HERALD REPORTER
PANJIM, JULY 27
The Division Bench of Bombay High Court on Monday adjourned the Special Economic Zone (SEZ) petitions for final hearing till August 31 thus asking the petitioners to amend the petitions in view of withdrawal of SEZ policy by the State Government within four weeks.
The Bench comprising of Justice S B Deshmukh and Justice U D Salvi ordered the State Advocate General Subodh Kantak to amend the petition and file it before the Bench in next four weeks and thereafter two weeks for reply.
In last order on June 16, the petitioners were asked to amend the petition within two weeks.The amendment is warranted after Chief Minister Digambar Kamat-led government on June 15, 2009 withdrew the SEZ policy. The State government had scrapped 12 SEZs while three are awaiting de-notification with Central Commerce Ministry.
The six SEZ promoters – Meditab Specialities Pvt Ltd, Peninsular Pharma Research Centre Pvt Ltd, Paradigm Logistic & Distribution Private Ltd, Planetview Mercantile Company Pvt Ltd, Inox Mercentile Company Pvt Ltd and Maxgrow Finlease Pvt Ltd are before High Court. They moved High Court after Goa Industrial Development Corporation (GIDC) issued them show cause notice asking them to withdraw the land allotted to them as State government has taken a decision not to have SEZs in Goa.
The promoters’ contention is that they have invested heavily in the SEZ projects and suffered huge losses due to the stop work orders issued by the government.
The GIDC had acquired about 3.8 million square meters of land for setting up the SEZs.
CM Digambar Kamat during the ongoing Assembly session has submitted on the floor that decision to withdraw the SEZ policy is absolutely right, stating that such enclaves would have ‘put strain on State’s resources’.
Tuesday, July 28, 2009
Monday, July 20, 2009
Goa criticised for pushing SEZs in guise of ‘health estates’
Panaji, July 18 (IANS)
Health estates, a new real estate project being aggressively promoted by the Goa government, has raised the hackles of Goa’s numerous civil society groups who allege that the government is trying to slip in SEZs through the back door by disguising them.
The health estates, which were notified through a government gazette, are meant to promote health services and facilitate medical tourism in the state. They will function under the newly formed Goa Health Services Development Corporation.
The notification dated June 26 defines health services as “any services by way of finance, premises, hospitals, health centres and any other services for betterment of health of the community and society at large”.
With the Congress-led coalition government’s earlier attempts to parcel out large tracts of land to real estate developers in the guise of mega housing projects, IT parks and fraudulently made allotments to Special Economic Zone (SEZ) developers successfully scuttled by sustained civil dissent since 2006, not many are willing to buy the concept of health estates.
“These are SEZs by another name. Those who devised these health estates are only interested in development of real estate,” Sabina Martins, co-convenor of the Goa Bachao Abhiyaan (GBA), told IANS. GBA is an umbrella organisation of nearly 30 NGOs that has spearheaded and channelled public campaigns over the last three years.
“The notification allows land to be acquired for public purpose and then in the name of private-public partnership allows alteration of its use,” Martins said.
Arvind Bhatikar, an former bureaucrat and civic activist, said the health estates were nothing but another land scam waiting to happen in Goa, which has seen real estate prices reaching dizzying heights in the recent past.
Father Maverick Fernandes, secretary of the Roman Catholic Church-backed Council for Social Justice and Peace (CSJP), criticised the government for making yet another attempt to “grab” land. “Instead of doing all this, the government should use the land judiciously and for the betterment of the people,” he said.
Interestingly, the Trained Nurses Association of Goa, which has also opposed the health estates project, has said that government run hospitals were critically short of essential facilities.
“Our hospitals in Goa are in shambles. First, the government should at least improve the present infrastructure. Goa’s best state-run health facility, the Goa Medical College, is in a mess. The government has got to get its priorities right,” said Nilima Rane, secretary of the Trained Nurses Association.
Indian Medical Association president Amol Tilve said that the implications of the Goa Health Services Development Act, which empowers the creation of health estates, needs to be examined thoroughly.
Health Minister Vishwajit Rane has, however, denied any ulterior motive as far as the health estates were concerned. “There is nothing to hide. It is not going to be a five-star residential complex. It is going to be purely a place to provide health facilities or allied activities to benefit the people of Goa. I will do what my conscience permits and as advised by the health advisory council,” he said earlier this week.
http://www.sindhtoday.net/news/1/31840.htm
Health estates, a new real estate project being aggressively promoted by the Goa government, has raised the hackles of Goa’s numerous civil society groups who allege that the government is trying to slip in SEZs through the back door by disguising them.
The health estates, which were notified through a government gazette, are meant to promote health services and facilitate medical tourism in the state. They will function under the newly formed Goa Health Services Development Corporation.
The notification dated June 26 defines health services as “any services by way of finance, premises, hospitals, health centres and any other services for betterment of health of the community and society at large”.
With the Congress-led coalition government’s earlier attempts to parcel out large tracts of land to real estate developers in the guise of mega housing projects, IT parks and fraudulently made allotments to Special Economic Zone (SEZ) developers successfully scuttled by sustained civil dissent since 2006, not many are willing to buy the concept of health estates.
“These are SEZs by another name. Those who devised these health estates are only interested in development of real estate,” Sabina Martins, co-convenor of the Goa Bachao Abhiyaan (GBA), told IANS. GBA is an umbrella organisation of nearly 30 NGOs that has spearheaded and channelled public campaigns over the last three years.
“The notification allows land to be acquired for public purpose and then in the name of private-public partnership allows alteration of its use,” Martins said.
Arvind Bhatikar, an former bureaucrat and civic activist, said the health estates were nothing but another land scam waiting to happen in Goa, which has seen real estate prices reaching dizzying heights in the recent past.
Father Maverick Fernandes, secretary of the Roman Catholic Church-backed Council for Social Justice and Peace (CSJP), criticised the government for making yet another attempt to “grab” land. “Instead of doing all this, the government should use the land judiciously and for the betterment of the people,” he said.
Interestingly, the Trained Nurses Association of Goa, which has also opposed the health estates project, has said that government run hospitals were critically short of essential facilities.
“Our hospitals in Goa are in shambles. First, the government should at least improve the present infrastructure. Goa’s best state-run health facility, the Goa Medical College, is in a mess. The government has got to get its priorities right,” said Nilima Rane, secretary of the Trained Nurses Association.
Indian Medical Association president Amol Tilve said that the implications of the Goa Health Services Development Act, which empowers the creation of health estates, needs to be examined thoroughly.
Health Minister Vishwajit Rane has, however, denied any ulterior motive as far as the health estates were concerned. “There is nothing to hide. It is not going to be a five-star residential complex. It is going to be purely a place to provide health facilities or allied activities to benefit the people of Goa. I will do what my conscience permits and as advised by the health advisory council,” he said earlier this week.
http://www.sindhtoday.net/news/1/31840.htm
Thursday, July 2, 2009
The great Goan Land Scam - Himanshu Upadhyaya
The great Goan land scam
The main opposition party (BJP) as well as resistance movements against SEZs were quick to grasp the moment putting forward a demand for CBI probe and criminal inquiry. The CAG audit report had probed into land allotments to Dona Paula IT Park on the outskirts of Panaji (2,85,296 square metres), the Quintol Food Park (4,19,000 square metres) and seven SEZs (38,41,000 square metres) as part of the performance audit of government companies.
However, over six years ago, CAG's performance audit report on GIDC for the year ending 31 March 2003 had remarked that, "Saleable land admeasuring 29.57 lakh square metre remained unutilised for period ranging upto 21 years since the said land was acquired". The report was tabled in the year 2004 and has not been discussed by Goa Assembly's Public Accounts Committee.
Even though GIDC was in possession of 36.57 lakh square metres of unutilised saleable land as on March 31, 1998, it further acquired 13.71 lakh square metre of land during 1998-2003, at a huge cost and without a proper market survey, found the CAG. Out of this 13.71 lakh square metres land, as much as 8.53 lakh square metre (96 per cent) remained unallotted as explained below.
There is more.
Coming back to the more recent times, the audit scrutiny examined all allotment to SEZs and allotments of area more than 10,000 square metres individually in Verna, Kundaim, Pissurlem and Cuncolim. This amounted to 7.83 lakh square metres and the CAG noticed irregularities in 86 allotments measuring 46.24 lakh square metres, involving the loss of revenue of Rs.102.64 crore. In short, almost 91.32 percentage of all its land allotment during last five years smack of irregularities.
In the Quitol Food Park case, the CAG auditors were shocked to find out that in deviation of GIDC's established policy, it acquired and allotted 4.19 lakh square metre of land to Betul Hospitality Parks Private Limited in April 2007 in the name of 'auxiliary services to Food Park', even as it was aware that BHPL had applied for 'setting up residential resorts for upmarket tourists'.
In the Dona Paula IT Park case, the CAG auditors noticed that the state government transferred 2.85 lakh square metre of land in June 2000 to state run Goa Info Tech Corporation for setting up IT and ITES. GITC developed the land and allotted 18 plots admeasuring 2,03,757 square metres area between August 2006 and October 2007 at a premium of Rs.4600 per square metre to 14 parties. The CAG auditors scrutinised the data and observed that "incorrect assessment of market rate of land resulted in loss of Rs.9.84 crores by way of premium and thereby undue benefit to allottees of the land". Also calculating the ripple effect of the loss in term of lease rent, CAG auditors noted that the company would suffer a loss worth Rs.5.90 crores (2 per cent of Rs.9.84 crores for 30 years).
Audit of the applications and allotments in Dona Paula IT Park case revealed large scale irregularities, since out of 37 applications only 19 were from IT firms, while 18 were from Real Estate Developers. Allotments were eventually made to 5 IT firms and 9 Real Estate Developers, while rejecting 23 applications, indicating that prime land earmarked for IT and ITES was being palmed off to speculative real estate interests that too at rates arrived by incorrect assessment.
According to the CAG report, in one instance, a real estate developer - Venkatarao Infra Projects - was allotted plots without even a proper application or project report, and five developers were allotted plots by relaxing the prescribed eligibility criteria.
On the land allotments to 7 SEZs, CAG stated that GIDC allotted the land (during April-May 2006) even without publicising or following up a proper process such as invitation of expression of interest, etc., and even before the state had designed its SEZ policy. Even more shocking: a huge chunk of SEZ land - 24.05 lakh square metre allotted to five SEZs at Verna - was carved out of 65.81 lakh square metres of land acquired for small and medium scale industries under centrally assisted Industrial Growth Centre scheme violating Government of India guidelines.
CAG auditors further noticed that undue favour was extended to SEZ developers by dropping a clause that enabled revision of Annual Lease Rent (ALR) as and when premium rates are revised. Trying to argue that this was not by design, the GIDC management stated in its reply in August 2008, "revision of ALR annually was not applicable to SEZ as the entire infrastructure maintenance cost within SEZ would be borne by SEZ developers". CAG auditors stated that the reply was not appropriate as GIDC had included its rights to revise the ALR in lease deed with BHPL for land at Quitol Food Park.
The list goes on and on. A comprehensive narration of CAG's findings about GIDC will take several pages more.
In sum, the CAG reports show that Goa's fever for land acquisition appears completely misplaced. GIDC and the state government are accountable for the large tracts of land that have been lying unutilised, after allottment or acquisition. Such land could simpy be handed back to people from whom it was acquired in the name of 'public purpose', rather than it being allowed to remain in 'suspended industrialisation' mode for years and then swiftly being handed over to SEZ developers at cheaper rates.
Himanshu Upadhyaya 30 June 2009
Himanshu Upadhyaya is an independent researcher working on Public Finance and Accountability issues.
Goa's land allocation policy to SEZs has been indicted for massive irregularities by the Comptroller and Auditor General. The list of violations is more or less a case the fence eating the crop, finds out Himanshu Upadhyaya.
courtesy http://indiatogether.com/2009/jun/gov-goascam.htm 30 June 2009 -
In an audit report tabled in Goa assembly during the last week of March 2009, the supreme audit institution - Comptroller and Auditor General of India - has once again pronounced critical remarks on SEZs, this time around on massive irregularities in land allotments by Goa Industrial Development Corporation (GIDC) to SEZ promoters.
The main opposition party (BJP) as well as resistance movements against SEZs were quick to grasp the moment putting forward a demand for CBI probe and criminal inquiry. The CAG audit report had probed into land allotments to Dona Paula IT Park on the outskirts of Panaji (2,85,296 square metres), the Quintol Food Park (4,19,000 square metres) and seven SEZs (38,41,000 square metres) as part of the performance audit of government companies.
On closer examination what emerges is an even more worrisome problem. Land acquired in past for 'public purpose' remains unutilised and undeveloped for years, and despite this, repeat land acquisition quests were undertaken by the government. Worse, the current legal regime has no space for handing back such land to persons from whom it was acquired in the first place
A huge chunk of SEZ land - 24.05 lakh square metre allotted to five SEZs at Verna - was carved out of 65.81 lakh square metres of land acquired for small and medium scale industries under centrally assisted Industrial Growth Centre scheme violating Government of India guidelines.
The audit scrutiny revealed that GIDC has acquired 166.86 lakh square metres land for 22 industrial estates and 7 special projects from 1966 till March 2003. Furthermore, during the last five years alone, ending March 2008, it initiated land acquisition proceedings for another 164 lakh square metres, i.e. an amount as high as what it acquired in the previous 37 years. Logically, one would expect that if land acquisition proceedings over such a large area were initiated within such a short period, GIDC was acting with due diligence on the need and requirement of such a rapid growth in industrialisation.
However, over six years ago, CAG's performance audit report on GIDC for the year ending 31 March 2003 had remarked that, "Saleable land admeasuring 29.57 lakh square metre remained unutilised for period ranging upto 21 years since the said land was acquired". The report was tabled in the year 2004 and has not been discussed by Goa Assembly's Public Accounts Committee.
Even though GIDC was in possession of 36.57 lakh square metres of unutilised saleable land as on March 31, 1998, it further acquired 13.71 lakh square metre of land during 1998-2003, at a huge cost and without a proper market survey, found the CAG. Out of this 13.71 lakh square metres land, as much as 8.53 lakh square metre (96 per cent) remained unallotted as explained below.
The numbers show that on the one hand, GIDC was acquiring within five years, as much land as it acquired in 37 years, and on the other hand, it was not able allot 96 per cent of the saleable area of the land that it acquired during 1998-2003.
There is more.
Coming back to the more recent times, the audit scrutiny examined all allotment to SEZs and allotments of area more than 10,000 square metres individually in Verna, Kundaim, Pissurlem and Cuncolim. This amounted to 7.83 lakh square metres and the CAG noticed irregularities in 86 allotments measuring 46.24 lakh square metres, involving the loss of revenue of Rs.102.64 crore. In short, almost 91.32 percentage of all its land allotment during last five years smack of irregularities.
In the Quitol Food Park case, the CAG auditors were shocked to find out that in deviation of GIDC's established policy, it acquired and allotted 4.19 lakh square metre of land to Betul Hospitality Parks Private Limited in April 2007 in the name of 'auxiliary services to Food Park', even as it was aware that BHPL had applied for 'setting up residential resorts for upmarket tourists'.
In the Dona Paula IT Park case, the CAG auditors noticed that the state government transferred 2.85 lakh square metre of land in June 2000 to state run Goa Info Tech Corporation for setting up IT and ITES. GITC developed the land and allotted 18 plots admeasuring 2,03,757 square metres area between August 2006 and October 2007 at a premium of Rs.4600 per square metre to 14 parties. The CAG auditors scrutinised the data and observed that "incorrect assessment of market rate of land resulted in loss of Rs.9.84 crores by way of premium and thereby undue benefit to allottees of the land". Also calculating the ripple effect of the loss in term of lease rent, CAG auditors noted that the company would suffer a loss worth Rs.5.90 crores (2 per cent of Rs.9.84 crores for 30 years).
Audit of the applications and allotments in Dona Paula IT Park case revealed large scale irregularities, since out of 37 applications only 19 were from IT firms, while 18 were from Real Estate Developers. Allotments were eventually made to 5 IT firms and 9 Real Estate Developers, while rejecting 23 applications, indicating that prime land earmarked for IT and ITES was being palmed off to speculative real estate interests that too at rates arrived by incorrect assessment.
According to the CAG report, in one instance, a real estate developer - Venkatarao Infra Projects - was allotted plots without even a proper application or project report, and five developers were allotted plots by relaxing the prescribed eligibility criteria.
On the land allotments to 7 SEZs, CAG stated that GIDC allotted the land (during April-May 2006) even without publicising or following up a proper process such as invitation of expression of interest, etc., and even before the state had designed its SEZ policy. Even more shocking: a huge chunk of SEZ land - 24.05 lakh square metre allotted to five SEZs at Verna - was carved out of 65.81 lakh square metres of land acquired for small and medium scale industries under centrally assisted Industrial Growth Centre scheme violating Government of India guidelines.
CAG auditors further noticed that undue favour was extended to SEZ developers by dropping a clause that enabled revision of Annual Lease Rent (ALR) as and when premium rates are revised. Trying to argue that this was not by design, the GIDC management stated in its reply in August 2008, "revision of ALR annually was not applicable to SEZ as the entire infrastructure maintenance cost within SEZ would be borne by SEZ developers". CAG auditors stated that the reply was not appropriate as GIDC had included its rights to revise the ALR in lease deed with BHPL for land at Quitol Food Park.
The list goes on and on. A comprehensive narration of CAG's findings about GIDC will take several pages more.
In sum, the CAG reports show that Goa's fever for land acquisition appears completely misplaced. GIDC and the state government are accountable for the large tracts of land that have been lying unutilised, after allottment or acquisition. Such land could simpy be handed back to people from whom it was acquired in the name of 'public purpose', rather than it being allowed to remain in 'suspended industrialisation' mode for years and then swiftly being handed over to SEZ developers at cheaper rates.
Himanshu Upadhyaya 30 June 2009
Himanshu Upadhyaya is an independent researcher working on Public Finance and Accountability issues.
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