Ambani versus Ambani in HC over BKC land

MUMBAI: The Ambani brothers are at loggerheads once again. The Bombay High Court on Monday admitted a petition filed by the Anil Ambani-led Reliance Communications & Infrastructure Ltd. (RCIL) challenging the State government’s “arbitrary and unjustified” move to grant  “concessions valued at Rs7000 crores” to Mukesh Ambani’s Reliance Industries Ltd (RIL) for the construction of a world-class convention and exhibition centre at the Bandra Kurla Complex.

In an interim order, Justice S Radhakrishnan and Justice Roshan Dalvi restrained RIL from utilising an additional built-up area of 31,500 square meters allotted to it by MMRDA for a commercial complex adjoining the convention centre. The matter has been listed for hearing on November 28.

RCIL counsel Srihari Aney alleged that MMRDA altered tender conditions in granting RIL extra built up area and FSI. In February 2006, RCIL lost out to RIL’ Rs1,104-core bid for constructing the convention centre on a 7.5 hectare plot at BKC.

The convention centre complete with a 2000-seat auditorium with state-of-the-art audio-visual equipment was to be constructed on the lines of one of those in New York.

RCIL has alleged that tender conditions limiting the project’s built up area to 1,15,000 square meters were subsequently relaxed by the MMRDA to benefit RIL.

According to the petition, in February 2007, RIL wrote to Chief Minister Vilasrao Deshmukh, who is the chairman of MMRDA, requesting grant of additional FSI to achieve “architectural benchmarks” for the world-class convention centre.  

In March, MMRDA granted the request and allotted a further 72,500 square meters of built up area — 41,000 square meters for the convention centre and 31,500 square meters for the commercial complex.

MMRDA counsel, Advocate General Ravi Kadam and additional government pleader GW Mattos, denied the charges of largesse being granted and contended that MMRDA had been able to recover additional money to the tune of Rs696 crore, by dividing the extra built up area it had granted RIL for use in the convention centre and commercial complex.

Kadam also pointed out that since 1995 it had invited five bids for constructing the convention centre, but met with little success.

RCIL has pleaded that the allotment to RIL be quashed and that MMRDA be directed to call for fresh bids for the project.