Pune's 8A Lothian Road similar to Adarsh, says CAG

Complex

'Deal violated Cantonment property rules, broke original lease terms, went against the intent of a court direction'

Calling for a serious view to be taken on "transgressions" by local military authorities, the Comptroller and Auditor General (CAG), in its latest report, has compared the 8 A Lothian Road case in Pune Camp with the Adarsh scam.

"This is a case similar to Adarsh... demonstrating a pattern whereby persons holding fiduciary responsibility in the Ministry of Defence have betrayed it. The Ministry needs to view such transgressions by local military authorities seriously and take...action," the report says.

The Indian Express has been extensively reporting on Bungalow No 8A, Lothian Road on 0.96 acres in Pune Cantonment. The row relates to an 'out of court deal' struck with a private developer.

The report says the deal violated rules pertaining to Cantonment property, broke the original lease terms as also the intent of a court direction. The report also points out it compromised the interest of the Army.

The land was in 1946 leased to Merwanji Rustom Master and Baimai Rustom Master on renewable terms up to 90 years. The lease plan earmarked 56 per cent of the land for commercial purpose and 44 per cent for residential purpose.

The original lessees sold their rights to Kalpataru Builders in March 1988, who in August the same year sought PCB nod to construct 67 shops and a small residential apartment. PCB referred it to the Defence Estates Office (DEO) which struck down the proposal saying it involved commercial exploitation beyond what the original lease permitted. The DEO decision was seconded by the Director Defence Estates Southern Command, HQSC as well as Army HQ.

The builder moved the Bombay High Court, which dismissed the petition in September 2005, but gave an option to apply to the General Officer Commanding-in-Chief (GOC-in-C) for permission, but only as per the original lease plan, thereby retaining 44 per cent of the land for residential purposes (for the Army).

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