Facts on the proposed project of Centre of Excellence at Nagpur.
November, 28th 2012
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
Facts on the proposed project of Centre of Excellence at Nagpur
This Statement of Facts as regards Centre of Excellence (COE) project at
Nagpur is being issued for the general information of members in view of the
ongoing discussion in public domain.
1. Basic details of the COE project at Nagpur are as under:
i. It is composite contract for property comprising of Land & Buildings with
fully developed infrastructure with support facilities in the State
Government approved Township Project.
Total value of COE Project of Nagpur
Value assigned to Land measuring 9.1 acre @ 1.57 14.28 crores
crore per acre or @ Rs.360 per.sq.ft.
The value assigned to cost of building with fully 83.22 crores
developed infrastructure and various rights and
facilities broadly mentioned below is (2,50,000 sq.ft.
@ Rs.3328 per sq.ft.)
Stamp duty and registration charges 2.44 crores
Total 99.94 crores
Or say around 100 crores
ii. The land admeasures 9.1 Acre. The Value assigned to land is Rs. 14.28
crores which works out to be Rs. 360 per sq.ft.
The value assigned to cost of building with fully developed infrastructure
and various rights and facilities broadly mentioned below is Rs.83.22
Crores (2,50,000 sq.ft. @ Rs.3328 per sq.ft.)
Stamp duty and registration charges is Rs.2.44 crores
iii. The Built Up area is 2.5 Lacs Sq.Ft. including:
Auditorium with capacity of 650 seats,
3 seminar halls with a capacity of 50 persons each, 2 seminar halls
with a capacity of 75 persons each and one seminar hall with a
capacity of 100 persons and with small meeting rooms.
2 residential building. Each residential building having 112 rooms
which can be used on twin sharing basis.
Faculty building with a capacity of 20 room on single occupancy
and 10 VIP rooms on single occupancy
fully paved parking for 200 cars & 200 two wheelers,
connections and systems for managing receiving supply of power,
water, tele-communication etc, facility for drainage and rain
water harvesting and storm water management, Security systems
with access control and including CCTV cameras, fire-fighting
iv) As the Project is in fully integrated township the residents of the COE
will be eligible to use club facilities through ten corporate
membership of club and fifty day membership of club.
v) The project will be green initiative project with gold rating standard
resulting in substantial reduction in recurring cost of consumption
of power and also will have features such as solar heated water
for bathrooms, re-cycled water for landscaping and flushing use.
vi) Landscaping and horticultural services soft-cap maintenance
including greenery and landscape for indoor and outdoor plants,
hard cap maintenance.
vii) 50% of maintenance cost to be borne by vendor for 10 years.
Maintenance includes repair of constructed complex, normal wear
and tear of civil work, paint, mechanical and electrical services,
repair of electrical wear and tear including breakdown, excluding
DG sets, plumbing services repair of plumbing services, repair
of drainage network, repair of potable water network within
viii) Defect guaranty for 3 years from possession date and leakage
warranty for 10 years
ix) Concession of 50% of stamp duty being COE located in township
approved by Government of Maharashtra
x) Police Station and Fire Brigade Station attached to Township.
xi) Obligation undertaken by the Developer to obtain approval from all
The effective rate for land is Rs.360 per sq.ft and effective rate for cost of
Building with fully developed infrastructure and attached rights as above is
Rs.3328 Per Sq.ft.
2. The Council, at its 320th meeting held on 15th October, 2012 has discussed at
length the issues relating to COE project at Nagpur.
(I) In the course of discussion it was felt that a White Paper be prepared
documenting / compiling all the relevant facts on all infrastructure
projects undertaken from 2004 specifically taking note of the need of
physical infrastructure in the context of increasing number of members
& students and ever-changing methodology of imparting
knowledge/coaching and the present and projected availability of
funds to facilitate understanding of facts of the infrastructure and the
details of the processes followed in acquisition and / or development of
the physical infrastructure.
With a view to facilitate systematic study &compilation of facts in the
form of a White Paper for COE project at Nagpur in particular and all
other projects other than Branch offices in general from 2004 onwards,
a six Council Member Group is constituted by the Council at its said
(II) At the said meeting, the Council also decided that no further
expenditure be incurred, in relation to the proposed COE Project at
Nagpur, in any manner whatsoever by the land/building Developer or
any concern/Group associated with that Developer until further advice
from the Institute.
In terms of the above decision/direction of the Council -
the above said Group constituted for the stated purpose had held its first
meeting and discussed, among others the terms of reference and the
methodology to be followed etc;
The Developer has been asked not to incur any further expenditure and the
developer has confirmed to adhere to Institute's instruction.
As for cost so far incurred, it may be mentioned that as per agreements, an
advance of Rs. 9.75 crores has been paid. The balance is payable over a period
of two years.
The above brief statement of facts is placed before the Members at
large for their information so that they are guided by the factual
position and not misled by misinformation or statements with distorted