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Govt has to recover more than Rs.65 crore from the builders

As per the recommendation of Justice K Balakrishnan Nair Committee, constituted by the Supreme Court to oversee the compensation distribution, the state government distributed Rs.62 crore as interim compensation to 248 families.

The ‘dust’ of implosion has not settled down even after a year as procedures like recovering the amount from builders for the loss incurred by the owners and the government continue to lag.

As per the recommendation of Justice K Balakrishnan Nair Committee, constituted by the Supreme Court to oversee the compensation distribution, the state government distributed Rs.62 crore as interim compensation to 248 families.

The government had also allotted Rs.2.63 crore to Maradu municipality for implosion alone. A total of Rs.3.74 crore was spent by the government for the demolition. As a result, the government has to recover more than Rs.65 crore from the builders. Meanwhile, the salary of the three-member committee and its staff is also met by the government.

The committee had, in September 2020, reimbursed Rs.69 lakh, paid by the builders, to the government.

However, the state government will have to recoup the expenditure from ‘persons who were responsible for giving nod to buildings violating environmental laws’. But the builders, except for two, are indifferent towards the apex court order. Jain Housing and Constructions Ltd and Golden Kayaloram remitted Rs.2 crore and Rs.2.89 crore, respectively. But Holy Faith Builders and Developers Pvt Ltd and Alfa Ventuers Pvt Ltd have failed to remit even a single penny. Meanwhile, the assets of the builders were frozen following the direction of the apex court last year.

The committee had asked the builders to submit fresh proposals for repaying the owners and the government. “Only Jain Housing and Construction Ltd has submitted a proposal containing details of their properties in Ernakulam. They requested to lift freezing on their assets to raise money,” said a source.

The SC is expected to hear the case in the third week of January.

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