Bangalore, 04 September 2011: After former chief minister BS Yeddyurappa and Katta Subramanya Naidu, it is the turn of Minister for Medium and Large Scale Industries Murugesh R Nirani to come under the Lokayukta scanner.
Nirani has been made party in a complaint before the Lokayukta, alleging that he tried favouring Prisac Housing Construction Pvt Ltd by trying to acquire land for a project, that was already acquired by the government and handed over to Pash Space International Pvt Ltd for another project. The land was allotted to Pash Space in 2006, but a high level panel headed by Nirani did not reject a proposal by Prisac seeking permission for a project on the same piece of land in August 2010.
Although the original complaint was filed before the Lokayukta in October 2010, the company sought Nirani’s inclusion in the list of respondents on Friday.
Pash Space Managing Director Alam Pasha said: “Despite knowing that the land is legally ours, he is refusing to reject Prisac’s proposal. So, we have requested the Lokayukta to summon him, and have got positive response.” The application has been made before Lokayukta ARE-2.
Reacting to the complaint, Nirani said: “We are not doing that. All we want to ensure is the allotted land is utilised for the purpose it was allotted. This is not an isolated case.”
He said that the company is making allegations as it has not met the deadlines given to implement the project. However, according to an framework agreement between the company and the KIADB on behalf of the Government does not specify a strict timeline for the implementation of the project.
The third clause in the agreement made on June 8, 2004 says: “The Board after the issue of final notification under section 28(4) and after transfer of right title and interest under section 28(8) of the said Act shall issue allotment letter in favour of the company by vaguely prescribing the terms and condition as per procedure and also handover unconditionally the vacant and peaceful possession of the land to the company without strictly insisting the specific period of implementation in order to enable the company to facilitate by itself with all the amenities and necessary infrastructure for implementation...”
Pash Space approached the government in 2003, for sanction for its project. “We had even purchased, and had in our possession of the land (Sy no 133/1, 2, 3, 5 & 6 in Doddathoguru and Sy no 41/1 in Chikkathoguru) but then government thought it fit to involve the KIADB,” Pasha said.
“It is only because it was agreed, through the agreement, that there will not be any specific deadline for implementation did we hand over the land belonging to our Board to the KIADB to complete the process,” Pasha said.
Pash Space has paid the processing fee to Karnataka Udyoga Mitra (KUM), and remitted the full consideration amount by a sum of Rs 1,66,01,000 as demanded by the Karnataka Industrial Areas Development Board. The KIADB handed over the land to Pash Space in December 2004 and on November 11, 2006.
Claims confirmed
Replying to the complaint, the KIADB confirmed Pasha’s claims over ownership of the land has said: “The State Level Single Window Agency, in its meeting on November 15, 2003 approved the project proposal of Pash Space and the committee resolved to permit the company to locate their project in the aforementioned land.
The committee also recommended the Karnataka Industrial Areas Development Board. to acquire the said land,” it said, further stating that a lease-cum-sale agreement was also executed in favour of Pash Space.
The complaint before the Lokayukta is pending.