals.

Even as the NGO started working in the area, another company named Remaking of Mumbai Housing Infrastructure & Finance Ltd (ROMHIF) came into picture. It was a commercial entity, with Lok Group having 49 per cent stake.

Mayank Gandhi was a director in Lok Group at that time; and is nephew of Lalit Gandhi, the Lok Group chairman. ROMHIF got the approval of the residents for their cluster redevelopment model, and a proposal was sent to the civic body.

Even as BMC okayed the proposal, ROMHIF sold the project to Unity Realty and Developers Ltd for Rs 10 crore. This agreement (dated December 7, 2011) was detailed on Rs 100 stamp paper; and bears Mayank Gandhi’s signature as witness to the deal.

Krishnaraj Rao’s e-mail said, “This NGO is spearheaded by Mayank Gandhi, Lalit Gandhi’s charismatic nephew who went on to achieve national fame last year as a major architect of Anna Hazare’s India Against Corruption campaign.

By fudging the lines of demarcation between commercial interest, private interest and public interest, this NGO merged Lok Group’s commercial interest with the ambition of over 8,000 tenants living in dilapidated buildings to have better homes,” his e-mail said.

The Chira Bazaar project itself has run into problems. In January, the State government’s high-power committee rejected the redevelopment plan, and pulled up BMC for clearing it.

On February 4, Utsal Karani, secretary of Janhit Manch, wrote to Chief Minister Prithviraj Chavan and senior State officials demanding an inquiry into a “nexus” between Gandhi’s NGO and the developers.

Mayank Gandhi refuted the allegations when Mumbai Mirror contacted him. “ROMF the NGO had expenses that were paid for by the Lok Group.

The NGO had no commercial interests, and our role was largely to lobby with the government to allow cluster development in several parts of the city, Chira Bazar being one of them. When we made the proposals to State, the officials told us that our plans were very theoretical, and that we must execute a model. Hence, the commercial arm - ROMHIF - came into the scene,” he said.

He said that everything about the development was legitimate and that his “conscience was clear”. Gandhi said, “ROMHIF did all the ground work in Chira Bazaar; and hence, they had all the rights to sell it to whosoever they wanted. Yes, I did sign on the agreement as a witness to the deal between ROMHIF and Unity, but it was for the betterment of the area. There was nothing to hide.”

The India Against Corruption officials put on a brave front. Preeti Sharma Menon, spokesperson of India Against Corruption (Mumbai) said that the members have complete faith in Mayank Gandhi. “India Against Corruption is a movement, and a lot of people are part of it. The core group and those involved with the movement have immense faith in Mayank Gandhi,” she said.

Mumbai Mirror, 26 March, 2012, http://www.mumbaimirror.com/article/2/2012032620120326020917746598ee6af/Anna%E2%80%99s-top-man-in-Mumbai-floated-NGO-to-help-builder.html


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