SCHEDULE

Case No. TAMP/33/2002-JNPT

The Jawaharial Nehru Port Trust

Applicant

Ft P

(Passed on this 8th day of April 2002)

This case relates to a proposal from the Jawaharial Nehru Port Trust (JNPT)

for fixation of minimum reserve price for allotment of open space in the Hawkers Zone In the

JNPT premises.

The JNPT has made the following points In its proposal:

(i).

The JNPT has decided to develop a Hawkers Zone in the JNPT and allot 200

nos. of plots to Project Affected Persons (PAPs) on licence basis for a period

of 10 years.

(il).

The port will give necessary infrastructure for water supply, drainage and

electricity and also develop the plot including land filling, soling, pitching, etc.

(ill).

A Committee consisting of Port Officers was set up for fixing the Minimum

Reserve Price (MRP), It was also decided by the Board of Trustees that the

allotment would be made to Project Affected Persons (PAPs) in view of the

commitment of the Port towards the PAPs, at 40% of the MRP so arrived at by

the Committee.

(iv).

The Committee has examined the issues of fixation of MRP for the plots by

taking into account 3 scenario available, i.e., land cost as per JNPT notified

tariff, CIDCO Rate, and Government of Maharashtra rate. The elements of

civil and electrical capital and maintenance costs have been added to the land

cost and the final MRP has been arrived at on the basis of the average of the

rates of the three scenarios. The Committee has recommended the MRP as -

(a)

Rs. 15,000/- for a plot of 4.5 sq. mtr.; and,

(b)

Rs.32,500/- for a plot of 10 sq. mtr.

These recommendations are after taking into account 40% of the rate arrived

at.

(v).

The proposal to fix MRP at the rates recommended by the Committee were

placed before the Board of Trustees in Its meeting held on 22 February 2002

and the Board approved the proposal.

;

In accordance with the procedure prescribed, a copy of the proposal of the

JNPT was forwarded to the Bombay Chamber of Commerce and Industry and the Indian

Merchant Chamber for comments by 12 April 2002. The JNPT was also requested to furnish

name and address of the concerned representative body of-land users. On behalf of this

Authority, the JNPT Invited representatives of the PAPs to the joint hearing.

•

A joint hearing In this case was held on 5 April 2002 at JNPT Office In Mumbal.

At the joint hearing, the following submissions were made:

The Jawaharial Nehru Port Trust (JNPT)

(I).

We are not charging for development costs. Even on the other costs, a 60%

concession is proposed.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART III—SEC. 4]

(ii).

It will be difficult to Identify 'poor PAPs'. Allotment will be with reference to

'tenders' received.

(ill).

It will be difficult for us to Identify 'benami' cases.

Representatives of the PAPs

(i).

This is a good proposal. The Labour Trustee has spoken about and endorsed

this in the Board Meeting.

(ii).

Allotment must be given only to poor PAPs.

(Hi).

The rate is high; may be reduced.

(iv).

(a).

Lands occupied by non-PAPs must be reclaimed.

(b).

In this case also, 'benami' deals must be prevented.

(v).

There are PAPs who have no certificates. They will not be entitled. What will

happen to them?

(vi).

There shall not be provision for sub-letting or transfer. Fresh tenders may be

Invited.

[The JNPT says 'transfer is possible only to PAPs; and, with prior approval of

the JNPT¹]

(vii).

First regularise cases of those who are occupying plots since 1985. (91 such

cases are there.)

(vlli).

Reduce the rate from Rs.15,000/- to Rs.10,000/- and Rs.32,500/- to

Rs.20,000/-.

(ix).

Lease rent should be a nominal Re.1/- per shop per month.

(x).

Landless PAPs - how will they get certificates now?

They must also be

entitled.

(xi).

The JNPT must construct the shops. If allottees themselves have to construct,

then reduce the rates as requested by us.

With reference to the totality of information collected during the processing of

this case, the following position emerges:

(i).

The proposal is for an arrangement to benefit some project-affected persons

(PAPs). This is in line with the policy adopted by the JNPT right from its

inception to give preference to PAPs in providing employment, facilities, etc.

(ii).

Based on guidelines developed on the subject, several PAPs were identified

for purposes of employment in the JNPT.

There can, therefore, be an

argument that how can the problems of PAPs continue to be reckoned with

Indefinitely. It has to be recognised in this context that rehabilitation of PAPs is

a difficult, highly complicated, and long-drawn out matter. The time factor

cannot, therefore, be of much consequence here. In any case, as it happens,

the problem of the hawkers has been a live one for over 10 yelars now.

(iii).

The basic proposal is to allot on lease plots of fully developed land to PAPs for

setting up shops/bunks, for this purpose, the JNPT has Identified land in a

particular zone keeping in mind the relevant locational factors.

(Iv).

As can be seen from the details given in paragraph 2 above, the proposal has

been formulated after detailed consultations with all concerned. The Board of

Trustees has also given its approval. And, the JNPT has certified that it has

gone strictly by the Government Guidelines relating to lease of port properties.

It has, however, to be recognised in this context that the JNPT has slightly

veered away from the Government Guidelines in the computation of the rate

for payment of upfront land premium. The Government Guidelines refer In this

context to the rate obtained from the Government of Maharashtra whereas the

JNPT has gone on the basis of an average of the rates of the JNPT, CIDCO,

and the Government of Maharashtra. The effect of this deviation is that the

rate finally computed by the JNPT is about 60% of the rate in the JNPT Scale

of Rates and about 80% of the Maharashtra Government rate. Even on this

lower rate, a further concession of 60% has been proposed; and, for fully

developed lands at that. Since the beneficiaries are going to be the PAPs, this

Authority is inclined to adopt a liberal view in this case.

It is relevant here to point out that, at the joint hearing, the representatives of

the PAPs had pleaded for a reduction even of the rates proposed by the JNPT.

In view of the fact that, as explained above, the JNPT has already built in

several concessions In the computation, notwithstanding the fact that (unlike

claimed by the JNPT at the joint hearing) development costs have been

included in the computation of the rate, it Is not necessary to give further

consideration in this regard.

(v).

At the joint hearing, various issues like identification of PAPs, issue of

certificates to them, choice of appropriate beneficiaries, preference to 'poor

PAPs', etc., came up. In this context, it Is to be noted that this Authority has

only to consider the proposal for determination of rates for allotment of these

plots; It is not relevant for it to involve in other administrative and procedural

issues.

On this understanding, the representations on these issues are

ignored. This Authority is satisfied with the assurance given by the JNPT that

plots will be allotted only to PAPs; and, that final choice of beneficiaries of

equally placed PAPs will be made on the basis of lots to be drawn by their own

representatives.

(vi).

Another related Issue that came up at the joint hearing was about sub-letting

and transfers. Everyone Is agreed that there shall be no sub-letting at all. This

recommendation is accepted for prescription as a conditionality. This Authority

itself has been stipulating this condition while dealing with lease matters in

other major ports.

As regards transfers, the JNPT is of the view that transfers shall be permissible

between PAPs and with prior approval of the port trust. This Authority is of the

view that except in cases of inheritance, it does not appear necessary (or,

even, desirable) to provide for transfers. A better option is to prescribe that, if

a lessee is not Interested In continuing with the lease, the plot concerned shall

revert to the common pool for re-allotment on the basis of fresh applications.

(vii).

At the joint hearing, a demand was voiced that the 91 PAPs who have for

many years been hawking on these lands should be given preference and

allotted plots without entering into any selection process. As stated earlier, it is

not advisable for this Authority at this stage to get into such contentious Issues

disregarding the specific selection process formulated by the JNPT in

consultation with all concerned.

Significantly, sometime ago, the JNPT itself had worked on such a proposition

only to meet with stiff resistance from various groups opposed to one another.

After detailed deliberations it was then decided that the better course would be

to subject all Interested PAPs to a common selection process. It is on this

premise that the present proposal has been formulated.

THE GAZETTE OF INDIA: EXTRAORDINARY

IPARTIII—SEC. 4]

(viii).

At the joint hearing, some apprehensions were voiced about 'benami'

transactions. The JNPT has contended that it will be difficult at this stage to

comprehend such eventualities and provide safeguards to prevent such

occurrences. The JNPT has advised the PAP groups themselves to be vigilant

on this score to prevent such exploitative tendencies.

This Authority also

accepts this position and leaves the problem to be addressed separately if and

when It emerges in a major way. Incidentally, this can also be classed as an

administrative issue to be tackled by the JNPT itself,

(ix).

Another demand voiced was about construction of the shops/bunks. The PAP

representatives have asked for the port trust to construct the structures if the

rate is fixed at the level(s) proposed; or, If the allottees themselves have to

construct the structures, then, the rate(s) shall be reduced. The JNPT has

maintained that the rate proposed is already highly concessional leaving no

scope for further reductions; and, as regards construction, the port trust will

only provide a common blue-print for the allottees to adopt while putting up the

Structures themselves. There is no reason why this Authority cannot accept

this stand of the port trust. In any case, the proposal for consideration is only

about fixation of rates for allotment of plots on lease.

(x).

The Government Guidelines on the subject, even as they provide for a one-

time upfront land premium payment, also refer to an annual lease rental of

Re.1/- per sq. mtr. Such repetitive annual payments will be necessary to re-

assert title to the property. This Authority, therefore, advises the JNPT to add

such a provision.

(xi).

It is noteworthy that the Government Guidelines In reference were issued in

February 2000 when this Authority Was very much in existence. For whatever

reason, the Government did not consult this Authority before issuing them.

Strictly speaking, therefore, this Authority is not bound to accept it. But, its

general approach has been to recognise such Government Guidelines until it

•has had time to formulate its own detailed Guidelines.

In line with this

approach, here, again, this Authority adopts a similar approach towards the

February 2000 Guidelines issued by the Government.

In the result, and for the reasons given above, a/id based on *a collective

application of mind, this Authority approves the JNPT proposal and prescribes the following

rates for allotment of open space to the PAPs in the Hawkers' Zone in the JNPT premises:

(A).

UPFRONT LEASE PREMIUM PAYMENT:

(a).

Rs.15,000/- for a plot of 4.5 sq. mtrs.

(b).

Rs.32,500/- for a plot of 10 sq. mtrs.

(B).

ANNUAL LEASE RENT

Re.1/- per sq. mtr. per annum subject to a 30% escalation in the rent after

every five years.

S. SATHYAM, Chairman

[No. ADVTnj/IV/143/2002/Exty.]

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