SEZ SINS EXPOSED

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CAG says irregularities began before framing policy
PANJIM, MARCH 25
Blatant irregularities of the State government in the allotment of land to seven special economic zones (SEZs) in three industrial estates have been thoroughly exposed by the findings of the Comptroller and Auditor General of India (CAG). The CAG report tabled in the Goa assembly on Tuesday has listed out numerous irregularities indulged in by Goa Industrial Development Corporation (GIDC) in allotting 38,40,886 square metres of land to seven SEZs — in its five industrial estates.
Allotment made for SEZs not only lacked transparency but GIDC sacrificed land acquired for small and medium scale industries under the Industrial Growth Center (IGC) Scheme for the advantage of SEZ companies, the report revealed.“Allotment to SEZs was made without publicizing, that too before the State government formulated its SEZ policy”, says the CAG.Verna industrial estate (VIE) was established under the IGC scheme of government of India for which financial assistance of Rs 10 crore was received. But shockingly, area to the extend of 24.05 lakh square metres allotted for five companies for SEZs in Verna formed part of the total area of 65.81 lakh square metres acquired for IGC.
UNDUE CONCESSION: Making a special concession for SEZ allottees, the GIDC also removed a clause from the lease deed that enables revision of the annual lease rent (ALR) as and when premium rates are revised . “This was an undue concession to SEZ allottees” remarked the CAG report.
LOWER LAND RATES: Sins committed by GIDC do not end here. Bending over backwards to satisfy the SEZ promoters, the GIDC allotted land at a lower rate. “Revision of premium rate at Verna phase IV, effected only after major chunk was allotted at lower rate , tentatively fixed, resulted in a loss of Rs 36.89 crores.”
GIDC had in March 2004 acquired 35.88 lakh square metres of land in Verna and Loutolim villages for expansion of phase IV of Verna industrial estate.It commenced allotment in September 2005 in the areas even before the layout plan was prepared and sub-divisions completed at tentatively fixed (September 2005) premium rate of Rs 600 per square metre .
The rate was subsequently revised in August 2006 to Rs 750 per square metre but allotted 24.6 lakh at Rs 600 per square metre and only 15,365 square metres for Rs 750, CAG said.Based on the board’s decision, GIDC allotted land admeasuring 16.73 lakh square metres to four companies at premium rate of Rs 600 – namely K Raheja Corp, Paradigm Logistics, Inox Mercantile and Planetview, for setting up SEZs.
EXTRA ALLOTTMENT: The GIDC is also guilty of excess allotment of land to the four SEZ companies that were allotted land in phase IV of VIE.Inclusion of area to the extent of 5.28 lakh square metres initially in the deeds over and above the allotted area was irregular. The unauthorized inclusion of additional land was an undue favour to the companies which helped them to obtain SEZ approval , the CAG noted.
KERI: Based on requests (March 2006), GIDC allotted 12.32 lakh square metres in March/April 2006 in Keri, to Meditab Specialities – a subsidiary of Ciplas at premium rate of Rs 80 per square metre while 2.04 lakh square metres land was allotted in Sancoale at a lease premium of Rs 270 per square metre.
Meditab was allotted land at a time when GIDC was in the process of implementing a pharma park by itself on land available at Keri and a consultant had already been appointed for the purpose.
NO PERSPECTIVE PLAN: GIDC had been pursuing industrial development on an adhoc basis with no perspective plan.The auditors found that GIDC had no system to assess the requirement in accordance with any specific project of its own or local demand of industries.It deviated from its established role of acquiring and allotting land directly to the entrepreneur by allotting land to developers for further allotments by them.GIDC, CAG found, allotted land before completing basic development activities, paving the way for faxing arbitrary rate of lease premium.It also revealed that allotments were made without transparent selection procedures.

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CAG raps GSIDC over land allotment to SEZs
NT NETWORK
PANAJI-The land allotment to Special Economic Zones or SEZs, by the Goa State Industrial Development Corporation (GSIDC), has been sharply criticised by the Comptroller and Auditor General (CAG), with its report picking holes in the process itself, besides stating that many of the steps taken during allotment were not in accordance with the procedures, while others had caused financial losses to the state. The report was tabled in the just concluded assembly session.
The CAG report accused the corporation of allotting land even before the state government had formulated a policy in this regard and castigated the corporation?s allotment process itself, pointing out that the corporation had not publicised its intention to allot land to the SEZs, and the allotments were not based on any selection process so ?the selection of allotees lacked transparency.?
It also concluded that the corporation deviated from it ?established role? of developing and allotting land directly to entrepreneurs. The report lambasted the corporation for allotting the 24.05 lakh sq mt of land at Verna that was acquired for the promotion of small and medium scale industries in backward areas, under the Industrial Growth Scheme of the Union government and for which an assistance of Rs 10 crore had been received and allotting it 5 companies to form SEZs.
Pointing out that the corporation had executed lease deeds with four SEZs allotees for more area than approved by the Board of Approval or BOA, it criticised the decision to keep Annual Lease Rent (ALR), static for the lease period of thirty years, saying that it ?was an undue concession made to SEZ allottees.?
The allotment of land touching the land initially allotted to the four SEZs at a lesser rate has resulted in a loss of Rs 39.47 crore, alleged the CAG.
The inclusion of an area of 5.28 lakh sq mt itself over the approved and allotted area was irregular and the unauthorised inclusion of this additional land was ?undue favour to these companies?,? said the highly critical CAG report.
It also pulled up the corporation for allotting 75, 457 sq mt of land in Verna to CIPLA at a premium of Rs 2.08 crore, when it should not have been computed at this rate as the company had not complied with the pre-requisition agreement and deposit of cost of acquisition as formulated by the corporation for
special acquisition.

http://timesofindia.indiatimes.com/Cities/Goa/CAG-points-out-SEZ-land-irregularities/articleshow/4316743.cms
CAG points out SEZ land irregularities
26 Mar 2009, 0516 hrs IST, TNN
PANAJI: The report of the Comptroller and Auditor General (CAG) has pointed out irregularities in land allotment at Verna Industrial Estate to special economic zones (SEZ) which resulted in a loss of Rs 36.89 crore.
The report observes that though the state’s SEZ policy assigned no specific role to the Goa Industrial Development Corporation (GIDC), the corporation had allotted 38.41 lakh sq m of land to seven SEZs. GIDC even executed lease deeds with four SEZ promoters for more area than approved by the SEZ Board of Approval, which was rectified by allotting the area at lesser rates resulting in loss of Rs 39.47 crore, states the report tabled in the assembly on Tuesday.
The report says, “Allotments of land at Verna Phase IV to SEZs were irregular as the land was acquired for an industrial growth centre with financial assistance from the government of India”.

Auditor slams Goa government over SEZs

Panaji, March 25 (IANS)
Virtually confirming suspicions raised by opponents of special economic zones (SEZ) here, India’s official auditor has hinted at a possible scam in the process of releasing vast tracts of land to four of the seven SEZ operators in Goa.“The Goa Industrial Development Corporation (GIDC) executed lease deeds with four SEZ allottees for more area than approved by the Board (SEZ Board of Approval), which was rectified by allotting the area at lesser rates resulting in loss of Rs.39.47 crore,” the Comptroller and Auditor General (CAG) said in a report tabled in the assembly Tuesday.

Criticising the arbitrary allotment of land to SEZ operators, the CAG said while the GIDC had handed over the land to the developers even before the state government formulated its SEZ policy, “the allotments were not made based on any selection process such as invitation of expression of interest”.

The CAG also said GIDC’s decision to keep the annual lease rent (ALR) fixed at the time of allotment unchanged for a lease period of 30 years was an undue concession.
“The change in the clause was detrimental to the interest of the GIDC as it deprived the corporation from revising the ALR as and when the lease premium in that area was revised,” the report stated.

The setting up of several SEZ in the state has created a furore, with the opposition and various civil society groups taking to the streets alleging that the exercise was a camouflage for land-grabbing.
Following rising public outcry, the state government in 2008 scrapped 12 out of the proposed 15 SEZ projects. While seven SEZ promoters had been allotted 3.894 million square metres, only three SEZ projects had been notified.

Chief Minister Digambar Kamat now says the state government has asked the central government to de-notify the SEZs on account of public opposition.
“The state government will not go against the wishes of the people. We have written to the central government seeking de-notification of SEZs in Goa. Their approval is awaited,” Kamat has said.

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