Maharashtra govt's Delhi guesthouse contractor to reap Rs1,000 crore bonanza

A little-known contractor appointed by the public works department (PWD) to build a new Maharashtra Sadan building in Delhi for Rs50 crore, stands to reap a windfall of around Rs1,000 crore, thanks to the state's largesse.

The opulent state guest house in Lutyen's zone was already the subject of controversy after it came to light that PWD minister Chhagan Bhujbal's family and associates were involved in the construction.

The minister denies the allegation and the complex, which was to be inaugurated tomorrow has now been indefinitely postponed because of the controversy surrounding it. The issue was raised in the legislative assembly by the BJP yesterday.

In a move that raised eyebrows all around, the construction was awarded to K S Chamankar by the PWD, without inviting tenders, five years ago. Under the agreement Chamankar would build three public buildings (including Maharashtra Sadan in Delhi) at an estimated cost of Rs100 crore and hand them over to the state government.

Meanwhile, construction of a new administrative office building contracted to the same contractor,  for the Regional Transport Office at Andheri and a state guest house called High Mount at Malabar Hill, both in Mumbai, are yet to be completed.

According to government sources cited by The Times of India, the said contractor was offered development rights of a slum on the Andheri RTO land, in Mumbai.The newspaper quoted other sources as saying that the 4.5 lakh sq ft free sale component was worth close to Rs1,000 crore if Chamankar were to decide to sell it at today's market price.