The Mantralaya Makeover

In the largest redevelopment deal Mumbai has ever seen, Indiabulls bagged the four-acre Mantralaya redevelopment project by offering Rs 1,376 crore. The company’s bagging of the project weeks before the election code of conduct comes into effect has set tongues wagging in the construction industry over the timing of the deal. The state government had set a reserve price of Rs 1,100 crore for the mammoth project, which, interestingly, had only two other bidders—IL&FS, in a joint venture with Akruti, which quoted Rs 1,308 crore and DB Realty which offered Rs 1,200 crore. IL&FS, which had earlier been left out of the bidding process on the grounds that its documents were submitted two minutes after the deadline, moved the Bombay high court on Thursday morning, and even tasted a brief victory when the court accepted its plea and directed its inclusion in the bidding process on merit. However, it was Indiabulls that won the bid. Gagan Banga, spokesperson for the group, said the Mantralaya venture was the most expensive project in the country. “At Rs 344.12 crore per acre, it is also the most expensive per acre deal in the country and probably Asia. This will allow us to build a world-class structure for the state —an iconic building of 7-star category which will surely change the skyline of Mumbai,’’ he declared. Some top developers in the city, under condition of anonymity, ‘alleged’ that the state government had not publicised the tender process adequately. “It is surprising that there were only three shortlisted bidders for such a huge contract when many more could have participated,” said one of them. Indiabulls has much to be happy about—the company will get a generous floor space index (FSI) of 4, and could end up getting as much as 44,000 square feet per acre in the free sale component. It plans to construct one high-end residential tower in the area where flats in the nearby NCPA apartment are reportedly being quoted at 80,000 to 85,000 per square foot. PWD minister Chhagan Bhujbal said the proposal was now before a committee headed by chief minister Ashok Chavan for approval. As part of the redevelopment—which has its share of critics—the main Mantralaya building, as well as the new administrative building opposite it, will be completely torn down, as will the 50 charming row bungalows opposite, which currently house judges and ministers. In place of the bungalows, Indiabulls plans to construct four clusters which will include apartments for judges and ministers as well as a new building for the state headquarters. “We will make sure this is the best building in the country and showcase it as such,’’ said Banga. Of the Rs 1,376 crore offered by Indiabulls, Rs 276 crore is for the corpus for upkeep and maintenance of the new buildings. The project is to be completed in three years’ time