The restaurant had violated FSI amounting to 7,000 square feet, including the basement. Although the Bombay High Court had ordered the demolition of the encroached structures last year, the BMC has failed to act upon it.

``The restaurant has the blessings of none other than CM Manohar Joshi. The excuse offered is that discussions are being held in Mantralaya. It seems Mantralaya is more powerful that the courts,'' alleged SP corporator Ramesh Joshi at the general body meeting.

He added that the state government had gone ahead and ``mischievously'' regularised 3,000 square feet under the pretext that the hotel was a heritage structure, minus clearance from the Heritage Committee. ``The corporation is dragging its feet over the issue of demolition of even the remaining4,000 sq feet encroachment. Why run after small fry when powerful violators are sitting in positions of decision-making?'' charged Joshi.

The issue came up after a debate on a notice of motion raised by Congress corporator Ravindra Pawar, who highlighted the plight of residents of Shere Punjab Society, Andheri, where residents were reeling under a dearth of facilities. Since the builder and developer had indulged in FSI violations, the BMC had denied the residents their rights, Pawar stated. He added that the CM had constituted a committee headed by guardian minister for suburbs, Prakash Mehta. None of the suggestions made in the committee's report, submitted a year later, had been implemented, he added.

Replying to the motion, Shiv Sena's Digambar Kandarkar, in charge of the civic improvements and properties portfolio, stated: ``Tax payers are deprived of their rightful facilities, and at the same time, non-tax paying slum-dwellers are enjoying facilities free of cost.'' On China Garden, he claimed thathe would call for the file and initiate action after a detailed study.

The CM was also pulled up by Congress corporator K A Bastiwala on the issue of beautification of Veer Savarkar Road, opposite Siddhivinayak temple. The BMC spent Rs 52 lakh to beautify a portion of the road, an amount which overshot its estimate of Rs 37 lakh. This portion is opposite Kohinoor Hotel, owned by the CM. Earlier, Chintamani Jewellers had agreed to bear the expenses of the beautification, but inexplicably withdrew. The BMC then approached the state government, which readily sanctioned the amount.