A complaint was lodged in October 2007 by villagers with documents to substantiate the illegalities and irregularities in the allotments, claimed the convener of the manch, Mr Charles Fernandes.
The manch also wanted the GIDC board of directors, and “conniving bureaucrats,” who it claimed were instrumental in the fraudulent land allotments, to either resign immediately or necessary action should be taken by the Chief Minister, Mr Digambar Kamat to ensure their removal.
Alleging that there was a considerable loss to the public exchequer amounting to crores of rupee, the manch demanded an inquiry based on the 2008 CAG report to be conducted by the Accounts Committee of the Legislative Assembly.
Another pertinent argument brought up by the manch was that the GIDC should frame rules under Section 51 specifying the mode and method of allotment of lands as per the GIDC Act and preference should be given to small and medium local entrepreneurs for setting up micro industries in interest of self employment.
It also reiterated its earlier demand that the GIDC should revert back the land acquired to the villagers for them to decide the nature of its use.
Stating that the SVM rejoices with the people from Loutolim, Kerim- Ponda, Verna, Sancoale over their victory in the SEZ case that was filed in the High Court of Bombay, Goa Bench, the manch acknowledged the assistance by the Human Rights Law Network (HRLN) represented by senior advocate, Mr Mihir Desai, senior advocate, Mr Colin Gonsalves (senior counsel of Supreme Court), Mr Krishnendu Mukherjee, and Mr Ajit Singh Rane Sardessai.
It may be recalled that the Court had quashed the allotments of lands to the promoters of SEZs - Meditab Specialities at Kerim, Peninsula Pharma at Sancoale and Raheja Corporation, Paradigm Logistics, Inox Mercantile, Planetview Mercantile and Maxgrowe Finlease at Verna and Loutolim and also passed strictures against the Goa Industrial Development Corporation (GIDC) board for allotting approximately 39 lakh square metres “illegally and in undue haste”.
Tuesday, November 30, 2010
SVM wants judicial inquiry into SEZ land allotment
SVM for ouster of GIDC officials, bureaucrats
TNN, Nov 30, 2010, 01.07am IST
PANAJI: Jubilant at the high court order setting aside land allotments to SEZs in Goa, the SEZ Virodhi Manch (SVM) on Monday demanded the immediate resignation of the GIDC board of directors and conniving bureaucrats "instrumental in the fraudulent land allotments," or their sacking by the chief minister.
The SVM has also demanded that the chief minister launch a judicial inquiry to unearth the land allotment scam.
SVM called for appropriate action against police officers for failing to register an FIR in October 2007 against the GIDC's board members, despite villagers having documents to substantiate the irregularities in allotments. It also demanded an inquiry based on the CAG 2008 report by the public accounts committee of thelegislative assembly as there was "considerable losses to the public exchequer amounting to crores of rupees."
Additionally, the Manch demanded that the GIDC revert the land acquired by promoters of the SEZs to the villagers and that the latter decide the nature of use of land in their respective gram sabhas.
"The GIDC should frame rules under Section 51 specifying the mode and method of allotment of lands as per the GIDC Act. Preference should be given to small and medium local entrepreneurs for setting up micro industries in the interest of self employment," said a SVM press release.
SVM noted that the learned judges of the high court have quashed the allotments of lands to the promoters of SEZs namely, Meditab Specialities at Kerim, Peninsula Pharma at Sancoale and Raheja Corporation, Paradigm Logistics, Inox Mercantile, Planetview Mercantile and Maxgrowe Finlease at Verna and Loutolim. Observing that the high court passed strictures against the Goa Industrial Development Corporation (GIDC) Board for allotting approximately 39 lakh sq m "illegally and in undue haste", SVM attributed the success to their legal team.
The SVM has also demanded that the chief minister launch a judicial inquiry to unearth the land allotment scam.
SVM called for appropriate action against police officers for failing to register an FIR in October 2007 against the GIDC's board members, despite villagers having documents to substantiate the irregularities in allotments. It also demanded an inquiry based on the CAG 2008 report by the public accounts committee of thelegislative assembly as there was "considerable losses to the public exchequer amounting to crores of rupees."
Additionally, the Manch demanded that the GIDC revert the land acquired by promoters of the SEZs to the villagers and that the latter decide the nature of use of land in their respective gram sabhas.
"The GIDC should frame rules under Section 51 specifying the mode and method of allotment of lands as per the GIDC Act. Preference should be given to small and medium local entrepreneurs for setting up micro industries in the interest of self employment," said a SVM press release.
SVM noted that the learned judges of the high court have quashed the allotments of lands to the promoters of SEZs namely, Meditab Specialities at Kerim, Peninsula Pharma at Sancoale and Raheja Corporation, Paradigm Logistics, Inox Mercantile, Planetview Mercantile and Maxgrowe Finlease at Verna and Loutolim. Observing that the high court passed strictures against the Goa Industrial Development Corporation (GIDC) Board for allotting approximately 39 lakh sq m "illegally and in undue haste", SVM attributed the success to their legal team.
Luizinho in SEZ tangle
Letter favoured 250 acres to Meditab
HERALD REPORTER
PANJIM, NOV 29
In what could be a major embarrassment to the Congress party at the State and national level, information has revealed that former Industries Minister Luizinho Faleiro, who is the party’s national observer, had favoured granting of 250 acres of land to a Special Economic Zone promoter in the State.
Faleiro, who was also the former chief minister, in a note numbered – Min/Indu&Edu/198, dated March 13, 2006, had directed the Goa Industrial Development Corporation (GIDC) to allot land to the M/s Meditab Specialities Pvt Ltd.
The letter by the then minister, a copy of which is in possession of Herald, had directed the GIDC to allot land meant for Education Park, to Meditab.
“I am enclosing herewith a letter dated 10th March 2006, in original received from M/s Meditab Specialities Pvt Ltd, regarding allotment of 250 acres of land at Keri for setting up of pharmaceutical and chemical SEZ in Goa on their own”, Luizinho said in the note.
Further, he continues, “…in this connection I would like to state that in principle it is decided to set up SEZ at Keri (Bhat Khamb) at Ponda taluka which was earlier acquired by the Goa-IDC for Nylon 66, and which is now in possession of GIDC”.
Luizinho also acknowledges in the note that during the tenure of the earlier Government “it was proposed to allot the said land for setting up educational parks to Goa Education Development Corporation (GEDC) and even in the meeting of the Board of GIDC it was proposed and decided to allot the said land to GEDC on actual cost basis for the purpose of setting up of educational institution with a simple interest of 5 per cent on the actual expenditure incurred on the acquisition and the administrative cost till the date of handing over the possession of land,” the note adds.
Further, advocating SEZs in Goa, Luizinho says “SEZs in Goa will augment infrastructure facilities for export products, which is expected to bring large dividends to the State in terms of economic and industrial development and the generation of new employment opportunities”.
Hence, he says, “we may direct GIDC under Sec 16 read with Sec 28 of Goa Daman & Diu Act 1965 (copy of extract enclosed) to allot the 250 acres of land at Keri to M/s Meditab Specialities Pvt Ltd to set up pharmaceutical SEZ on their own on as and where basis”.
He says that the terms should remain the same as decided for educational park on actual cost basis but the interest be increased from 5 per cent to 10 per cent per annum as administrative cost till the date of handing over.
“This will also help the GIDC to acquaint with the procedure to setup SEZ for other parties or unit”, Luizinho said.
Luizinho, however, was not available for comment as his family claimed he was out of station.
It may be noted that the High Court of Bombay at Goa has already stated that land allotments were arbitrary and does not stand the test of reasonableness.
What is embarrassing for the Congress is the development comes close on the heels of the party’s ministers being exposed in Maharashtra for recommending allotment of flats at the Adarsh Society, which is presently in the eye of a storm.
The development cost Ashok Chavan the chief minister’s chair.
HERALD REPORTER
PANJIM, NOV 29
In what could be a major embarrassment to the Congress party at the State and national level, information has revealed that former Industries Minister Luizinho Faleiro, who is the party’s national observer, had favoured granting of 250 acres of land to a Special Economic Zone promoter in the State.
Faleiro, who was also the former chief minister, in a note numbered – Min/Indu&Edu/198, dated March 13, 2006, had directed the Goa Industrial Development Corporation (GIDC) to allot land to the M/s Meditab Specialities Pvt Ltd.
The letter by the then minister, a copy of which is in possession of Herald, had directed the GIDC to allot land meant for Education Park, to Meditab.
“I am enclosing herewith a letter dated 10th March 2006, in original received from M/s Meditab Specialities Pvt Ltd, regarding allotment of 250 acres of land at Keri for setting up of pharmaceutical and chemical SEZ in Goa on their own”, Luizinho said in the note.
Further, he continues, “…in this connection I would like to state that in principle it is decided to set up SEZ at Keri (Bhat Khamb) at Ponda taluka which was earlier acquired by the Goa-IDC for Nylon 66, and which is now in possession of GIDC”.
Luizinho also acknowledges in the note that during the tenure of the earlier Government “it was proposed to allot the said land for setting up educational parks to Goa Education Development Corporation (GEDC) and even in the meeting of the Board of GIDC it was proposed and decided to allot the said land to GEDC on actual cost basis for the purpose of setting up of educational institution with a simple interest of 5 per cent on the actual expenditure incurred on the acquisition and the administrative cost till the date of handing over the possession of land,” the note adds.
Further, advocating SEZs in Goa, Luizinho says “SEZs in Goa will augment infrastructure facilities for export products, which is expected to bring large dividends to the State in terms of economic and industrial development and the generation of new employment opportunities”.
Hence, he says, “we may direct GIDC under Sec 16 read with Sec 28 of Goa Daman & Diu Act 1965 (copy of extract enclosed) to allot the 250 acres of land at Keri to M/s Meditab Specialities Pvt Ltd to set up pharmaceutical SEZ on their own on as and where basis”.
He says that the terms should remain the same as decided for educational park on actual cost basis but the interest be increased from 5 per cent to 10 per cent per annum as administrative cost till the date of handing over.
“This will also help the GIDC to acquaint with the procedure to setup SEZ for other parties or unit”, Luizinho said.
Luizinho, however, was not available for comment as his family claimed he was out of station.
It may be noted that the High Court of Bombay at Goa has already stated that land allotments were arbitrary and does not stand the test of reasonableness.
What is embarrassing for the Congress is the development comes close on the heels of the party’s ministers being exposed in Maharashtra for recommending allotment of flats at the Adarsh Society, which is presently in the eye of a storm.
The development cost Ashok Chavan the chief minister’s chair.
Sunday, November 28, 2010
SEZ case exposes arbitrary functioning of GIDC
SEZ case exposes arbitrary functioning of Goa IDC
Shripad S Merchant, TNN, Nov 28, 2010, 06.16am IST
PANAJI: The legal battle by SEZ developers to hold ground in the state has exposed the functioning of the Goa Industrial Development Corporation (GIDC) as land was allotted by it sans submission of project reports by the companies involved. In two cases, property was transferred even before the formation of companies.
The high court of Bombay at Goa tested the decision of the GIDC to transfer property admeasuring over 30 lakh square meters on the touchstone of reasonableness.
The court found that four SEZ promoters got land from the GIDC in 2006 within a span of a seven days from the date of application. "It is not known in what manner scrutiny of the applications seeking allotment of 16,50,000 sq m of public property was made by a statutory authority like the GIDC," the court remarked. The four applications were made by K. Raheja Corporation Private Limited (KCPL), Paradigm Logistics Distributions Private Limited (PLDPL), Inox Mercantile Co. Pvt. Ltd , and Planet View Mercantile Company Pvt Ltd.
Regarding the allotment of 12 lakh square metres of land at Keri within 21 days from the date of application by Meditab Specialities Pvt Ltd, the court said that the GIDC examined neither the credentials nor financial status and experience of the company.
The court's scrutiny also revealed that the application of Peninsula Research Centre Pvt Ltd (PRCPL)in 2006 did not contain any reference to establishing a SEZ. The application for land admeasuring 2 lakh sqaure metres was made when PRCPL was "under formation" as a company. In another case, land admeasuring over 2 lakh square metres was allotted to Maxgrow Finlease Pvt Ltd on an application made by some other company.
Rejecting the argument of the promoters that the GIDC allotted land to them as there were no other takers for it, the court held that there was no reason to make allotments in a great deal of haste and without any scrutiny of applications.
"Even assuming that the GIDC could have done it without inviting offers from competitors, surely it, without satisfying itself that the allotment was being made to deserving companies having good experience in the field with a view to promote orderly establishment, growth and development of industries in the State of Goa, could not have allotted such vast lands," the court observed
While stating that the allotment of public property need not be made by holding a public auction as a matter of rule, the court noted that the state or public authorities can't act like private persons while disposing of public properties.
The court, however, refraining from going into the controversy about rates at which land was allotted.
Referring to the submissions made by a PIL relying on a CAG report that pointed out irregularities in the allotment of lands in favour of the companies, the court said. The report is recommendatory in nature and had not yet been placed before the legislature.
The court was also posed with the question whether the recommendation made by the industries minister and chief minister earlier for allotting land to the companies can be considered as a direction of the state government .
The court held that there was no state government direction in exercise of powers under Section 16 of the GIDC Act to allot any land for SEZs.
Shripad S Merchant, TNN, Nov 28, 2010, 06.16am IST
PANAJI: The legal battle by SEZ developers to hold ground in the state has exposed the functioning of the Goa Industrial Development Corporation (GIDC) as land was allotted by it sans submission of project reports by the companies involved. In two cases, property was transferred even before the formation of companies.
The high court of Bombay at Goa tested the decision of the GIDC to transfer property admeasuring over 30 lakh square meters on the touchstone of reasonableness.
The court found that four SEZ promoters got land from the GIDC in 2006 within a span of a seven days from the date of application. "It is not known in what manner scrutiny of the applications seeking allotment of 16,50,000 sq m of public property was made by a statutory authority like the GIDC," the court remarked. The four applications were made by K. Raheja Corporation Private Limited (KCPL), Paradigm Logistics Distributions Private Limited (PLDPL), Inox Mercantile Co. Pvt. Ltd , and Planet View Mercantile Company Pvt Ltd.
Regarding the allotment of 12 lakh square metres of land at Keri within 21 days from the date of application by Meditab Specialities Pvt Ltd, the court said that the GIDC examined neither the credentials nor financial status and experience of the company.
The court's scrutiny also revealed that the application of Peninsula Research Centre Pvt Ltd (PRCPL)in 2006 did not contain any reference to establishing a SEZ. The application for land admeasuring 2 lakh sqaure metres was made when PRCPL was "under formation" as a company. In another case, land admeasuring over 2 lakh square metres was allotted to Maxgrow Finlease Pvt Ltd on an application made by some other company.
Rejecting the argument of the promoters that the GIDC allotted land to them as there were no other takers for it, the court held that there was no reason to make allotments in a great deal of haste and without any scrutiny of applications.
"Even assuming that the GIDC could have done it without inviting offers from competitors, surely it, without satisfying itself that the allotment was being made to deserving companies having good experience in the field with a view to promote orderly establishment, growth and development of industries in the State of Goa, could not have allotted such vast lands," the court observed
While stating that the allotment of public property need not be made by holding a public auction as a matter of rule, the court noted that the state or public authorities can't act like private persons while disposing of public properties.
The court, however, refraining from going into the controversy about rates at which land was allotted.
Referring to the submissions made by a PIL relying on a CAG report that pointed out irregularities in the allotment of lands in favour of the companies, the court said. The report is recommendatory in nature and had not yet been placed before the legislature.
The court was also posed with the question whether the recommendation made by the industries minister and chief minister earlier for allotting land to the companies can be considered as a direction of the state government .
The court held that there was no state government direction in exercise of powers under Section 16 of the GIDC Act to allot any land for SEZs.
Saturday, November 27, 2010
HC scraps land for SEZs in Goa
HC SETBACK FOR SEZs
HERALD REPORTER
TNN, Nov 27, 2010, 05.32am IST
PANAJI: In a major blow to special economic zone (SEZ) developers, the high court of Bombay at Goa on Friday held that Goa Industrial Development Corporation (GIDC) had allotted over 30 lakh sq m of land to promoters illegally and sans proper scrutiny. Upholding the state government's decision to withdraw the SEZ policy in public interest, a division bench comprising justices A S Oka and F M Reis said, "The allotment of lands to the companies has been made in undue haste without proper scrutiny of their applications. The allotment has been made arbitrarily. Procedure adopted in the allotment is not fair and transparent. The allotments made byGIDC do not stand the test of reasonableness."
The court, in its 195-page judgment, observed that the allotment of the public properties vested in GIDC can only be made in a fair and transparent manner and that too in public interest. It further said that such huge lands which are public properties were allotted for the asking to companies in a manner not known to law. The allotment of lands is illegal being arbitrary and unreasonable.
The state government had, on June 15, 2009, withdrawn the state SEZ policy following a cabinet decision. Subsequently, GIDC had issued notices to the SEZ promoters seeking to take back the allotted land, following which the promoters had approached the high court. In the same case PILs had also been filed by villagers of Keri, Sancoale and Verna, challenging GIDC's decision to allot land in their respective villages on lease agreements to the SEZ promoters. The villagers complained that the land was allotted fraudulently.
The court further held that as far as three notified SEZs are concerned, the stand of the Central government is that the Goa government should negotiate with the developers. It also said that the notifications have been issued on the basis of allotment of lands by GIDC. As the allotments are held to be illegal, notifications cannot be acted upon now.
While granting some relief, the court dismissed petitions filed by three notified SEZs—Meditab Specialities Pvt Ltd, Peninsula Pharma Research Centre Pvt Ltd and K Raheja Corporation Pvt Ltd — and four other SEZ promoters — Paradigm Logistic and Distribution Private Ltd, Planetview Mercantile Company Pvt Ltd, Inox Mercantile Company Pvt Ltd and Maxgrow Finlease Pvt Ltd.
The court, in its 195-page judgment, observed that the allotment of the public properties vested in GIDC can only be made in a fair and transparent manner and that too in public interest. It further said that such huge lands which are public properties were allotted for the asking to companies in a manner not known to law. The allotment of lands is illegal being arbitrary and unreasonable.
The state government had, on June 15, 2009, withdrawn the state SEZ policy following a cabinet decision. Subsequently, GIDC had issued notices to the SEZ promoters seeking to take back the allotted land, following which the promoters had approached the high court. In the same case PILs had also been filed by villagers of Keri, Sancoale and Verna, challenging GIDC's decision to allot land in their respective villages on lease agreements to the SEZ promoters. The villagers complained that the land was allotted fraudulently.
The court further held that as far as three notified SEZs are concerned, the stand of the Central government is that the Goa government should negotiate with the developers. It also said that the notifications have been issued on the basis of allotment of lands by GIDC. As the allotments are held to be illegal, notifications cannot be acted upon now.
While granting some relief, the court dismissed petitions filed by three notified SEZs—Meditab Specialities Pvt Ltd, Peninsula Pharma Research Centre Pvt Ltd and K Raheja Corporation Pvt Ltd — and four other SEZ promoters — Paradigm Logistic and Distribution Private Ltd, Planetview Mercantile Company Pvt Ltd, Inox Mercantile Company Pvt Ltd and Maxgrow Finlease Pvt Ltd.
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