‘CMDA paid Rs 83 lakh to raze building in Moulivakkam’

The Court observed that the developer could not wriggle out of his liability to pay all the expenses incurred by the State to raze down the second building.
Debris of the demolished tower at Moulivakkam. (Photo | EPS)
Debris of the demolished tower at Moulivakkam. (Photo | EPS)

CHENNAI: The cost of demolition of a 11-storey building at Moulivakkam, consequent to the collapse of another building at the same site killing 61 persons in 2014, seems to be haunting Chennai Metropolitan Development Authority (CMDA). It is learnt that CMDA had borne the cost of `83.21 lakh for bringing down the building on November 2, 2016, without government sanction and in violation of Supreme Court directions.

An audit report accessed by Express states that Supreme Court in its order on May 12, 2016, has clearly stated that the cost of demolition should be borne by M Bala Guruswamy, managing director, Prime Srishti Housing, but it seems Guruswamy did not pay anything for the demolition.

Incidently, the building was bound for disaster, as it was fit only to be a four-storey structure, explained L P Singh, general manager (Structure), National Building Construction, who was one of the committee members appointed by Supreme Court to prepare a report. Thus, the structure was unable to take the additional weight of seven floors, he had told Express then.

The report states that when CMDA was neither a petitioner nor a respondent, it could not be ascertained in audit as to why the expenses for demolition of the building was met from CMDA funds as there was no order from the State to demolish the unsafe building.

“The Supreme Court had directed the State government to demolish the unsafe building,” the report stated. It observed that the expenditure incurred out of the CMDA funds was not recouped either from the builder or from the government in the form of grant till date.

The report says bills were raised in Kancheepuram Collector’s name and the expenditure was booked in the CMDA’s books of accounts under various heads, including CMDA VIP refreshment. “The expenditure to the tune of `83.21 lakh towards the demolition process should be recouped at the earliest and brought back to CMDA account under intimation to the audit,” the report stated.Official sources could not be contacted.

This comes when the Madras High Court last month prevented an alleged attempt by developers of the Moulivakkam residential site to reclaim the land spread over 109 cents without paying the amount spent by the State for demolition. The developer contended that he had already paid charges for obtaining construction approvals and the amounts must be adjusted towards demolition charges.

The Court observed that the developer could not wriggle out of his liability to pay all the expenses incurred by the State to raze down the second building.

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