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6th floor, 'A' Wing, Janpath Bhawan,Janpath, New Delhi -110001Phones: 23739722/23717249/23355408Fax :23717250E-mail : cgewho@nic.in

11th May, 2011No.:A-lO7/1

MEMORANDUM

Minutes of combin of General Bod and XXX:XVI 46thmeetin of Governin O held on 26th A ril 2011 at 1700 hrs.Sub.

Combined XX(20th} meeting of General Body and XXXXVI( 46th} meeting ofGoverning Council of CGEWHO was held on 26th April, 2011 at 1700 hrs under the

Presidentship of Ms Kiran Dhingra, President, Governing Council, CGEWHO & Secretary,M/o Housing & Urban Poverty Alleviation in the CPWD Conference Room, Nirman Bhawan,

New Delhi. A copy of the Minutes of the meeting is enclosed.

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D'-C{Parveen Kr Wadhwa)../ \ Dy Director(Admn)

for Chief Executive Officer

To,

r- Ms Kiran Dhingra, President, Governing Council, CGEWHO & Secretary, Ministry of

Housing & Urban Poverty Alleviation, Nirman Bhawan, New Delhi.1

2) Smt Alka Sirohi, Secretary, Ministry of Personnel, Public Grievances & Pension, North

Block, New Delhi.

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Room No.142 B, Gate No.2, New Delhi.

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4) Sh N K Nampoothiry, Addl Secretary(Legislative), M/o Law & Justice, ShastriBhawan, Gate No.3, Room No.421, , A' Wing, New Delhi.

Sh S K Singh, Jt Secretary(H), Ministry of Housing & Urban Poverty Alleviation,

Nirman Bhawan, New Delhi.5)

Ms Sudha Krishnan, Jt Secretary & Financial Advisor, Ministry of Housing & Urban

Poverty Alleviation, NirmanBhawan, New Delhi.6)

7) Sh Rajeev Kapoor, Jt Secretary(AT&A), Ministry of Personnel, PO & Pension, RoomNo.193, Gate No.4, North Block, New Delhi.

Sh V P Baligar, CMD,HUDCO, India Habitat Centre, Lodhi Road, New Delhi.8)

Sh Sameer Mitra, Dy Chief(Projects), HUDCO, India Habitat Centre, Lodhi Road,

New Delhi.9)

Sh Suresh Pal, Director & Chief Welfare Officer, M/o Personnel & Training, Lok

Nayak Bhawan, R No.385, 3rd Floor, B Wing, Lodhi Road, New Delhi.10)

Sh S K Vyas, Member to the Staff Side, National Council(JCM), 13, Firozshah

Road, New Delhi.11)

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12) Col(Retd) Sunil Kumar, Chief Executive Officer, CGEWHO.

Sh KKN Kutty, Member, National Council of JCM(Staff Side), A-2,/95, Rajouri

Garden, New Delhi.13)

Sh R C Agarwal, Dy Director(Finance), CGEWHO.14)

~

MINUTES OF COMBINED XX(20)TH MEETING OF GENER

XXXXVI(46TH) MEETING OF GOVERNING COUNCIL HELD 2

A T 1700 HRS CHAIRED BY MS KIRAN DHINGRA. PRESIDENT. G

COUNCIL. CGEWHO & SECRETARY. M/O HOUSING & URB P

ALLEVIA TION.

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The following were present:

Presidenti) Ms Kiran Dhingra

SecretaryM/o Housing & Urban Poverty Alleviation

Memberii) Shri S.K. Singh

Joint Secretary (Housing)

M/o HUPA

Memberiii) Ms Sudha Krishnan

Joint Secretary & Financial Advisor

M/oHUPA

Memberiv) Sh Suresh Pal

Director & CWO

Representative of

Secretary, M/o Personnel, Public Grievances & Pensions

Col (Retd) Sunil Kumar

Chief Executive Officer, CGEWHO

Member Secretaryv)

vi) MemberK.K. Chauhan

Dy Chief (Projects), HUDCO

In ~Iace of

Sh V .P .Baligar, CMD, HUDCO

vii) MemberSh S.K. Vyas,

Member to the Staff Side

viii) Member-TreasurerSh R.C. Agarwal

Dy Director (Finance), CGEWHO

Item No.i To confirm minutes of the combined XIX Meetin!! of General Bodv and

XXXXIV Governin!! Council Meetin!! held on 15.7.2010 and

XXXXV(45th) Meetin!! of the Governin{! Council held on 24.11.2010.

The minutes of the combined XIX Meeting of General Body and XXXXIV

Meeting of Governing Council held on 15.7.2010 and XXXXVth meeting of the

Governing Council held on 24.11.2010 were reviewed. There being no comments from

the members the minutes were approved.

During the meeting, CEO briefed the Governing Council regarding action taken

report of Combined meeting of the General Body & Governing Council Meeting held on

24.3.09,07.12.09 and 06.1.10.

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Item No.ii) Presentation bv the CEO. CGEWHO includin{! DrO{!reSS of various

Schemes.

CEO, CGEWHO gave a detailed presentation to the Governing Council members

regarding present status of CGEWHO, progress of ongoing projects, increase in cost due

to escalation etc.. and the grievances of beneficiaries related to delay in handing over of

DUs. After due discussions and deliberations the following decisions were taken.

a) President, Governing Council expressed her concern that no periodic ActionTaken Report on the grievances is being received from CGEWHO as per the

directions in the 45th Governing Council Meeting and directed that a monthly

report of the grievances/ complaints received from the beneficiaries must be

submitted to President, Governing Council in a regular manner. Further, during

the discussions, Joint Secretary (Housing) advised that a consolidated report

comprising the detail of the grievances/complaints received in each project andthe reply given by the CGEWHO be prepared and submitted to Joint Secretary

(Housing).

b) Details explaining increase in announced cost of each ongoing project be

submitted to Joint Secretary (Housing), MHUP A.

c) Numbers of beneficiary participation as Member, Project Monitoring Committee

be increased from 02 to 05 for the projects where the Project Monitoring

Committees have not yet been formed.

d) During the discussions Joint Secretary (Housing) pointed out that being a turnkey

project the escalation should not be payable as Executive Committee has approved

the contract on rate per sqft basis. Accordin&ly, President, Governing Council

advised that CGEWHO to examine the tender document, price bids, contract

agreement and CGEWHO Rules related to escalation in ongoing projects and

confirm whether the escalation is payable to contractor or not and submit a note

on the issue through Joint Secretary (Housing), MHUPA.

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e) A detailed worksheet with analysis regarding month wise availability of fund in v.last two years has to be submitted to Joint Secretary (Housing), MHUPA. / ' ~

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f) President, Governing Council desired that CGEWHO should hire a TechnicalConsultant of repute for conducting Project Procedure/documentation audit

specifically with reference to the following documents in order to advice how to

amend the documents so that the CGEWHO could be in a position to control and

penalise cost escalations and delays on which currently it appeared to have little

control.

~i)

ii)

iii)

iv)

v)

vi)

Tender documents

Letter of Intent

Contract Agreement

Payment procedure for projects.

Escalation clauses in the contract/tender documents.

Penalty Clauses

President, Governing Council further advised that Joint Secretary (Finance) &

Financial Advisor, MHUP A may suggest Technical Consultant for the above

purpose after consultation from CPWD/DMRC. In case the same is not feasible

the Expression of Interest for Technical Consultants be advertised for the same

and put up for the approval of Technical Consultant to Executive Committee.

g) Regarding CGEWHO Housing Project at Greater Noida it was decided that for

receiving increased F AR and high density as compared to that permitted through

the lease deed documents, CGEWHO should itself progress this issue with follow

up through the visits of its officers and discussing the issue with officials of

Greater Noida Authorities, instead of leaving these critical issues to the architect.

The selection process of Architect Consultant should be progressed once the issue

of F AR and density has been finalized by Greater Noida Authorities.

Item No.iii) To approve appointment of Statutorv Auditor for CGEWHO for the

Eill!P~J Year 2010-11.

The issue regarding appointment of M/s Gaur & Associates, Chartered

Accountants as Statutory Auditor for CGEWHO for the financial year 2010-11 was

discussed in detail. After due discussions and deliberations, Governing Council agreed to

appoint M/s Gaur & Associates, Chartered Accountants, as Statutory Auditors of

CGEWHO for the year 2010-11 at a professional fee of Rs.65,000/= per annum plus

service tax, eligible for reappointment for a consecutive period of maximum three years

subject to satisfactory performance of the auditor .

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Item No.iv) To deliberate the Gu ct and decide further

course of action conseQUent to non-comoliance of MOU bv M/s

Capital Builders.

CEO briefed the members with regard to non-compliance of MOU by Mls Capital

Builders which was circulated as revised agenda details vide letter No.A-10711 dated

26.4.2011. Letter No.Nil dated 26.4.2011 ofMls Capital Builders was also circulated to

the members. The developer sought retention of the MOU on the promise to pay the

amount as per MOU. However, it appeared that this promise was hedged by certain

conditions. CEO said that this letter & offer as well as the options given in the agenda

3

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the hour,

subject to~':~

Accordingly, it was decided by the members present that the agenda item (iv) and agenda

item (v) will be put up again in the reconvened General Body/Governing CouncIl

meeting.

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iJI'.b May,2011No.:A-107/1

MEMORANDUM

Minutes of Rec2nvened combined XX(20th) meetin!! of General So

3r- Mav. 2011 at 1700 hrs.

Sub.

The Reconvened Combined XX(20th) meeting of General Body and XXXXVI( 46th)meeting of Governing Council of CGEWHO was held on 3rd May, 2011 at 1700 hrs under thePresidentship of Ms Kiran Dhingra, President, Governing Council, CGEWHO & Secretary,M/o Housing & Urban Poverty Alleviation in the CPWD Conference Room, Nirman Bhawan,New Delhi. A copy of the Minutes of the meeting is enclosed. I /-

~( .~~"tr,d (Parveen KrWadhwa)

\ .\ Dy Dtrector(Admn)

for Chief Executive Officer

I' I

To,""'""

Ms Kiran Dhingra, President, Governing Council, CGEWHO & Secretary, Ministry of

Housing & Urban Poverty Alleviation, Nimlan Bhawan, New Delhi.

2) Smt Alka Sirohi, Secretary, Ministry of Personnel, Public Grievances & Pension, North

Block, New Delhi.

3) Ms Vilasini Ramachandran, Addl. Secretary(Exp.), Ministry of Finance, North Block,

Room No.142 B, Gate No.2, New Delhi.

Contd...2!

Please vi~it us at www.cgewho.nic.in

,.2

Sh N K Nampoothiry, Addl Secretary(Legislative), M/o Law & Justice, ShastriBhawan. Gate No.3, Room No.421, , A' Wing, New Delhi.4)

~

Sh S K Singh, Jt Secretary(H), Ministry of Housing & Urban Poverty Alleviation,~irman Bhawan1 New Delhi.

5)

~Is Sudha Krishnan, Jt Secretary & Financial Advisor, Ministry of Housing & Urban

Poverty Alleviation, Ninnan Bhawan, New Delhi.6)

Sh Rajeev Kapoor, Jt Secretary(A T &A), Ministry of Personnel, PG & Pension, Room

No.193, Gate No.4, North Block, New Delhi.!)

Sh V p Baligar, CMD,HUDCO, India Habitat Centre, Lodhi Road, New Delhi.8)

Sh Sameer Mitra, Dy Chief(Projects), HUDCO, India Habitat Centre, Lodhi Road,New Delhi.

9)

Sh Suresh Pal, Director & Chief Welfare Officer, M/o Personnel & Training, LokNayak Bhawan, R No.385, 3rd Floor, B Wing, Lodhi Road, New Delhi.

10)

Sh S K Vyas, Member to the Staff Side, National Council(JCM), 13, Firozshah Road,

New Delhi.11)

Col(Retd) Sunil Kumar, Chief Executive Officer, CGEWHO.12)

Sh KKN Kutty, Member, National Council of JCM(Staff Side), A-2/95, RajouriGarden, New Delhi.

13)

Sh R C Agarwal, Dy Director(Finance), CGEWHO.14)

~

BODY AND X:XXXVI(46TH) MEETING OF GOVERNIN

03.05.2011 AT 1700 HRS CHAIRED BY MS KIRAN DHINGRA. PRES

POVERTY ALLEVIATIQN.

~

The following were present:

i) PresidentMs Kiran Dhingra

SecretaryM/o Housing & Urban Poverty Alleviation

Memberii) ShN.K. NampoothiryAddl Secretary (Legislative)M/o Law & Justice

iii) MemberShri S.K. SinghJ oint Secretary (Housing)M/o HUP A

Memberiv) Ms Sudha KrishnanJ oint Secretary & Financial AdvisorM/oHUPA

Col (Retd) Sunil KumarChief Executive Officer, CGEWHO

v) Member Secretary

Membervi) K.K. ChauhanDy Chief (Projects), HUDCO

In Qlace ofr

Sh V.P. Baligar, CMD, HUDCO

Member-Treasurervii) Sh R.C. AgarwalDyDirector (Finance), CGEWHO

To deliberate the Gur2aon (Ph-l11) housin2 Droiect and decide further

course of action conse uent to non-com liance of MOU b M/s Ca ital

Builders.

Item No.iv)

The CEO, CGEWHO recalled that the Gurgaon Project had been placed on the agenda

in the meeting of the Combined General Body and Governing Council on 26.4.11, but because

\

'.of the lateness of the hour, and in order to discuss the agenda item on the Gurgaon project ill

detail, President, Governing Council, had prorogued the sitting for the present date. The CEO

infonned the combined General Body & Governing Council that in the time being, since the£;

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previous sitting, the position had altered. Whereas on that day M/s Capital Builders had asked

submitted anfor an extension to the MOU with certain conditions, he had on 30.04.201

unconditional request dated 30.4.2011 for extension of the MOU alongwith pay orders

favouring CGEWHO. CEO briefed that the above payment W:asamounting to Rs.40.00 Cr

made in favour of CEO, CGEWHO as full and final payment with reference of MOO entered

between CGEWHO and Capital Builders on 22.09.2010. Considering the 10% payment of

Rs.4,75,52,2001= already remitted by MJs Capital Builders in accordance with the said MOU

and the Rs.4,48,20,OOO/= received by CGEWHO on account of encashment of Bank Guarantee

he noted that the aboveon account of non-compliance of MOU within stipulated time,

payment completed the obligations ofMls Capital Builders under the MOU, if the extension of

period of MOU is approved by this Council. The above payment was also inclusive of interest

CEO infom1ed the members that pay orders attached were all made onup to 02.05.2011

account of M/S J R Modi Associates Limited but M/s Capital Builders had also provided a

letter No.Nil dated 02.5.11 stating that M/s J R Modi Associates Limited is their financer.

CEO, CGEWHO said that therefore the agenda before the Governing Council had been

modified. The first options placed before the Governing Council now was whether to accept the

The otherpayment and extend the MOU from 17.3.2011 to 02.5.~011 or take other options.

options were as follows:

(1) The first option is CGEWHO mayopt for taking up the project at Gurgaon on the land

in question as a conventional project.

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without license in which either M/s Capital Builders may be permitted to participate in,~

the auction or they may be debarred from the auction.

(4) The fourth and last option is to renegotiate with M/s Capital Builders for entering into

another MOU.

He asked the Governing Council fora decision.

Joint Secretary & Financial Advisor, MHUPA wanted the CEO CGEWHO to place his

for all.

During the discussion that ensued Addl Secretary (Law) clarified that as long as we

Members recalled that due approval from Executive Committeedown, becomes operational.

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M/s Capital Builders. The Council felt that if as per first option the project were taken up for

construction by CGEWHO, it would have to pay EDC & mc charges of approx. Rs.40.00 Cr.~~

which is not feasible for CGEWHO without taking loan in view of its present financial

condition.

It was deliberated that at this stage both the parties i.e. CGEWHO and M/s Capital

Builders were in a deadlock, and M/s Capital Builders might create legal hurdles in progressing

any of the first to third options described above, and CGEWHO funds would continue to

remain blocked. Council members were of the view that if the CGEWHO were to go for an

auction through tender process or othe1Wise, then the contractor in all eventualities may knoc-

the door of Court and seek restrain order against CGEWHO of disposing off the land or taking

up the construction on its own. This would result in to litigation which will further dent the

objective of the process which was approved last year when the decision to sign MOU was

The image of thetaken to find a resolution and get out of the project with least possible loss.

organization was also adversely affected due to the diversion of the funds from ongoing

projects to this project and the consequent grievance of allottees. Council was of the view that

the litigation and its consequential effect on financial condition of CGEWHO would be

indetenninable and not in the interest of the organization.

Council took note of the fact that CGE~O had a very meager corpus and was

basically working on self-financing basis for its housing schemes. Under the system for

execution of the projects, the funds had to be collected from the beneficiaries of announced

schemes. Unfortunately the said project could not be announced. Funds were diverted from

ongoing projects for the Gurgaon land, and could not be recouped because the Gurgaon

Due to non-recovery of the funds blocked up in theHousing Scheme could not be announced.

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Gurgaon project till date, the progress of ongoing projects had been and was being affected

adversely. ~~

It was also discussed that if CGEWHO would not take back the fund blocked in the

project, the financial condition of the organization would worsen and ongoing projects from

where the funds have been utilized for land investment get delayed further .

Council felt that between the two situations i.e. accepting the payment given by

contractor as per MOU by extending the MOU to 02.05.2011 and adhering to the commitments

therein, now that the moneys had been secured, and rejecting the pay orders and exercising

another option, CGEWHO would definitely be better off accepting the payment, using the

money to redeem its position in ongoing projects and getting out of the prospect of litigation

and losses on the Gurgaon project.

It was agreed unanimously that it was not worthwhile to enter into negotiation as per

option 4 as the issue has already been settled through a negotiated settlement earlier and the

interest has been paid by M/s Capital Builders, for the period which the contractor has delayed

in making the payment. It was agreed that the best and viable option before the CGEWHO was

to accept the payment submitted by M/s Capital Builders as per the terms and conditions of

MOU already entered with them.

Governing Council unanimously approved the payment of R~ Cr already

submitted by M/s Capital Builders be accepted in the best interest of the organisation as full and

final settlement of the issue with interest in accordance with the signed MOU. After the

moneys had come into the bank account of the CGEWHOt CEO could extend the date of the

MOU for compliance of the other formalities ofMOU. Accordingly, the combined General

s

.../

Body and Governing Council advised CEO to deposit the payment submitted by Mls Capital

Builders immediately without any delay and take all necessary actions as per the MOU.~~

Governing Council also advised as an abundant precaution, that whether ~y Caveat

Petition has been filed, if not the CGEWHO should file a Caveat before the Courts. CEO

informed the members that Caveat has already been filed in Punjab & Haryana High Court,

Delhi High Court and Gurgaon High Court.

To consider and a rove im lementation of recommendations re

Part B of6th CPC in CGEWHO

Item No.v)

The issue regarding implementation of Part-E of the 6th CPC recommendations in

CGEWHO was put up before the Combined General Body and Governing Council for

approval. After due discussions, Combined General Body and Governing Council approved the

implementation of Part-E of the 6th CPC as recommended by the Executive Committee in its

87th meeting held on 04.03.2011. Further, Combined General Body and Governing Council

advised that while sending the proposal to the MHUP A, the following details have to be

[orwarded:-

Effective date of implementation ofPart-B of6th CPC in CGEWHO.a)

Total financial implication while implementing the Part B of 6th CPC and quantum ofarrears to be paid. .b)

How the expenditure on the implementation ofPart-B has to be met out by CGEWHO.c)

Chair .

b