Reliance owes a whopping Rs 1,576 crore to Mumbai firm

A total of over Rs 1,641 crore of premium is pending against five lease holders of MMRDA

Mukesh Ambani-owned Reliance Industries Limited is the biggest defaulter of Mumbai Metropolitan Region Development Authority (MMRDA) with dues of over Rs 1,576 crore (Rs 15.76 billion) against it, shows a Right to Information response.

A total of over Rs 1,641 crore (Rs 16.41 billion) of premium is pending against five lease holders of MMRDA, who were given extensions to complete construction of projects on the plots allotted to them, the MMRDA said in a reply to an RTI application filed by Mumbai-based activist Anil Galgali.

Out of these pending premiums, Reliance Industries alone owes over Rs 1,576 crore for two plots--G/C-64 and G/C-66.

The RIL reacted saying that court stay and regulatory clearances had delayed the construction. The matter is before an MMRDA committee from which a final decision is awaited, an RIL spokesperson said.

The dues towards first plot, G/C-64, which is yet to be completed with six-year extension already given, amounts to over Rs 1,187 crore (Rs 11.87 billion) while a sum of over Rs 389 crore is pending for G/C-66 plot for a four-year  extension on which the construction has been completed recently.

The RIL has paid over Rs 400,000 as premium against another plot G/RG -1A.

The response says over Rs 2,437 crore (Rs 24.37 billion) got accrued as premium against 29 lease holders for extensions out of which Rs 796 crore (Rs 7.96 billion) has been realised so far.

While the dues against government organisations are over Rs 12.5 crore (Rs 125 million), private sector owes over Rs 1628.6 crore (Rs 16.29 billion) and public sector organisations have a negative balance of Rs 85 lakh (MMRDA has to return).

Besides Reliance Industries Limited, other private sector organisations against whom dues are pending include Naman Hotels Private Limited with over Rs 23 crore (Rs 230 million), Indian Newspaper Society with over Rs 28 crore (Rs 280 million).

The government organisations having dues include Commissioner of Income Tax with Rs 5.30 crore and Maharashtra Maritime Board with dues of over Rs 7.21 crore.

The RIL spokesperson said,"MMRDA had recognised the force majeure with regards to Plot Number C/64, as there was a court stay on construction between October 2007 and March 2012. The MMRDA in the last authority meeting decided to appoint a committee and we are awaiting further communication from MMRDA on the same."

Photograph: Amit Dave/Reuters