Jain began bull-dozing the MHADA top echelons from August last year and ran into several spats with bureaucrats. The latest one claimed Subodh Kumar, who was unceremoniously transferred from his post of vice-president and chief executive officer last week. In a confidential letter to housing secretary Govind Swarup, written before he handed over charge, Kumar has detailed the minister's insistence on paying M/s Shirke at a higher rate than negotiated in the contract and explained how this would mean ``an undue enrichment of a private contractor at the expense of MHADA''.

Backed by earliergovernment orders and notes, the letter is also marked to Chief Secretary P Subrahmanyam because the matter is important ``with serious financial implications''. A copy was sent to MHADA chief engineer ``With a request to bring it to the notice of the new CEO Gorakh Megh.'' Jain got rid of Kumar, but will find it very difficult to justify his orders now that the facts of the case are recorded. The letter is expected to be discussed at the MHADA meeting tomorrow.

The set of documents, made available to The Indian Express, reveal how Jain insisted on paying M/s Shirke at the rate of Rs 750 per square foot of built-up area though the MHADA contract with the company pegged it at Rs 700 with Rs 50 per square foot as an additional incentive for timely completion of the Rs 250 crore project. The first phase of tenements is expected to be ready only in June this year.

However, as early as August last year, Kumar's ;letter states, Jain wrote to MHADA ``instructing that M/s Shirke be paid at Rs 750 per squarefoot.'' The then VP & CEO, Swadheen Kshatriya, wrote back to the government some weeks later that the minister's letter had cut a totally different picture from the contract. Subsequently, MHADA received government orders last month to pay M/s Shirke as per minister's instructions. A ministerial letter had been turned into a government order while simultaneously Kshatriya was eased out and replaced by Kumar.

Forced to consider the government order, MHADA administration observed that ``There was no basis to change contract conditions about rates.'' the letter goes on to say that ``this would mean an extra burden on MHADA and a undue enrichment of the contractor''. The difference of Rs 50 per square foot is estimated to be nearly Rs 15 to 17 crore at this stage. Some officials termed this as an unwarranted loss to MHADA and squandering of public funds. However, the resolution to pay at the rate of Rs 750 per square foot was put up at last Monday's meeting and voted 2:1 with the housing secretary and MHADApresident voting in favour. Kumar opposed it and was transferred the next day.

If the government takes note of Kumar's letter, it could still issue an order to suspend that resolution and restore public confidence that MHADA funds are not the private domain of a minister to disburse as he pleases. Else, Jain will have his way in giving a largesse to M/s Shirke for reasons best known to him alone.