New Delhi, Aug 14 (PTI) The BJP-led North Delhi Municipal Corporation on Saturday rejected as "baseless" allegations of corruption levelled by the AAP which had claimed the land of Novelty cinema in the Walled City here was sold at a rate much below its actual worth in the market.

Senior AAP leader and party's chief spokesperson, at a press conference on Friday, had alleged that the North Corporation had sold this "massive high-profile 1,100 sqm plot in the commercial area for just Rs 34 crore, while its market value should have been between Rs 125 and Rs 150 crore"

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The famous Tyre Market and Cloth Market of Chandni Chowk encircles the complex, and these small shops would cost around Rs 30-35 crore.

It is inexplicable as to how such a massive plot could be sold for that value without involving corruption, Bhardwaj had alleged.

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Standing Committee Chairman of NDMC, Jogi Ram Jain, refuted the allegations, levelled by the Aam Aadmi Party as "baseless".

The total land of Novelty cinema is about 1,157 sqm, and the circle rate is Rs 70,080 per sqm. According to the commercial rate, here "factor three is applied", he was quoted as saying in a statement issued by the NDMC.

Jain said, according to this, the cost of the land of Novelty cinema comes to about Rs 24 crore.

Despite this, the North Delhi Municipal Corporation has kept the basic price of the land of Novelty cinema at Rs 34.59 crore, he claimed, adding, a total of Rs 34.75 crore has been received for the tender process for this land.

The NDMC panel chief said the "process of e-tendering has been followed" in the entire tendering process.

Jain hit back at the AAP, saying the party is "not aware" of the complete facts, and they always make "false allegations" without knowing the facts.

"The land of Novelty cinema has not been given on a freehold basis; the corporation has given this land on leasehold with 2.5 per cent rent i.e. total Rs 88 lakh will be received by the corporation every year as rent," the NDMC panel chief claimed.

He also said only 50 per cent covered area of the total land is allowed, and its FAR (floor area ratio) is 125 only, i.e. according to this, only a two-and-a-half storeyed building can be built on this land.

Jain said the allegation has been levelled by the AAP to "fulfil its political ambitions" so that they can "take advantage" of it in the municipal elections due next year.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)