life in general: "i sit here watching..."

"I sit here watching..."

10.45 pm, Monday, 25 Feb '08: As I sit here watching, on my notebook computer, Parzania movie (I did a review of this movie exactly a year ago in February 2007) for probably the umpteenth time I am yet again moved deeply by the many moments and scenes in the movie.

Of those many scenes, I wish to describe just one in this post -- it involves the American character in the movie typing in his typewriter and commenting on the Parsi woman (played by Sarika) who lost her son in the Gujarat genocide of February-March 2002. He types, "I sit here watching the strongest woman I have ever known understanding that the Lord only gives a person a burden they are strong enough to handle; that the burdens must fall somewhere in this world and when they fall on you it is not just a test but a symbol that life knows you have the strength to endure them. Never in my life I would have guessed that religion could both be the cause of the problem and the solution."

life in general: criminal water wastage by all of bombay!

The way Bombay uses its water and is dumb about it would shock any sensitive society concerned about using natural resources properly. There is criminal wastage of Bombay Municipal Corporation-supplied processed drinking water by the thousands of residential co-operative housing society buildings, private bungalows and office buildings.

This wastage happens when water is pumped from the ground-level storage tank to the tank at the terrace. When the terrace tank gets filled up it overflows. The watchman at the ground level, even if alert, gets to know about the overflow only when he sees it in the drain pipe that comes from terrace to ground floor, and only then he goes to the pump room to switch off the pump. It takes anywhere between 3 and 10 minutes before the water overflow is halted. It is much more if the watchman does not immediately see the overflow and sees it 5-20 minutes later.

When this happens, in a single building itself, about three to seven thousand litres of water get wasted every day. This happens in all those buildings who have not installed electronic cut-off mechanisms that automatically stops the pump when the water in the terrace tank reaches a little below the overflow level. In my estimate, 7-8 of 10 buildings do not have this. Even in those who have it in a lot of cases the electronic system gets faulty and is not repaired, rendering it useless.

The BMC turns a blind eye to this criminal wastage. It is high time it is made accountable for it.

But the onus is also on the affluent citizens staying in the residential buildings or working in the office buildings to be aware of this kind of water wastage and install electronic systems to put a stop to it.

Of course, water gets wasted in other ways too -- keeping water taps open at full force, keeping showers on when applying soap on body while bathing, keeping tap on while brushing teeth or shaving, using 10-15 litres flush tank water for every little piss in the toilet, not repairing leaking taps, and so on and so forth.

life in financial markets: ipo turbulence

The primary market in equities in India has seen a major shake up in the last month. Here is something on it I wrote for Business World last week:

IPOs TORPEDOED

It was not unexpected but the level of investor indifference for recent IPOs has exposed the hollowness of the primary market.

Over the last 10 days, many cups of tea and coffee have been consumed thanks to the turbulence in the primary market, the market for initial public offers (IPOs). Investment bankers and promoters of companies have been holding long meetings in the midst of their ongoing IPO offer period to decide whether to abort their IPOs due to extremely poor response from investors.

The late January global equity markets' mini-meltdown and the continuing chill this month has led to an inevitable shake-up of the Indian primary market for equities. The grammatical irony too is not lost on some market players -- the secondary was taking the lead and the primary was following later.

It began in late January with offer price revisions in some IPOs. It kept getting progressively worse. This month saw issues not just revising their offer prices 10-20 per cent down but also extending their bidding offer period by 2-5 days. It finally exploded with three IPOs--Wockhardt Hospitals, Emaar MGF Land and SVEC Constructions--fully withdrawing their issues mid-way through. No doubt this was the end result of those umpteen cups of tea and coffee in their meetings with their investment banking firm-issue lead managers. "The potential reputation risks to our clients were weighed in the context of the loss of credibility that it will suffer if at the close of the IPO bidding period the issue was not even fully subscribed," says an official of one of the leading investment bankers involved with the Emaar IPO who did not want to be named.

Shifting sands. At the other end of the spectrum, at the trading desks of foreign institutional investors (FIIs) and the homes or workplaces of individual high net worth or retail investors, the dynamics of the analysis of the fundamentals of the IPOs was undergoing a subtle transformation. "Realisation is dawning on many investors that IPO valuations may be on the higher side and they are becoming rational now and their risk appetite has been moved by recent global market weakness," says Stuart Smythe, executive director and head of equity, Macquarie Securities India." "In such times of increasing volatility across all markets, preservation of capital and managing existing positions rather than putting efforts to build new positions becomes a priority for global equity fund managers."

This was clearly visible in the IPOs that were withdrawn mid-way. Take the case of Emaar's Rs 6,000-odd crore IPO issue. It first revised its book building price band from Rs 610-690 to Rs 530-630 and then extended its offer period of 1-6 February to 11 February. At the close of bidding hours on 8 February, it had received subscriptions of only 29 per cent of the quota reserved for FIIs and domestic institutional investors, even as the retail investors category was subscribed a bit higher at 47 per cent and the non-retail non-institutional investors' quota was filled by 78 per cent. It was the lukewarm response from FIIs that terrified the company and its book running lead managers, Enam Securities and DSP Merrill Lynch, enough to withdraw the issue on the next bidding day, 11 February, also the last day of the offer period.

It was worse with Rs 625-odd crore Wockhardt Hospitals IPO that opened on 31 January but at the close of 7 February saw only six per cent of its institutional investors' quota getting subscribed, 51 per cent by retail investors and only five per cent of non-institutional non-retail.

Implications. The withdrawals have severe implications for the equity market. "The IPO market is important from the economic perspective; it gives opportunity for companies to raise resources and acts a channel for investors to invest in such companies," says Devendra Nevgi, CEO and CIO of Quantum Asset Management, the managers of Quantum Mutual Fund. "When companies withdraw their IPOs you have to ask the question whether they really required the money in the first place."

The valuation question looms large on the IPOs presently notwithstanding the fact that majority of IPOs in the last year have listed at a 10-100 per cent premium over the offer price raising questions about whether the promoters could have fetched a higher price for their issues. "If an IPO is priced at a premium to regional and local peers, global money managers struggle to justify assessing a new offering at a premium, when their existing holdings are at discount, or comparables are trading at fairer values than a new offering," says Macquarie's Smythe. For instance, the Price to Earnings ratio of Emaar, a realty play, was much higher than the listed realty stocks like Unitech and DLF that had fallen steeply in the secondary market slide.

The secondary market prices of newly listed stocks from IPO in the last two months have also seen a significant correction in their prices (see table IPO torpedoed). The most dramatic case was the Rs 10,123 crore IPO issue of Reliance Power. Issued at Rs 450, with a discount of Rs 20 for just the retail investors, it got listed on 11 February. It was the first big IPO in recent history that got traded at a discount to the issue price on the day of listing. Its average traded price on the National Stock Exchange on the listing day was Rs 416.8, a 7.4 per cent fall from the issue price.

IPOs Torpedoed
Recently listed IPOs have taken a harsh beating from the market
	Issue size (Rs crore)	Issue price (Rs)	Listing date	Listing day's price (Rs)	Price on 12 Feb (Rs)
J. Kumar Infraprojects	72	110	12-Feb-08	100.1	100.1
Reliance Power	10123	450	11-Feb-08	416.8	356.1
Future Capital Holdings	490	765	1-Feb-08	882.0	873.8
Precision Pipes & Profiles	75	150	11-Jan-08	142.8	80.6
Manaksia	248	160	8-Jan-08	178.9	83.3
BGR Energy Systems	438	480	3-Jan-08	898.8	576.8
Brigade Enterprises	647	390	31-Dec-07	382.4	270.3
Transformers & Rectifiers	139	465	28-Dec-07	727.9	473.5
Jyothy Laboratories	304	690	19-Dec-07	790.7	694.5
Kolte Patil Developers	276	145	13-Dec-07	187.6	128.1
Edelweiss Capital	691	825	12-Dec-07	1525.2	856.9
Mundra Port and SEZ	1769	440	27-Nov-07	984.7	681.4
Source: NSE, BW research

Though not completely unexpected the dramatic abortions of IPOs have bought the investment bankers to some senses. "We do not have a crystal ball," says the investment banking official. "Through our road shows for institutional investors we had gauged the response and also priced the issue accordingly, but that a major crash in the secondary market would happen in the time lag between the road shows and the issue offer period was not predicted."

But the psyche of the companies, investment bankers and the investors, though scarred by this month's experience, would evaporate the moment equity markets worldwide pick up on renewed global equity funds inflows. Such is life in the financial markets!

life in general: (part 3) left's modi on rampage again...

The chemical SEZ (special economic zone) (see here for more) that was cancelled in Nandigram is now coming up at Nayachar. At Nandigram, the people displacement issue was predominant that led to stiff resistance. At Nayachar, the ecology is in terrible danger of being completely devastated (for photos of Nayachar download this pdf document). I share below an insightful write-up on this matter.

The way I look at it is that Buddhadeb Bhatachara, the chief minister of West Bengal, is to the Left parties in India what Narendra Modi is to the Right-wing parties in India. He is the Left's Modi (more here and here). Some similarities in their colleagues also -- Brinda Karat is to the Left what Sushma Swaraj is to the Right.

Here is that report:

Date: 16 Feb 2008 08:26:12 -0000
From: seztrack@yahoogroups.co.in
Subject: [seztrack] Digest Number 478
To: seztrack@yahoogroups.co.in

An Article on Nayachar

Posted by: "Sukla Sen" suklasenp@yahoo.co.uk Sat Feb 16, 2008 12:41 pm

This was published in The Statesman dated 12th. Feb.'2008

Nayachar - Terminal Symptom of a Malady

The proposal for a chemical hub at Nandigram, in West Midnapur district was aborted due to an unprecedented revolt encompassing most sectors of Civil Society. The West Bengal Government has now zeroed in on Nayachar, an island that emerged from the sea in the nineteen thirties in the offshore region of the Bay as an alternative.

Located near the confluence of the Haldi river and the Bay and virtually within the coastal offshore zone, it is a very small and flat island fully made up of unconsolidated alluvium that rose just three metres above the sea. GSI drilling also showed that it is similar material down to thirty metres. In the same offshore region, Lohacchhara, Supari Bhaga , Kapasgadi and Bedford islands were submerged by global warming effects. This was indisputably established by Jadavpur University researchers.

Somewhat later, Nayachar may share the same fate. Any industrial infrastructure shall necessitate substantial raising and consolidation of land by dumping colossal quantities of imported material. In fact, this process itself may expedite land collapse. Even then, would it be strong enough to bear major industrial infra-structural load ? Furthermore, such an island shall always remain susceptible to tidal waves and erosion.

Consequent on activating the proposed chemical hub, enormous quantities of hazardous wastes (including carcinogenic, mutagenic, and toxic to reproduction category) shall be generated with no safe dumping arrangements within the island. Obviously, these will be dumped into the sea, wreaking havoc on offshore marine life including fish and planktons. Most ominously, the seasonal offshore currents operating in the zone shall transport the pollutants along the coast into the Sundarban deltaic system and tidal currents will push them further into the Indo-Bangladesh river network.

The Chief Minister very recently reiterated from the ramparts of 'Fort Brigade Parade Ground' that Nayachar shall have the chemical hub. Even with the insensitivity of the State to valid scientific criticism, such a decision is simply mind boggling! Yet, there are alternatives available.

Having land fully government owned land, this island was handed over to the State Fisheries department about thirty years ago. A number of fishing cooperatives were formed and more than three hundred ponds were leased out to local fisher-folk and small entrepreneurs, commuting by ferry from Haldia. The island also has six hundred squatter families eking out at least a meagre livelihood as labourers in the ponds or catching fish. The socio-economic fallout of setting up a major industry cannot be ruled out, with inevitable problems of livelihood loss and rehabilitation of the displaced families.

The Jurong Consultants appointed by the Salim Group, has endorsed the Nayachar location, citing the examples of islands off Singapore! Whereas those islands form part of the Himalayan arc itself, Nayachar is an offshoot of eroded Himalayan material and transported over thousands of millennia to form one of the thickest alluvial basins on earth. Singapore has no such vulnerable alluvial basin to pollute ! Instead of wooing industrialists with questionable credentials, the State should organise and support fisheries to be developed and run by local dwellers. Obviously, with moderate investment, the losses shall be miniscule compared to industrial development even if the island is submerged after a few decades. This would be an optimum utilisation package for such a chunk of ephemeral land.

Andhra and other states are satisfying the huge demands of such a fish hungry State. The East Kolkata wetlands fisheries have been decimated by planned and relentless state sponsored urbanisation to pamper major realtors. Although miniscule, Nayachar may provide an example to emulate in such a warped development scenario. Even the state government admits that West Bengal has started facing shortfalls in food production; fish is certainly a major protein food item.

Nayachar is another decisive step in West Bengal's journey of no return into the path of devastating its invaluable natural resources. Despite concerted protests, it is providing the cradle for Tata-Nano miracle in prime farmlands of Singur and development of Rajarhat. Further plans to build highways, bridges and Kulpi inland port shall inexorably destroy theinvaluable and vestigial mangrove swamps of the Sundarabans that protect the state from the disastrous cyclones. The Teesta Project has started constructing a chain of dams and barrages in the tectonically active Himalayan foothills zone. Indications of a major disaster are already being perceived in a series of major landslides, along with water logging in the plains.

Yes, the Government is transforming the State into an environmental inferno, basically for the benefit of a miniscule affluent urban minority! Instead, by forsaking the globalisation highway, it could always choose the country roads of a resurgence that would include small agro-based industries. This would be sustainable and endow benefits on the overwhelming rural majority of the State.

Subrata Sinha
Formerly , DDG,Geological Survey of India
15 A/1 Khanpur Road, Kolkata 700047
Landlines 2481-8559 / 24110576

life in general: when will we (india) guarantee a life of dignity to our sisters and daughters?

It is not the first time we get to read about the heinous crime of rape and also not the first where the victims are little girls. But I am absolutely nauseated to read about the 15 February rape of a 12-year old girl by a Railway Protection Force constable and 6-7 other accomplices at the slum cluster near the Kanpur railway station (below, at the end of this post, is a complete news report on this incident; some other newsreports on it are here and here).

A majority of personnel working in the various police forces in India have become utterly corrupt and immoral. Their political masters are not any better. In the meanwhile, the majority of affluent and middle-class urban Indians are so steeped in their mindless consumeristic lifestyle that they won't even raise a murmur of protest against the horrific crimes taking place in their cities.

(THE DRAWING TO YOUR RIGHT HAS BEEN TAKEN FROM www.dudleythegorilla.com/images/sketches/kay.jpg)

I pray that the mother, father and siblings of that 12-year old little girl, who was killed after being raped, get justice. Such a crime is the rarest of rare and if the police authorities of the state of Uttar Pradesh and in the entire country as a whole have any shame then they should leave no stone unturned to provide justice to the tragically-devastated family of that little girl. To begin with they should release to the media the entire details of the culprits; right now the media reports don't even give the full name of the RPF constable.

We see such crimes happening in a scattered manner across the country with ominous frequency. We have also seen worse -- organised sexual violence against women of minorities in Gujarat in 2002, in Bombay and Surat in 1993 and in Delhi in 1984. What kind of India is this where we can't guarantee a life of dignity for our fellow sisters and daughters?

Here is one of the newsreport on the shocking incident:

http://timesofindia.indiatimes.com/Lucknow/Kanpur_rape_4_suspects_held/articleshow/2788642.cms
Kanpur rape: 4 suspects held
17 Feb 2008, 0136 hrs IST,Faiz Rahman Siddiqui, TNN

KANPUR: A 12-year-old girl was gangraped in front of seven younger siblings allegedly by eight people in Kanpur. The incident came to light only after the victim's mother, Sarita, who was away in Delhi to borrow money from her relatives to get her husband Rajesh Keshari released from the Naini Central Jail in Allahabad, returned late Friday night.

The post-mortem confirmed that the girl was raped and later killed. The police have handed over the body to her mother, a daily-wage labourer.

Kanpur SSP Anand Swaroop said four suspects, identified as RPF constable Vinay, contractor Amar Singh, Santosh Kesharwani alias Lambu and Pappu alias DV, have been taken into custody.

The girl's mother claimed the constable, Vinay, had recently arrested Rajesh, who used to work as a vendor at the Kanpur Central Railway Station and sent him to jail on fake charges. Sarita, who belongs to Sasaram in Bihar, said, "The accused had tried to outrage my daughter's modesty earlier too. When I objected, RPF constable Vinay and other accomplices threatened me with dire consequences."

life in general: 3 little girls & the fruit tree!

Yesterday, Sunday the 27th January of 2008, I had what I would count as among my most happy moments in this lifetime.

It was afternoon time -- around 4 pm. I had just left my Dad's home at Shastri Nagar, Andheri West (i go visit my dad at least once a week, and stay overnight; this time, i had stayed the saturday night and on sunday afternoon left to head to my home in kandivli that is 13 kms away from my dad's home).

I walked to the main road outside of Shastri Nagar complex to catch a public bus or an autorickshaw. I noticed there was a key maker on the roadside (a key maker is a guy who has a small box with different sizes of un-cut keys from which he can cut new keys as per your requirements). I wanted to make two duplicates of my home key. I gave it to him. He told me it will take 10-15 minutes.

Now, marked the beginning of those happiest moments. I saw three little girls, aged 8-11 years. This roadside had a few trees. Right where I was waiting was a tree and this tree had small light green-coloured fruits (it was not amla/gooseberry) and some of them had fallen down.

These girls, who came from families of pavement dwellers staying a km down the road, were picking those very few fruit droppings. One of them decided to throw stones up at the tree branches to make fruits fall. Since she was small her throws were very weak and did not even reach the higher tree branches.

I was watching all this unfold in front of me and I decided to step in. I spoke with the girls and told them that I will help them in throwing the stones and hoping for fruits to fall. They collected some small stones (there is no dearth of pebbles and stones on the roadsides here) and one by one were giving it to me. I threw a stone up at the tree branches, threw another, and lo and behold! About 5-6 fruits in The fruits started tumbling down with every second throw of mine! The girls were delighted and collected the fallen fruits. I tell you, my friends, watching their delighted faces was what made those moments among the most happy in my life!

As this tree was on the roadside, some of the many fruits falling down were spilling on to the road where traffic was passing by. The girls, without taking care, would dart after every falling fruit. I had to be firm with them to not rush to the road. I collected a few fruits that used to go on to the middle of the road, so that they wouldn't try to do it themselves and endanger themselves. I threw and threw stones and the girls collected around 50 small fruits. They were chatting with me all the time this was going on "Uncle this!" or "Uncle that!".

This fruit felling activity went on for 10-15 minutes. By then, the key maker had readied my duplicate keys. I paid him, but continued helping the girls for another 3-4 minutes. With a heavy heart I stopped afterwards. I told them I had to go. I felt sad I had to leave them and the fun were were having together.

The three girls, despite the tough conditions they were coming from, had a cheerful persona and that was inspirational. I did not help them as much as they did in making me see yet again the delightful nature of such children.

May our universe shower these little girls with the brightest blessings!

life in general: the self spying camera!

I am being spied upon! By my own mobile phone camera! At my workplace!

life in financial markets: of crashes & cronyists' ridiculous demands

So, the stock markets in India, Brazil, Hong Kong, Japan, Germany, UK took a steep fall on Monday (21 Jan) and Tuesday (22 Jan) this week. Here, in India, the tendency to blame everyone else other than yourself for any crash continues shamelessly.

What makes it worse is the attempt to wriggle out of monetary tightness through deceipt and governmental influence. I just saw a news report wherein India's finance minister P.Chidambaram was quoted as saying banks should be pragmatic and accommodate brokers in this week's stock market crash to prevent a chain reaction of defaults. Why should deposits-funded banks bail out private brokers? Brokers have made 30-40 times more money in the 5-year old bull run than the bank depositors.

Defaults and bankruptcies are an integral part of true capitalism and should be allowed to occur. Those who earn private profits should never be bailed out by public funds when they make private losses.

In the last many years I have been noticing such phoney champions of capitalism like Chidambaram. They have always appeared to me to be cronyists rather than true capitalists. Recently, the land-grabbing-SEZ champion, Kamal Nath, was also reported to be in favour of bailing out exporters on their losses due to a depreciating dollar.

We are living in a time when these cronyists leave no stone unturned to forcibly grab the lands of the farmers, villagers and poor people of India through laws like the SEZ and British-era Land Acquisition Act. They grant SEZ-like huge subsidies to companies and the companies' political masters.

Will the Indian media please stop blindly cheering these fake champions of development? Not that others like the Modis and the Left's Modis like Buddhadebs are any better. Throw a torchlight on them all. Bring out the fact in true capitalism private property is not usurped by government or others. So why are the private lands of farmers, villagers and others in rural India being usurped in the name of development projects and SEZs?

These are just some of the many many clinks in the supposedly economic powerhouse that our country is. Again, not that others like US, UK, France, Germany, China, Japan are any better. They have their own versions of cronyism going on.

life in journalism: how entities try to influence media editors

Not many readers of newspapers, magazines and media websites and viewers of television news channels might be aware of what transpires behind the scenes in the editors' cabins, reporters' bays and outside coffee houses/restaurants.

Among the many good or ugly things that happen behind the scenes, is one that I find to be a dirty machination (i say this based on my reasonably long experience -- on 1 January this year I completed 14 years in journalism, and majority of my stories have been on the Indian stock market).

It is the way in which chiefs of entities try to influence and pressurise the Editor-in-Chief if you have written something that exposes a negative deed or trait about those entities. The one entity that I suspect (you can never know for sure because your Editor does not tell you about it) has done this with regard to my stories is the stock market regulator, the Securities and Exchange Board of India (Sebi). When I was in Business Standard (1994-97) the then-chairman of Sebi made a phone call to T.N.Ninan, editor-in-chief of Business Standard, sometime in 1996. I was given to understand that the call was in connection with those stories of mine that took Sebi to task for its various failures, weaknesses and negligences.

The current Sebi chairman, M.Damodaran, is no better. He is the most cunning chairman Sebi has got it in its 17-year old history. He treats the media shabbily (for instance, he has never replied to queries sent to him for any story of mine that required Sebi's point of view to be reflected) and tries to bludgeon journalists as per his whims and fancies. I suspect he calls the Editors too directly to influence them to stop writers like me from writing stories that he considers being bad for Sebi's image.

It's a sorry state of affairs when a law-enforcer himself turns into a manipulator and tries to suppress the press from writing freely. And this is just one of many many clinks in India's claims of being a democratic economic powerhouse.

life in financial markets: (part 1) how companies manipulate government authorities

(part 2 of this post dated December 25, 2011, is over here --> http://natant.blogspot.com/2011/12/life-in-financial-markets-part-2-how.html)
 
Below is a classic example of how Bombay's construction companies and local government authorities including municipal corporation and state government departments get together to twist rules to benefit the builders and enable kickbacks to politicians, bureaucrats and government officers.

This case is about Hiranandani Builders.

Here it is:

Date: Sun, 30 Dec 2007 20:27:02 -0800 (PST)
From: medha@narmada.org
Reply-To: narmadaandolan@lists.riseup.net
Subject: [narmada_andolan] Land@40paise/acre in Mumbai for Builders!!!
To: narmadaandolan@lists.riseup.net

National Alliance of People's Movements
28, 'A' wing, 1st Floor, Haji Habib Building, Naigaon Cross Road
Dadar (East), Mumbai – 400014 E-mail: mumbainapm@gmail.com

Mumbai Update
31.12.07

- Land doled out for luxury & profits, violates law & deprives others.
- Slum dwellers deposit Rs 2000 with Chief Minister demanding lease of land as against builders paying 40 paise/acre, challenging unjustifiable low lease rent for builders.
- Hiranadani Gardens case needs an enquiry and action

Mumbai, the financial capital houses 60% of its population, contained on less than 15% of the total land-base of the city, in slums that are inhabitable. The proliferation of slums has always been considered as an activity of 'encroachment' over public land and never an act resultant of misplaced policies and priorities. The disparity and discrimination has been exposed time and again by all those who have been associated and committed to the rights of the underprivileged who are the hard working but exploited and discriminated.

The encroachments by the influential, operating as nexus which includes builders-politicians-bureaucrats are not only ignored, but are formalized and legalized. The most shocking in this regard is the case of Hiranandani Gardens, where land to the tune of 230 acres was handed over to private land holders/developers on an 80 year lease at the abysmal rate of 40 paise per acre. In order to make this possible, laws and rules were twisted, misquoted and violated to incur pecuniary benefits to the private parties but at the cost of public resources. On one hand the 10 by 10 ft houses of the poor are bull dozed under the pretext, these being encroachment on public lands, illegal possession of land holders over more than 30,000 acres of land has been formalized by the repeal of Urban Land Ceiling Act. The case of Hiranandani Gardens is one such case in this series of violations and manipulations engaged in by the State to benefit the few while ignoring the working class of Mumbai city.

In 1977, with the avowed purpose of meeting the large housing deficit, an Area Housing Scheme termed as Powai Housing Development Scheme, was formulated for the lands situated in the villages of Powai, Kopri and Tirandaz spread over 140 hectares of land. Out of these 70.85 acres was laid for residential which included housing for economic weaker sections as well as Lower & Middle Income Groups. The scheme was estimated to cost Rs. 181.75 lacs and was to be carried out by the then 'Bombay Metropolitan Regional Development Authority. The Authority confirmed that with inflows and outflows assessment, the required amount could be made available.

In June 1979 the said Scheme was approved by the state government through Urban Development Department. Thereafter BMRDA resolved that the "financial position of BMRDA does not enable to spend such a large amount for acquisition nor is it possible for Government to assure any regular flow of funds for such purposes". Therefore it was agreed upon to favor and approve the proposal of the present land owners to allow them to continue hold the land even though above the ceiling limit under the Urban Land Ceiling Act.

Thus a tripartite agreement was entered on 19th November, 1986 by the BMRDA, the State Government with Urban Development Department and 19 land holders with Varma and sharma families and Mr. N. Hiranandani as a power of attorney. The agreement provided for exemptions from the provisions of Urban Land Ceiling Act and handing over of the land on a lease of 80 years at the rate of 40 paise per acre. In return the leasers including the sub-lease were bound to undertake the development of the lands as per the provisions of the Powai Area Development Scheme. This was to consist of construction of flats/apartments 50% of which were not to exceed the size of 40 sq.meters and the rest 50% not exceeding 80 sq. meters. Further within a period of 10 years they were to develop the infrastructure including water mains, sewers, storm water drains, roads, open spaces for the schools, parks, service industry, hospitals etc and hand over to the Municipal Corporation of Mumbai. In addition flats/apartments equivalent to 15% of the FSI consumed by the land holders was to be handed over to State Government a t the rate of Rs 135 per sq. meter.

This agreement was entered into, with special provisions and exemptions for the land holders when there was a set of guidelines in existence, known as GR of 22 August 1986 which provided for the houses for the economically weaker section. Later on none less than Secretary, UDD had raised objections to the Scheme and mentioned that "UDD is opposed to entering into any more agreement other than in accordance with the provisions of GR of 22 August 1986". But these valid objections of Shri D.T Joseph were ignored and by passed.

But what is clear that as per the provisions of the agreement the lease as well as sub-lease were obliged to construct houses within the limits of 40 sq. meters to maximum of 80 sq. meters. It is a known fact that Hiranandani Gardens, as it stands today consists of 42 residential and 23 commercial buildings with no flat less than the size of 1800 sq. ft, which exceeds up to 4925 sq. ft as per the information available on their website and brochures issued by the same. Further the price quoted by them for a flat of the area 2125 sq. ft is in tune of 4 crores!

This gross violation of law has not just brought in huge profits but deprived the poor of their right to land (The dis-housed and the slum dwellers). On demanding that the Chief Minister and the Government of Maharashtra should also lease out land to the co – operatives of the poor similarly even if at a rent, 100 times higher, Mr Hiranadani has stated before a journalist that he is not the only one; there are others too who have benefited the same way! Awful are the decisions of the state which go as legitimate in the name of policy and planning. It is indeed manipulation of resources by a few which leave millions destitute encroachers!

NAPM will continue to fight for every citizen's right to housing and Life!

- Simpreet Singh, Medha Patkar