Mumbai, Dec 11 (TOI): Three communications from the state government over a period of 10 years to Associated Journals Ltd, which used to own the National Herald, show how the company benefited from government largesse and got away without paying the bulk of the Rs 3.26 crore for the land it occupies in Bandra.

In 2010, when Associated Journals sent a demand draft of Rs 31.77 lakh to the suburban collector as part payment for the Bandra plot allotted to it, the draft was returned. In the accompanying letter the collector's office said that through two memorandums issued in 2001 and 2005, the state government had decided to charge only occupancy price for the plot. An order to this effect was issued by the collector's office in 2006. It also said that the occupancy price of Rs 98.17 lakh had already been paid and so the draft was being returned.

Back in 2001 the suburban collector's office in a report mentioned that the organization owed the government Rs 3.76 crore as payment for occupancy and interest for delay in payment. Ashok Chavan was the revenue minister at the time.

Now the state Congress president, Chavan said: "There is no illegality .The land was allotted as per the law to Associated Journals Ltd for running its newspaper and allied activities.According to a govenrment resolution, a portion of the land is allowed to be used commercially , like the YB Chavan Centre does. In any case the building is still under construction and has not been used for any purpose." On the question of having excused Associated Journals from paying the amount, Chavan said: "I was state revenue minister many years ago. I cannot immediately recall decisions taken at the time without examining the papers."

Associated Journals was allotted a 34,000 sq ft plot reserved for "backward class hostel" and abutting the Western Express Highway in Bandra (east) in 1983.

The plot was allotted for a newspaper office, a Nehru memorial library and a research centre. Thirty years after the initial lease expired, only a four-storey under-construction building stands on the site.

It was in 2013, towards the end of the lease, that the BMC sanctioned an 11-storey building. An NOC was obtained from the Airports Authority of India only in 2014 as the plot is close to the airport.

Raising the issue in the legislative assembly on Thursday , BJP city unit president Ashish Shelar demanded that the state government take back the land since the construction that was on was for commercial purposes.