A report of the Comptroller and Auditor General of India (CAG) said that the Mumbai Metropolitan Region Development Authority (MMRDA) did not recover an additional lease premium of Rs 180 crore from Reliance Industries Limited (RIL) for delay in construction of a convention and exhibition centre and commercial complex in Bandra-Kurla Complex. The report, on the general and social sector for the year ended March 2015, said, “Audit observed that though RIL could not complete the construction even by the extended date of January 29, 2015; yet an additional lease premium of Rs180 crore for delay in construction up to one year was not recovered from RIL by MMRDA as of December 2015.” The report also said that government had failed to submit a reply till February 2016.The MMRDA had invited Requests for Proposal (RFP) in November 2005 for the lease of a 75,000-sq.m. plot in Bandra-Kurla Complex (BKC) for development, operation and maintenance of a Convention and Exhibition Centre (CEC) and Commercial Complex (CC).Of the five offers received, the rates offered by RIL for the CC component was the highest. The MMRDA executed a lease deed in September 2006 with RIL for 80 years on payment of a lease premium of Rs1,104 crore. Subsequently, in March 2007, on the request of RIL, MMRDA allotted an additional BUA of 72,500 sqm for both CEC (41,000 sq.m.) and CC (31,500 sq.m.) at the weighted average rate of Rs 96,000 per sqm of the original allotment, totaling Rs. 696 crore. As per lease deed construction of CEC and CC was to be completed by RIL within a period of four years. Due to a pending court matter, MMRDA extended the construction period from August 31, 2010 to January 29, 2015.
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