The project was cleared by the state Cabinet last month, but the MMRDA board, headed by state chief minister Narayan Rane, failed to give its nod at its meeting on June 17. The project, to be implemented under the supervision of leading architect Hafeez Contractor, plans to give a five-star look to the seat of power and create more than 1,45,000 square feet of space to accommodate offices from the new administrative building situated opposite Mantralaya.

"From the provisions of the MMRDA Act, it will be more than evident that the renovation of Mantralaya is not covered by Section 12 of this legislation," said former MMRDA commissioner Manmohan Singh. He said, "In case money is given for this purpose, it is definite that it will invite adverse criticisms and possibly public-interest litigation."

Singh,who was brought in as the MMRDA commissioner by Rane immediately after the unceremonious exit of the then chief minister Manohar Joshi, has been axed for his dissenting note. He has been shunted out of the MMRDA and replaced by a senior IAS officer Ajit Warty. Singh has subsequently been posted as the managing director of defunct Maharashtra State Financial Corporation.

Singh had argued that MMRDA would have to provide Rs 1,260 crore in the Rs 6,580-crore Mumbai Urban Development Project-II. According to him, MUTP-II is at the final stages and the World Bank may agree to give loan in the near future. He said that the Bank may not give more than 65 per cent as the project loan and the rest of money would have to be invested from MMRDA funds.

He had emphasised the need for release of funds available with MMRDA only for the projects covered under Section 12 of the MMRDA Act and for the purpose of implementation of MUTP-II.

Singh said that MMRDA has made a provision of Rs 889 crore during 1999-2000 budgetfor financing the local bodies on the basis of policies decided by the authority. "In case, we give loans for the purposes not enumerated under the MMRDA Act, it will be difficult for us to meet our financial commitments for the current year's budget also," he said.

Former MMRDA commissioner has expressed serious doubts over the recovery of funds worth Rs 1,675 crore provided to the Cotton Growers' Federation, Shivshahi Punarvasan Prakalp, City and Industrial Development Corporation, Maharashtra State Financial Corporation, Maharashtra Krishna Valley Development Corporation, Maharashtra Jeevan Pradhikaran, Maharashtra State Road Development Corporation and Forest Development Corporation of Maharashtra.