The demand, according to FONRWA members, is based on this year’s CAG report submitted in August. The report observed several malpractices by the NTBCL, which holds the concessionaire agreement for the flyway.
The Federation of Noida RWAs (FONRWA) has written to Alok Tondon, CEO of Noida Authority, this week, requesting termination of the concessionaire agreement with NTBCL for the DND flyway. It also asked for the flyway to be taken over by the authority.
The demand, according to FONRWA members, is based on this year’s CAG report submitted in August.
Explaining the basis of the demand, FONRWA president NP Singh said, “We received the copy of the CAG report, which stated that the total cost of the DND flyway has been recovered by the NTBCL to a large extent. Only a small amount of Rs 15.18 crore remained to be recovered. The report also said that for such an amount or future recurring costs/expenses incurred by the NTBCL, options of revenue generation from advertising on the DND flyway and utilisation of surplus land leased to the NTBCL should to be explored by the government/Noida Authority."
Pressing further, Singh said the report also observed several malpractices followed by the NTBCL, including inflating the cost of the project and unjustifiable heavy overhead expenses by application of excessive rate of return.
The concessionaire agreement, meant for perpetuity, allows NTBCL several unfair advantages. It allows NTBCL to operate under the existing terms and condition with remote possibility of recovery of the total cost of project during the entire life span of the bridge of 100 years; it allows for unjustified high rate of returns provided in the agreement; selection of concessionaire without competitive bidding; unjustifiable returns before commissioning of the project; and very high pre-operative expenses.
"We also want the CEO to know that since NTBCL has been directed by Allahabad High Court and (upheld by the Supreme Court) not to levy any user fee/toll charges for use of DND flyway from the commuters and that the CAG has also refuted their claim of total cost of project having not been recovered, it is high time that the Concessionaire Agreement executed between Noida Authority, ILFS and NTBCL be terminated forthwith and maintenance and proper functioning of DND flyway be taken over by Noida Authority itself," Singh said.
The RWA federation, therefore, urged the CEO to issue necessary directives to initiate the process for termination of the Concessionaire Agreement. It has been engaged in a long legal fight to ensure a toll-free DND. A PIL filed by FONRWA in November 2012 in the Allahabad High Court led to issuance of a directive to the NTBCL towards a toll-free DND.
Subsequently, in response to the SLP filed by NTBCL against the said order, the Supreme Court upheld the Allahabad High Court order, and further directed CAG to verify the claims of NTBCL.
The CAG, which conducted a detailed study into the affairs of NTBCL, observed several malpractices and submitted its sealed report on March 22, 2017, to the Supreme Court.
The report, following the apex court’s orders, was made available to all concerned parties — NTBCL, FONRWA, Noida Authority and ILFS.
