Solidarity Against SEZs - Demand for PEZs


amka naka SEZ, amka zai PEZ

(we do not want SEZ, we want PEZ)

PEZ: rice gruel (in Konkani) PEZ= Peoples' Economic Zones


Wednesday, June 17, 2009

Adv Sonak, GIDC MD sued for professional misconduct

HERALD CORRESPONDENT, CORTALIM, JUNE 15
An application seeking action against High Court Advocate Mahesh S Sonak and the Managing Director of Goa Industrial Development Corporation (GIDC) A V Palekar for professional misconduct has been filed in the Bombay High Court.
The applicant has sought action against the lawyer under Bombay High Court Rules and Advocates Act and the Bar Council of India Rules.
The applicant, John Philip Pereira of Nagoa-Salcete, an anti-SEZ activist, is the petitioner in the writ petition filed against GIDC and six others. The applicant has alleged that Adv Sonak, despite being on the GIDC panel of advocates, appeared for respondents 3, 4, 5, 6 and 7 (all SEZ firms) in utter disregard to professional ethics. In this case, the State of Goa is respondent 1, while the GIDC is respondent 2.
Moreover, the application also states that Respondent 7, represented by Adv Sonak with Adv N Vaze, had filed a writ against GIDC.The petition, according to Pereira, was filed after an order was passed by the High Court in a writ petition of which Para No 7 states: “the counsel for GIDC assures the court that in case of Respondent 7, all steps which are required in law for canceling the allotment and lease agreement, etc would be initiated and completed before September 8, 2008 by GIDC. This is a clear indication that GIDC’s policy was not in favour of SEZ’s in Goa.
This, the applicant alleged, is a clear violation of Rule 7(ii) of GIDC (terms and conditions of fees to the Corporation’s Counsels) which states “The advocate on panel shall have the right to private practice in all matters except in civil matters, which should not interfere with the efficient discharge of his functions and duties. He will not advise or accept against the Corporation in any cases in which he is likely to be called upon to appear or advise or it is likely to affect or lead to litigation against the Corporation.”
The applicant also accused Sonak of violating Rule 22 of High Court of Bombay original side rules.Praying for suspension of sanad of Adv Sonak and action under relevant rules, the applicant also sought action against the managing director of GIDC for his acts of commission and omission.
When contacted, Adv Sonak said he could not offer his comments since the matter was sub-judice. Meanwhile, the application and writ petition is likely to come before High Court on June 16

Goa scraps SEZ policy, at last

HERALD REPORTER, PANJIM, JUNE 15
Finally, the controversial Special Economic Zone (SEZ) policy 2006 is scrapped. Interestingly, the Cabinet decision on this comes one-and-a-half year after the Goa Government officially said ‘No’ to SEZs in Goa.
“The Cabinet today has decided to withdraw SEZ policy 2006”, Chief Minister Digambar Kamat announced at a post-Cabinet press conference here.Kamat, who was accompanied by Home Minister Ravi Naik, claimed that his Government would continue its opposition to setting up SEZs in the State as they were opposed by the public at large. He said that the State has not given any thought for compensating the SEZ developers although the money paid by them in purchasing land would be reimbursed.
While the 15 approved SEZs have been scrapped, the Government is still nagged with the issue of three SEZs developers -- Meditab Specialities, Peninsula Pharma Research Centre and K Raheja — which were notified. It may be recalled that during Pratapsing Rane-Government in 2006, Goa Industrial Development Corporation (GIDC) allotted huge tracts of land to several companies, for setting up 18 SEZs in Goa. Some allotments were made by GIDC even before the Goa SEZ Policy was notified.
SEZ Virodhi Manch as well as Goa’s Movement Against SEZ were formed and with citizens’ overwhelming support, an agitation was started against SEZs. BJP belatedly joined the bandwagon and made it an election issue in a big way but ultimately failed to be the single largest party in the 2007 assembly election. Denials notwithstanding, BJP was in favour of two SEZs until anti-SEZ protests intensified when it changed its stand.
NO SEZ: A couple of months after the new Government of Digambar Kamat was installed, the anti-SEZ agitation was intensified. Ultimately, respecting the sentiments of the people, Digambar Kamat took a decision to scrap SEZs in Goa on January 1, 2008 – as New Year’s gift to the people of the State. It is still considered to be the boldest decision taken by Kamat as he went against the interests of many of his ministerial colleagues and senior leaders of Congress party.

PROPOSAL: Since January 2008, SEZ Virodhi Manch and GMAS among others had been demanding scrapping of the Goa SEZ Policy, 2006. In this backdrop, the Industries Department put up a note to the Government last year, for scrapping the SEZ Policy, it had drafted three years ago. But the proposal, for reasons unknown, was kept pending for months.
DENOTIFY: Union commerce ministry’s Board of Approval is yet to denotify these SEZs despite several communications from the State Government opposing these industrial enclaves. Asked whether the withdrawal will help the denotification of the three SEZs, Kamat said “I don’t know.” “You are free to make your own assumptions I don’t want to say anything”, he said adding, “I again reiterate that my Government is doing everything to see that the SEZs are denotified”.
Incidentally, the chief minister, during his recent visit to New Delhi, is learnt to have pursued the demand for denotifying the three SEZs, with the Prime Minister Dr Manmohan Singh, and other central leaders including Union Minister for Commerce Anand Sharma

Tuesday, May 26, 2009

Food Park?

MLA draws flak at Quepem:
Villagers of Betul-Naquerim and Quittol vowed to vehemently oppose the proposed Industrial Estate at Quittol, Quepem, at a meeting organised by the Betul-Naquerim Citizens Action Committee at Quepem on May 24. Among the speakers, Fr Maverick Fernandes, executive secretary of the Council for Social Justice and Peace, stressed that the existing Industrial Estates in the state have been of very little help to the local people as they do not offer sufficient remuneration and hence benefit the outsiders. [GT]

Quepem meet throws light on ill effects of food park
HERALD CORRESPONDENT
QUEPEM, MAY 24
The Betul, Canaguini Naquerim Citizen Action Committee on Sunday organized a public meeting in Quepem to create awareness among the people about the ill effects of the proposed Food Park/Industrial Estate at Naquerim.
Addressing the gathering, Council for Social Justice and Peace Executive Secretary Fr Maverick Fernandes said that every development should be a sustainable one.“Most industrial estates in the State are situated on the plateaus, while the settlement areas are at a low-lying area. The illegal digging of bore wells by the industries to meet water demand and release of industrial waste has afected the locals badly,” informed Fr Fernandes.
Criticizing government’s policy of the food park at Betul, Fr Fernandes said that hospitality services means resorts, including villas, but the government tells the people something else. “Most industries in the State are sick units and government support these industries at the cost of Goan tax payers even though these industries in no way help the Goans,” he added. “Land is our identity and if it is gone in the hands of outsiders, then we will lose our identity,” said Fr Fernandes.
Speaking on the occasion, social activist Dr Jorson Fernandes said that the State government has no right to bring industries of a particular nature when there is no proper labour supply in the State.“The government should promote educational institution to train labour and then think of setting up industries. The mismanagement has resulted in migration of outsiders,” he stated. “The government buys the land from locals at Rs 20 and sells it to private companies at Rs 620. Then to whom does these money go,” asked Dr Fernandes. He further stated that setting up of industrial estate would result in shortage of water and electricity to the locals.
Canaguini Church Parish Priest Fr Henry D’Souza said that the locals have to chose what is good and bad for them, but the local representatives impose on them what they do not want. Other who addressed the meeting includes Betul, Canaguini Naquerim Citizen Action Committee Vice
President Percy Pereira and Sudhaker Joshi.

Tuesday, May 12, 2009

Govt. panel comes down heavily on SEZs

http://www.thehindu .com/holnus/ 002200905101212. htm<http://www.thehindu .com/holnus/ 002200905101212. htm>
New Delhi (PTI):
Special Economic Zones have come in for sharp criticism from a high-level government panel which said that creation of SEZs not only meant "betting on the strong" but also providing a "special level playing field" for the mightycorporates."...
The creation of SEZs that manifestly benefit the large corporate entities is a case of not only betting on the strong but one of creating a special playing field for the alreadymighty...," the National Commission for Enterprises in the Unorganised Sector (NCEUS) said in its final report submitted to Prime Minister Manmohan Singh.
The Commission headed by noted economist Arjun Sengupta observedthat instead of creating 'special enclaves' for the big andstrong on freshly acquired land, "a hard look is warrantedtowards areas that have spawned clusters of single products ormulti-products and services."
Enterprises and establishments in the Indian economy need a'level playing field' especially when a large proportion of theunits are too small to access raw materials, credit, technologyand markets at costs that are comparable to large units, it said.
NCEUS has suggested creation of 'growth poles', comprising microand small units providing them fiscal incentives at par withSEZs.
The 'growth poles' of small and micro units should receive thesame fiscal incentives as given to those operating in SEZs. Thedevelopers and infrastructure service providers should also get similar benefits, NCEUS said.
"Such support would be much more justifiable than the support received by the bigger and stronger units in SEZs," it said.
The Commission further said the actual cost of such support would not be very large, because most of these small and micro units do not pay much tax or duties now and may be liable to pay such taxes only after they reach a certain stage of development.
The micro and small enterprises provide employment to over 42million people and contribute 45 per cent of India's industrial output.

Tuesday, April 28, 2009

File SEZ pleas by May 7, HC directs petitioners

28 Apr 2009, 0242 hrs IST, TNN
PANAJI: The high court of Bombay at Goa on Monday directed all advocates appearing in petitions relating to special economic zones (SEZs) in the state to finish filing and finalise exchanging their pleadings by May 7, 2009.
A division bench of Justice B P Dharmadhikari and Justice U D Salvi made it clear that "no further adjournments would be granted". They further suggested that the petitions could be taken up for final disposal in June this year.
The court was hearing petitions filed by six SEZ promoters who have challenged the show cause notices issued by the Goa Industrial Development Corporation (GIDC).
The notices direct the promoters to stop work and revert the land allotted to them by the state government, in view of a change in the state's SEZ policy.
The 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 Ltdhave pleaded in their petitions that as they have invested heavily in the SEZ projects, they suffered huge losses due to the stop work orders issued by the state government. They prayed that the notices be quashed.
Goa Industrial Development Corporation had acquired about 3.8 million sq m of land across the state to set up SEZs. Following large scale opposition from locals to the special economic zones in 2007-08, the state was forced to rethink its policy and subsequently issued show cause notices through the GIDC.
Meanwhile, the court will, on May 7, also hear various public interest litigations filed by the villagers of Keri, Sancoale and Verna challenging the GIDC's decision to allot land in their respective villages on lease agreements for SEZs.
The villagers have complained that the land was allotted fraudulently and without public involvement in the land allotment process.


Complete pleadings by May 7, SEZ firms told
HERALD REPORTER PANJIM, APRIL 27

The Bombay High Court at Goa on Monday directed that filing and exchanging of pleadings pertaining to petitions on Special Economic Zone (SEZ) be completed by May 7, 2009.Declining to adjourn the hearing after vacations, the High Court asked counsels appearing for SEZ companies to complete the pleadings by May 7.

The Division Bench of Justices B P Dharmadhikari and U D Salvi made it clear that no further adjournments would be granted. The petitions are likely to be taken up for final disposal after vacations.

The 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 the High Court. They have challenged the show cause notices issued to them by Goa Industrial Development Corporation (GIDC) for withdrawing the land allotted in industrial estates.

The GIDC decided to take back the land allotted after the State Government reversed its decision of allowing SEZs in Goa when it realized that people will oppose SEZs tooth and nail. It was the first major decision of chief minister Digambar Kamat despite having pro-SEZ ministers in the cabinet.

The GIDC has come under cloud over allotment of to SEZ developers . – it has been directly indicted in Comptroller and Auditor General (CAG) report. The CAG has revealed poor financial management and irregularities conducted by GIDC in allotment of land. Deficiencies and irregularities resulted a loss of Rs 127.25 crore to the Corporation, says the report Allotment of land to SEZ projects was blatantly irregular. The Corporation allotted 38.41 lakh sq meter land for setting up seven SEZs at three of its industrial estates at Verna, Sancoale and Keri.Contention of the petitioners is that as they have invested heavily in SEZ projects and suffered huge losses due to the stop work orders of the government.

On the other hand a couple of Public Interest litigations (PILs) filed by villagers of Keri, Sancoale and Verna, challenging GIDC’s decision to allot land in their respective villages on lease agreements to SEZs stakeholders, are also pending before the High Court. Their charge is GIDC fraudulently allotted land to SEZ developers.

Tuesday, April 14, 2009

SVM demands registering FIR against IDC directors

SVM demands registering FIR against IDC directors
Challenges GCCI president on employment of Goans
HERALD REPORTER
PANJIM, APRIL 13
Citing the report of Comptroller and Auditor General, SEZ Virodhi Manch on Monday pressed for the much-awaited registering of the FIR against those in the Goa Industrial Development Corporation who are responsible for the alleged and fraudulent process of land allotment for SEZs in Goa.
Addressing a press conference in the city Monday, SVM Convenor Charles Fernandes said the stand of SVM had been vindicated as the CAG report had exposed the fraudulent process of land allotments by the GIDC. The CAG report has observed: No system exists to assess the requirement in accordance with any specific project of its own or local demand of industries and allotments are made without any transparent selection procedures. Audit noticed irregularities in 86 allotments (46.24 lakh sq m) involving loss of revenue of Rs 102.64 crore.
Charles said since October 22, 2007, complaints were filed at various police stations against the fraud backed by documents procured under RTI from the GIDC to uncover the big scam. At the same press conference today, SVM strongly condemned the reported statements made by Goa Chamber of Commerce and Industry President Nitin Kuncolienkar who criticised Goans for opposing the SEZ fraud.
Social activist Pravin Sabnis, who was present, alleged that Kuncolienkar was very much a part of the process of land allotments for SEZs which in reality was a real estate scam.
SVM has challenged the GCCI president to publish the percentage of Goan youth employed in the 22 industrial estates existing in the State before favouring more industries.
It further challenged Kuncolienkar to do away with the contract labour system and regulated the minimum wages in the existing industrial estates.
Convenor of Jagrut Goem Aravind Bhatikar, who remained present at the briefing, also took potshots at GCCI. General Secretary of Council for Social Justice & Peace Fr Maverick Fernandes was also present.
Meanwhile, the petitions by different villagers against the land scam are coming up for hearing on April 27. Working President SVM Franky Monteiro said they would wait for the authorities to take the desired action in the case and if nothing happened soon after the Lok Sabha election they would go on agitation mode.

SVM Press Note:

(press conference held on 13 April 2009)
The SEZ Virodhi Manch (SVM) strongly condemns the reported statements of the GCCI President Nitin Kuncolienkar who has supported SEZs in Goa and has made malicious accusations against Goans who are opposing the fraud of SEZs.

Mr Kuncolienkar's stance is not surprising since he has been an integral part of the process and system that manipulated and subverted legality while acquiring and allotting land for SEZs in Goa. Mr Kuncolienkar seems very concerned about over one lakh unemployed youth in the State for the benefit of whom he intends setting up additional Industrial estates/Industries/Sez’s in Goa. SVM would highly appreciate if Mr Kuncolienkar could publish the percentage of goan youth employed in the 22 Industrial Estates existing in the State. The primary issue Mr Kuncolienkar should tackle on priority is to abolish contract labour system and regulate the minimum wages in the existing Industrial Estates/Industries before harping on additional Industries/SEZ’s.

SVM would also want the people in the State to know the quantum of land acquired by GIDC for the 22 Industrial Estates and the actual area granted to goan entrepreneurs/small scale industries and the area allotted to Industrial giants/Multi National companies. Goa doesn’t need development in the form of Industries alone and moreover without planning required infrastructure for the same, e.g an area of over 30 lakh sq. mts. is decided to be acquired by GIDC for phase IV of Verna Industrial Estate in 1996 when the process of acquisition of 13.67 lakhs sq. mts. for Phase III is not even complete.

The SVM stand has been further vindicated by the report of the Comptroller and Auditor General of India, which have exposed major discrepancies in acquisition and allotment of land by the GIDC with regards to SEZs in Goa. The CAG has observed: No system exists to assess the requirement in accordance with any specific project of its own or local demand of Industries and allotments are made without any transparent selection procedures. Audit noticed irregularities in 86 allotments (46.24 lakh sq. mts.) involving loss of revenue of Rs. 102.64 crores.

The SVM demands for the prosecution against all authorities and individuals involved in the sins of omission and commission in the fraudulent process of allotment of land for SEZs in Goa. The Government of Goa, by only paying lip service to the opposition of the Goans to the fraud of SEZs, is obviously seeking to make a fool of Goans who have unanimously opposed SEZs. Since 22 October 2007, complaints were filed at various Police Stations, against the fraud of the process of application and allotment of land to SEZ promoters for setting up SEZs. The complaints were backed with documents procured (under RTI) from the GIDC to uncover the illegal and immoral scam of the SEZ’s in Goa.

The SVM demands that the Goa Police should avoid the delay tactics and immediately register the FIR, especially since the CAG itself has exposed the blatant irregularities in the case. The SVM also demands that all the officers of the GIDC, who are involved in the facilitation of the fraud should be placed under suspension and they should be prosecuted for their crimes. Similarly action has to be initiated against all the companies and Govt. authorities who manipulated the process for getting approval for the SEZ’s in Goa.

The SVM will be meeting the Governor and various other authorities to initiate action against those involved in the SEZ land scam. The SVM will also start a series of protests as well as awareness campaigns.

Yours truly,
Charles Fernandes
Convenor - SVM

Thursday, March 26, 2009

SEZ SINS EXPOSED

http://www.oheraldo.in/pagedetails.asp?nid=19217&cid=10
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.

http://www.navhindtimes.com/story.php?story=200903269
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”.

Wednesday, March 25, 2009

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.

http://www.thaindian.com/newsportal/business/auditor-slams-goa-government-over-special-economic-zones_100171193.html