While the civic budget for the year 1999-2000 has made a meagre provision of Rs. 5.5 crore for land acquisition for various purposes in the entire city, the acquisition of these prime two plots will alone need Rs six crore. The civic officials are worried over the fact the budgetary provision of Rs. 5.5 crore has already been exhausted within first six months of the current financial year.

The development plan of the city has reserved a plot, admeasuring 12,813 square metre at survey no 61 near Navsahyadri Society in Karvenagar area for garden and road while a plot where Velankar High School in Narayan Peth is located is reserved for high school. Official sources said the PMC initiated the procedure of acquiring these two plots in November 1997 and was required to complete it within two years as per the provisions of Maharashtra Regional Town Planning Act (MRTP).

The land owner of Hingane plot had sent a purchase order to the PMC in 1996 while the civic administration took action in 1997. The PMC, after completing all the procedure sent the proposal to State Government for its approval. The sources said the PMC will have to pay Rs. 2.47 crore to the Hingane land owner by the end of November this month. Similarly the land owner in Narayan Peth had also sent purchase order to the PMC in 1997. The PMC will have to pay a compensation of Rs 2.47 crore for the acquisition of the plot in Narayan Peth.

The sources said the PMC initiated the procedure of acquiring both the plots simultaneously and both the proposals were forwarded to the State Government. The officials fear that as per the provisions of MRTP Act the rights of both the land owners would remain unaffected if the PMC did not pay the award by the end of November.

The civic officials are seriously considering options like offering transfer of development rights (TDR) to the land owner or making the budgetary provision by transferring the required amount from one head to another. The officials point out that standing committee had already accepted their demand for Rs three crore but the issue was pending with general body for the final approval. The administration will have to make another proposal of Rs three crore if it wants to acquire another plot as well.