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MUMBAI: The Satyam scandal is back to haunt the Maharashtra government with the Comptroller and Auditor General of India (CAG) reporting ‘undue’ favours granted to the company that cost the state at least Rs 20 crore. The state-run agency Maharashtra Airport Development Company Limited (MADCL) allegedly sold huge tracts of land to Satyam in Multimodal International Hub Airport (MIHAN) project at Nagpur at much lower rates, the CAG has pointed out. It, however, is no coincidence that RC Sinha, MD, MADCL—the nodal agency for the project—was also the chairman of the tainted Satyam subsidiary, Maytas Infrastructure. “MADCL allotted 100 acre to Satyam at Rs 18 lakh per acre against applicable rate of Rs 24.28 lakh,” the report said. The land was given to Satyam to set up an IT company at MIHAN on December 5, 2005. MADCL defended the decision by describing it as an “early bird” offer. But the CAG report, released recently, has exposed how hollow MADC’s claim was. On the same day, another deal was signed for 100-acre of land at MIHAN to Shapoorji Pallonji and Company Limited. However, the latter was charged Rs 26.30 lakh per acre. “The sale of land to Satyam at lower rate was not justifiable and it resulted in a loss of revenue of Rs 6.28 crore to MADCL owing to undue benefit offered to Satyam,” the CAG report said. Satyam was also given over 28 acres of additional land on March 3, 2007 without the approval of the competent authority at Rs 22.35 lakh per acre while the market price during 2005-06 was Rs 72 lakh per acre, the report highlights. “The allotment of additional land without the approval of competent authority at less than the prevailing market price of land was irregular and resulted in loss of revenue of Rs 13.93 crore,” it said. Meanwhile, Vidarbha Janandolan Samiti (VJAS) has dashed off a letter to Prime Minister Manmohan Singh demanding a CBI probe into the whole issue. It was the VJAS that had first questioned RC Sinha’s dual role on January 10, 2009. |
Friday, July 30, 2010
MADCL granted undue favours to Satyam: CAG-Economic Times
MADC under fire over land allotment-TIMES OF INDIA
MIHAN CRISIS-MADC under fire over land allotment-TOI Reports
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‘First City’ violates BoA directive about purchasers-VJAS seeks PM’s intervention -Hitavada Reports
First City’ violates BoA directive about purchasers-VJAS seeks PM’s intervention -Hitavada Reports
“It is surprising to note that how the land which is meant for residential accommodation of working professional at SEZ has been given to Reatox Company for sale/lease in open market to investors and capitalists who all have invested crores of rupees in the said township? This all needs to be probed by CBI and all culprits need to be booked under relevant provisions of law for cheating the public at large, especially the Project Affected People - Farmers of the regions
‘First City’ violates BoA directive about purchasers
Staff Reporter
Nagpur-30th July 2010
“The representative of Maharashtra Airport Development Company (MADC) made a brief presentation on the requests of the authorized operations in the SEZ, indicating the quantum and justifications of these activities. He also informed that about approximately 1,20,000 employees will be serving in this SEZ when fully developed. After deliberations, the Board approved following activities/operations in the SEZ for 100% consumption of the SEZ users: Housing Phase I as per the plan provided by the developer with total number of 2082 flats with a built up area of 2,75,000 square meters.” (Page 4- Minutes of the 16th meeting of the SEZ BoA held on August 8, 2007)
This revelation comes in the minutes of 16th meeting of the Board of Approvals (BoA) held on August 8, 2007. It clearly reveals that First City project of M/s Reatox Builders routed through MADC was approved by BoA with a clear understanding that all the residential dwellings so constructed would be sold to employees working in SEZ.
The BoA had also approved construction of 10,000 houses in Phase-II total built up area not exceeding 17,00,000 sq mt, again with crystal clear direction that same would be available for persons directly connected with SEZ.
Thus, there was no ambiguity about end-users of housing projects coming up within non-processing zone of the notified SEZ area. Ignoring this fact, the developer (MADC) permitted all co-developers including M/s Reatox Builders to sale flats built by such co-developers to public and MADC had issued power of Attorney to such co-developers for such sale, the BoA recorded in its minutes with a stern directive to remove such “condition of sale from agreement” while granting co-developer status to M/s Reatox Builders.
It may be recalled that MADC, Developer of the MIHAN SEZ in Nagpur, had requested for transfer of approval in respect of authorised operations in favour of M/s Reatox Builders and Developers Private Limited. The matter came up before BoA during its meeting held on July 13. The BoA after deliberations, decided to grant approval for transfer of the authorised operations, earlier granted to the developer, in favour of the co-developer, subject to the condition that the ‘Condition of Sale’ is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.
The authorised operations include housing phase-I as per the plan provided by the Developer with total number of 2082 flats with a built up area of 2,75,000 square metres, low income houses, convenient shopping units, 180 houses with a total area of 11,312 square metres, and Club House in the housing phase-I with an area of 2,035 square metres. M/s Reatox Builders and Developers Private Limited was approved as a co-developer vide LoA dated January 5, 2009.
The ‘First City’ project was launched with much fan-fare on November 4, 2007 and was expected to be completed within 27 months as per the term of lease. Initially, ‘First City’ was to have 12 building of 18 floors each. However, the Airports Authority of India raised strong objection to such a height stating that project was situated in funnel area of airport and would pose danger to aircraft’s landing at Nagpur airport. This forced M/s Reatox to lower the height by five floors and redesign the project.
Interestingly, M/s Reatox Builders and their marketing company Disha Direct had claimed that flats are available for Nagpurians and have undertaken a special drive to sell these flats to general public ignoring the clear and consistent directives of BoA.
Vidarbha Jan Andolan Samiti has sought immediate intervention of Prime Minister Dr. Manmohan Singh in the matter of allotting land inside the SEZ to real estate companies like M/s Reatox Builders and Developers Private Limited at a throwaway price. In a letter addressed to the Prime Minister, VJAS Chief Kishor Tiwari has levelled serious charges against promoters of MIHAN-SEZ for favouring M/s Reatox Builders and for turning nelson’s eye towards brazen violation of SEZ Act and rules by promoters of First City project by utilising land acquired from farmers for peanuts to earn huge profits.
VJAS has also demanded a CBI probe and alleged that land given to M/s Reatox Builders, promoter of First City was a “glaring example of gross misconduct in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses, at a throwaway price to M/s Reatox due to closed link with politicians.”
“It is surprising to note that how the land which is meant for residential accommodation of working professional at SEZ has been given to Reatox Company for sale/lease in open market to investors and capitalists who all have invested crores of rupees in the said township? This all needs to be probed by CBI and all culprits need to be booked under relevant provisions of law for cheating the public at large, especially the Project Affected People - Farmers of the regions,” VJAS demanded.==============================
“It is surprising to note that how the land which is meant for residential accommodation of working professional at SEZ has been given to Reatox Company for sale/lease in open market to investors and capitalists who all have invested crores of rupees in the said township? This all needs to be probed by CBI and all culprits need to be booked under relevant provisions of law for cheating the public at large, especially the Project Affected People - Farmers of the regions
‘First City’ violates BoA directive about purchasers
Staff Reporter
Nagpur-30th July 2010
“The representative of Maharashtra Airport Development Company (MADC) made a brief presentation on the requests of the authorized operations in the SEZ, indicating the quantum and justifications of these activities. He also informed that about approximately 1,20,000 employees will be serving in this SEZ when fully developed. After deliberations, the Board approved following activities/operations in the SEZ for 100% consumption of the SEZ users: Housing Phase I as per the plan provided by the developer with total number of 2082 flats with a built up area of 2,75,000 square meters.” (Page 4- Minutes of the 16th meeting of the SEZ BoA held on August 8, 2007)
This revelation comes in the minutes of 16th meeting of the Board of Approvals (BoA) held on August 8, 2007. It clearly reveals that First City project of M/s Reatox Builders routed through MADC was approved by BoA with a clear understanding that all the residential dwellings so constructed would be sold to employees working in SEZ.
The BoA had also approved construction of 10,000 houses in Phase-II total built up area not exceeding 17,00,000 sq mt, again with crystal clear direction that same would be available for persons directly connected with SEZ.
Thus, there was no ambiguity about end-users of housing projects coming up within non-processing zone of the notified SEZ area. Ignoring this fact, the developer (MADC) permitted all co-developers including M/s Reatox Builders to sale flats built by such co-developers to public and MADC had issued power of Attorney to such co-developers for such sale, the BoA recorded in its minutes with a stern directive to remove such “condition of sale from agreement” while granting co-developer status to M/s Reatox Builders.
It may be recalled that MADC, Developer of the MIHAN SEZ in Nagpur, had requested for transfer of approval in respect of authorised operations in favour of M/s Reatox Builders and Developers Private Limited. The matter came up before BoA during its meeting held on July 13. The BoA after deliberations, decided to grant approval for transfer of the authorised operations, earlier granted to the developer, in favour of the co-developer, subject to the condition that the ‘Condition of Sale’ is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.
The authorised operations include housing phase-I as per the plan provided by the Developer with total number of 2082 flats with a built up area of 2,75,000 square metres, low income houses, convenient shopping units, 180 houses with a total area of 11,312 square metres, and Club House in the housing phase-I with an area of 2,035 square metres. M/s Reatox Builders and Developers Private Limited was approved as a co-developer vide LoA dated January 5, 2009.
The ‘First City’ project was launched with much fan-fare on November 4, 2007 and was expected to be completed within 27 months as per the term of lease. Initially, ‘First City’ was to have 12 building of 18 floors each. However, the Airports Authority of India raised strong objection to such a height stating that project was situated in funnel area of airport and would pose danger to aircraft’s landing at Nagpur airport. This forced M/s Reatox to lower the height by five floors and redesign the project.
Interestingly, M/s Reatox Builders and their marketing company Disha Direct had claimed that flats are available for Nagpurians and have undertaken a special drive to sell these flats to general public ignoring the clear and consistent directives of BoA.
VJAS seeks PM’s intervention
Vidarbha Jan Andolan Samiti has sought immediate intervention of Prime Minister Dr. Manmohan Singh in the matter of allotting land inside the SEZ to real estate companies like M/s Reatox Builders and Developers Private Limited at a throwaway price. In a letter addressed to the Prime Minister, VJAS Chief Kishor Tiwari has levelled serious charges against promoters of MIHAN-SEZ for favouring M/s Reatox Builders and for turning nelson’s eye towards brazen violation of SEZ Act and rules by promoters of First City project by utilising land acquired from farmers for peanuts to earn huge profits.
VJAS has also demanded a CBI probe and alleged that land given to M/s Reatox Builders, promoter of First City was a “glaring example of gross misconduct in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses, at a throwaway price to M/s Reatox due to closed link with politicians.”
“It is surprising to note that how the land which is meant for residential accommodation of working professional at SEZ has been given to Reatox Company for sale/lease in open market to investors and capitalists who all have invested crores of rupees in the said township? This all needs to be probed by CBI and all culprits need to be booked under relevant provisions of law for cheating the public at large, especially the Project Affected People - Farmers of the regions,” VJAS demanded.
Mihan-First City’ Multi Crore Scam -Maharashtra chief minister ordered probe-VJAS
‘Mihan-First City ’ Multi Crore Scam -Maharashtra chief minister ordered probe-VJAS
http://vidarbhatimes.blogspot.com/2010/07/mihan-first-city-multi-crore-scam.html
Acting promptly on the complaint (Attached) filed by Vidarbha Janandolan Samiti(VJAS) regarding multi crore land scam in Nagpur Mihan project by Mumbai base builder M/s Reatox Builder and Developers scam ,Maharashtra Chief Minister Ashok Chavan has ordered probe in all irregularities and corruption in the matter related illegal ‘sale of flats to the private public ,totally reserved for the employees working in MIHAN-SEZ area as per existing union Govt. law of SEZ, Kishor Tiwari of VJAS informed in press release today .As par communiqué received to VJAS Principal Secretary (Industries) A.A.Khan was initially asked to probe the matter by Maharashtra Chief Minister Ashok Chavan. But as issue is related to General Administration, he has forwarded the original complaint to Principal Secretary (GAD)
“Out of the area that is being utilised for establishing Special Economic Zone, an area admeasuring 31 acres of land is being developed by M/s Reatox Builder and Developers, under power of attorney executed by the respondent no 1 (MADC) for construction of residential complex to accommodate employees/officers working in Special Economic Zone.”
This is what the Maharashtra Airport Development Company (MADC) had told Nagpur
I QUOTE
VIDARBHA JANANDOLAN SAMITI
11, Trisaran Society, In front of Somalwar School , Khamla, Nagpur
Tel No. (07235) 227387/ 227564 Mob No. 9422108846 / 9822593943
==========================================
Ref: VJAS/PMO/591/2010 21/07/2010.
MOST URGENT
To,
Ashok Chavan
Hon'ble Chief Minister
Mantralaya
Munbai-400 032
IN THE MATTER OF -
MADC- MIHAN SEZ PROJECT'S PRIME LAND MEANT FOR THE RESIDENTIAL ACCOMODATION OF SEZ EMPLOYEES & FAMILIES OF WORKING PROFESSIONAL IN SEZ HAS BEEN ILLEGALLY GIVEN TO REAL ESTATE COMPANY - Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, IN A THROWAWAY PRICE BY MADC VC & MD MR. SINHA WHO IS ACCUSED OF INSTRUMENTAL FOR CORRUPTION & GROSS MISUSE OF POSITION-POWER TO the TUNE OF CRORES OF RUPEES !
SATYAM’S-MAYTAS COMPANY EX-CHAIRMAN R.C. SINHA’S ROLE AS
MADC - MIHAN SEZ PAP-Farmers are till dying – rural economy is on the verge of collapse!
“Would you please spare few minutes ON THE MOST SERIOUS ISSUE OF CORRUPTION & GROSS MISUSE OF POWERS BY MADC’S VICE-CHAIRMAN & M.D. MR. R.C. SINHA TO GIVE ADVANTAGE TO SATYAM’S-MAYTAS COMPANY & Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, BENEFITING DUE TO HIS DIRECT INVOLVEMENT IN AWARD OF CONTRACTS WORTH CRORES OF RUPEES IN LIEU OF HELP RENDERED TO CORPORATES IN MADC’S MIHAN PROJECT BY R.C. SINHA AS ITS VICE-CHAIRMAN & M.D. !"
WHO IS RESPONSIBLE FOR DIRECT LOSS OF REVENUE TO THE TUNE OF CRORES OF RUPEES GOVERNMENT / PUBLIC FUNDS CAUSED IN THE ENTIRE PROJECT OF MADC - MIHAN SEZ ?
ARE THESE NOT SERIOUS CASES OF CORRUPTION & MISUSE OF POWERS BY HIGH PROFILE PERSONS LIKE SINHA ?
unfortunate PROJECT AFFECTED farmers HAVE BEEN EXPLOITED AND VIRTUALLY THROWN in extreme distress and due to complete failure of MAHARASHTRA Govt. TO CHECK THE CORRUPTION & MISUSE OF POWERS.
Ref:NEXUS BETWEEN POLITICIANS- MIHAN-MADC’S VICE-CHAIRMAN & MANAGING DIRECTOR MR. R.C. SINHA, WHO WAS CHIEF OF SATYAM’S-MAYTAS COMPANY & THIS ENTIRE LINK USED TO BENEFIT Reatox Builders & Developers Pvt. Ltd, promoter of First City
Respected HH Hon’ble Rashtrapati Mahodaya,
You are well aware that, since last one decade our organization–
Vidarbha Jan Andolan Samiti, is raising the issue of plight of poor farmers who are in extreme distress & suffering the heat of failure of Govt. policies of Liberalization / Globalization / Free Economy, which has resulted in complete collapse of Indian Rural Economy and perhaps unfortunately Vidarbha Region has been termed as Epicenter of farmers suicides and is till witnessing a live lesson to learn.
From the days Honourable Manmohan Singhji occupied the Office of Prime Minister of India India
Hon’ble President Madam, with this representation, we invite your kind attention towards most serious issue of Gross Corruption & misuse of power by the high profile persons in the name of development & infrastructure building in Vidarbha at Nagpur through the project like MADC’s MIHAN - SEZ which was being projected as so called “Global & Vision Project” of Vidarbha, an epicenter of Farmers Suicides in which thousands of farmers have killed themselves. Host of the Project Affected Persons (PAP) and Farmers on the verge of losing their lives. The information received from the inside sources is alarming and quite shocking. We want to share it with you and demand detailed CBI enquiry into the affairs of MADC’s MIHAN Project and corruption-misuse of power-favoritism which caused loss of revenue to the tune of crores of rupees of the public exchequer. One of such glaring example of gross misconduct in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses given to M/s Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, at throwaway price by the blessing of MADC VC & MD Mr. R.C.Sinha who has closed links with politicians who are behind the promoter of said Real Estate Company Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ. This land allotment to M/s Reatox was done without framing any Land Disposal Rules by the MADC nor calling any competitive bids. The entire land has been sold / given on 99 years long lease (as good as sale) to the said Reatox Company by MADC on such a throwaway price, that cannot be imagine by common man, whereas said Reatox Company now selling the flats to public atlarge on Rs. 40,000/- per sq.m. and that too the unrelated persons other than SEZ employees. Such land disposal and its sale or long lease is against the norms of Government Control Companies. The entire process adopted by MADC is highly objectionable and is the case of gross misconduct to cause grave loss to the public funds and the Government Revenue. As per the information made available by MADC, upto 31.01.2010, MADC has spent Rs. 728.63 Crores on the infrastructure of the project. Out of which, only Rs. 9.02 Crores has been spent on Social Infrastructure for Project Affected People, this shows how casually the Project Affected People are being treated. On the other hand, multinational and corporates have been given due advantage of land sold / given on 99 years long lease (as good as sale) on throwaway price without recovering any cost of infrastructure being developed at the cost of several hundred crores from the treasury of State Government and/or the funds being made available from the financial institution controlled by the Government of India or PSUs.
Details are as under :-
i) Government of Maharashtra under the Chairmanship of Chief Minister of the State has formed a company named “Maharashtra Airport Development Authority Ltd.” (MADC) under the provisions of Companies Act, 1956 in which many Government / Public Undertakings have been forced to contribute as share capital. Ex-Bureaucrat-Mr. R.C. Sinha, Retd I.A.S. was made Vice-Chairman & Managing Director of MADC with many top ranking IAS Officials were named as Directors on BOD of MADC Ltd., which started implementing big project in the name of MIHAN Near Nagpur and started projecting the said project as “Global & Vision Project” of Vidarbha.
Under the disguise of Global Infrastructure Development in Vidarbha so called Vision Project-MIHAN-SEZ-HEALTH CITY-LOGISTIC TERMINAL- TOWNSHIP
ii) One of such glaring example of gross misconduct in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses given to M/s Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, at throwaway price by the blessing of MADC VC & MD Mr. R.C.Sinha who has closed links with politicians who are behind the promoter of said Real Estate Company Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ.
iii) Other Corporate-Multinational Beneficiary of such land allotment were as under :-
Satyam – 130 Hectors,
HCL – 140 Hectors, Wipro – 117 Hectors,
Vipul & Karamchand – 50 Hectors,
Reatox – 60 Hectors, Residential First City Project of REATOX Ltd., a company of BJP Leader,
HCL – 31 Hectors,
SICOL Logistics Gupta Coal – 80 Hectors,
Ambuja Realities – 55 Hectors,
Kolland – 100 Hectors,
L&T Infotex – 50 Hectors,
TCS – 54 Hectors,
Ascend – 60 Hectors,
DFL – 140 Hectors,
Boing – 45 Hectors,
iv) The bare perusal of the beneficiary reveal that the allotment was made to the favoured without even completion of acquisition & ownership was reserved illegally without following due process of law. The irregularity were committed while allotting SEZ Land to the residential project of the said First City of Reatox Company, which was later disallowed by SEZ Board of Ministry of Commerce, Government of India, but the prime land was sold to many parties illegally and unauthorisedly. Even Bank Loan to the tune of crores of ruppes were raised by such companies under the disguise of ownership of land allotment by MADC. On the contrary, MADC was still to become lawful owner of the land at the time of such allotment made to the beneficiary company. This all has completed in a gross irregular manner contrary to the provisions of the MADC aims and objectives and the Rules governing disposal of land by the Government controlled companies in which Chief Minister is involved as a Chairman of MADC Ltd..
v) It is also matter of great surprise that most of the IT Companies in MIHAN Project which got huge chunk of land disproportionate to their requirement for IT Projects, generally requires very small land of 10 to 20 Acres are not turned up and not even started their operations even after many years of allotment. Thus, in MIHAN Project, the beneficiaries have got several hectors of land in few bucks, thanks to the element of corruption, favouritism, misuse of power and position by the Big Wigs in MADC Ltd. and the Politicians who all are helping said projects in turn getting benefits from Corporates at the cost of poor farmers who lost their valuable lands and means to live respectful lives. The entire process of huge allotment of land on throw away prices to the Big Corporates is a matter of great concern. It is quite strange that MADC sold the pieces of huge chunk of land to Corporates in the primary stage itself, without even recovering any development cost of the project including basic cost of land. If we calculate the cost of acquisition of land, development, cost of infrastructure, environment and other overheads, even lay man can analyse how costing / pricing has been ignored by MADC Authorities while making allotment of land to such Corporates, in which Government Funds and Revenue has been lost. This all needs to be thoroughly probed in a sequential & transparent manner to punish the culprits behind the racket.
vi) It is shocking to note that in continuation to the series of gross misconduct, authorities of MADC - MIHAN SEZ went ahead in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses given to M/s Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, at throwaway price by the blessing of MADC VC & MD Mr. R.C.Sinha who has closed links with politicians who are behind the promoter of said Real Estate Company Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ. It is surpirising to note that how the land which is meant for residential accommodation of working professional at SEZ has been given to Reatox Company for sale / lease in open market to investors and capitalist, who all have invested crores of rupees in the said township ? This all needs to be probed by CBI and all culprits need to be booked under relevant provisions of law for cheating the public atlarge, especially the Project Affected People - Farmers of the regions.
vii) It is also shocking to note that Sometime in 2007, MADC Vice-Chairman & MD Mr. R.C. Sinha managed to become Chairman of Maytas Company, which was promoted by one Mr. Raju, Satyam Managing Director’s son. Interesting Satyam is the beneficiary of the land allotment at MADC’s MIHAN Project. After becoming Chief of BOD of Maytas Company, started playing game of misuse of powers & position. On one hand Mr. Sinha was providing benefits of MADC’s MIHAN Project to Corporates and on the other hand said Corporates were mysteriously giving contracts including EPC Contracts to Maytas company, for the obvious reasons.
viii) The misuse of powers and the positions at the hands of Mr. R.C. Sinha is quite interesting. For e.g. SICOL Logistics-Gupta Coal had got contract for MADC’s Rail & Logistic Terminal, on the other hand Maytas company got EPC Contract worth Rs. 450 Crores from Guptas. There were several examples like this. Mr. Sinha had become Director on the Board of Ambuja & Indu Projects, the direct & indirect beneficiaries of MIHAN Project of MADC Ltd. and now left these companies. The land allotted has been misused by over valuation in raising funds from the financial institutions by these companies in which involvement of MADC Officials is clearly seen. Now the land thus allotted are till lying unused without any projects coming thereon.
ix) Family Members, Relatives, Politicians blessed by VC & MD of MADC Ltd were the direct & indirect beneficiaries of the Corporates to whom MADC favoured at MIHAN Project & its SEZ either in allotment of land or otherwise. If you examine the share holders list and other business interest of these Corporates, the family members, relatives, closed friends and politicians blessed by VC & MD of MADC Ltd., you will come to know the truth. Hence this need to be probed by independent CBI probe and culprits are to be booked immediately in the interest of Project Affected People - Farmers near Nagpur
x) The assets & properties built by the relatives, family members, closed friends and politicians blessed by VC & MD of MADC Ltd. either in India or overseas specially in United States and Switzerland including Bank accounts in Swiss Bank will speak about amazing wealth acquired disproportionate to the known source of income directly in contravention of the provisions of Prevention of Corruption Act & other penal / criminal provisions of the Laws of the Land including violation of the provisions of Companies Act, 1956, FEMA Act and Income Tax-Wealth Tax Act.
xi) In such a way, Vice-Chairman & MD of MADC Mr. R.C. Sinha helped many corporates like Maytas company in which he was Chairman, Ambuja & others in which he or his family members, relatives, close friends were directly or indirectly involved. The misuse of position and power to give benefit and pecuniary advantages to the company in which he has direct personal interest is nothing but a matter of open corruption. The revenue loss caused to the public fund due to favouratism is a great matter of national concern.
xii) The entire affairs at MADC Limited vis-Ã -vis advantages gained by Maytas, Reatox and other beneficiary companies directly or indirectly with the influence, misuse of power & position by the person directly involved in both the entities, give signals of open corruption which needs to be thoroughly probed and punished under the provisions of Laws of the Land, so that common man could not loose faith & belief in Rule of Law.
xiii) Now, the root question raised in our mind that WHO IS RESPONSIBLE FOR DIRECT LOSS OF REVENUE TO THE TUNE OF CRORES OF RUPEES GOVERNMENT / PUBLIC FUNDS ? ARE THESE NOT SERIOUS CASES OF CORRUPTION & MISUSE OF POWERS BY HIGH PROFILE PERSONS LIKE SINHA ? Why the Projects have not come up in the said MIHAN - SEZ project ? These vital questions need to be answered by the independent enquiry.
xiv It is highly regretted that lacs of small investors are being cheated in Nagpur
Hon'ble HH President Mahodaya, Vidarbha agrarian crisis coupled with gross corruption in the vision project like MIHAN is a live example of how we are proceeding in a Global Economy in which issues of Rural India, Project Affected People & Farmers have thrown to back benches.
We will be highly obliged, if you could spare few minutes to ON THE MOST SERIOUS ISSUE OF CORRUPTION & GROSS MISUSE OF POWERS BY MADC LTD VICE-CHAIRMAN & M.D. TO GIVE ADVANTAGE TO REATOX BUILDERS, SATYAM’S-MAYTAS & OTHER COMPANIES BENEFITING DUE TO HIS DIRECT INVOLVEMENT IN AWARD OF CONTRACTS WORTH CRORES OF RUPEES IN LIEU OF HELP RENDERED TO CORPORATES IN MIHAN BY R.C. SINHA.
We hope you will consider our request and order immediate CBI Enquiry, as the funds from Central Government and the PSU Controlled by Central Government alongwith State Undertaking are involved in the Project MIHAN - SEZ of MADC Limited in which Mr. R.C. Sinha is involved. In fact, a complete white paper on the facts & figures is needed in this grave case, involving high ranking bureaucrats, politicians & big Corporates.
We also pray for personal hearing and opportunity of adducing evidence to demonstrate our case.
Hence prayed accordingly.
Yours faithfully,
For VIDARBHA JANANDOLAN SAMITI,
KISHORE TIWARI,
PRESIDENT
CC to :
1. Her Highness Hon'ble Dr. Hamid Ansari ,
Vice President of India
Rashtrapati Bhavan,
Raisina Hills, New Delhi-110 011.
2. Hon'ble Governor of Maharashtra State
Malbar Hills, Mumbai
3. Hon'ble Prime Minister of India
Govt. of India , PMO, NEW DELHI
4. Hon'ble Chief Secretary, Govt. of Maharashtra ,
Mantralaya, Mumbai-400 032.
UNQUOTE
As report published by local leading dailyy it is reported that the affidavit was filed by MADC in response to a petition filed by M/s Suretech Hospital First City
In the instant case, M/s Suretech had claimed that its land was required for constructing a hospital and research centre and that MADC had ample land already acquired and same could be used for rehabilitation of MIHAN PAPs. It was suggested that land allotted to M/s Reatox Builders within MIHAN-SEZ can be utilised to construct houses for villagers displaced by MIHAN-SEZ.
However, the MADC opposed the prayer stating that “a policy decision has been taken to rehabilitate project affected persons from the area falling in NMC limits in Chinchbhuvan village which is situated within NMC limit. Regarding the project-affected persons falling outside NMC limits, the respondent no 1 (MADC) has decided to resettle them in village Khapri Rly which is situated beyond the NMC limits.” Against this backdrop, the MADC had informed the High Court that land developed by M/s Reatox Builders inside SEZ area (First City Project) is essentially to create residential complex to accommodate employees/officers working in the Special Economic Zone.
The ‘First City First City Nagpur
Apart from objections raised by Airports Authority of India (AAI), the First City Project is also facing another hurdle, since the Board of Approvals (BoA) has directed the MADC which is developer of SEZ and M/s Reatox Builders which has received approval as co-developer to remove condition of sale from its agreement and power of attorney granted by MADC in favour of M/s Reatox Builders.
Ironically, the BoA stand which is based on provisions of SEZ Act and Rules was also adopted by MADC before the High Court in which it categorically stated that First City Project was meant to house people directly connected with SEZ. The SEZ Act clearly states, “The Developer shall not sell the land in a Special Economic Zone..” and rules also stipulate that residential units should be primarily sold to persons connected with SEZ activities. Therefore, the Board of Approvals (BoA), the apex decision making body for SEZ has consistently maintained that no developer or co-developer can sell the land or residential dwelling to general public and extended this principle to ‘First City’ coming up at multi product MIHAN-SEZ promoted by MADC, during its recent meeting held on July 13.
The minutes of the meeting clearly mentioned that BoA raised objection over “agreement of MADC with all its co-developers which contained the condition that the flats built by such co-developers would be sold by them to public and MADC has issued Power of Attorney to such co-developers for such sale.” The BoA has directed the MADC remove condition of sale from its agreement with co-developers (in the instant case M/s Reatox Builders)
VJAS moved for urgent intervention of Indian president and prime minister to expedite the action of cancellation of land allotment and subsequent flats allotment to legitimate claimant MIHAN-SEZ promoted by MADC as per SEZ laws and rules framed thereinafter, Tiwari added.
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Thursday, July 29, 2010
Satyam Scam : Maytas Infra ex-Chairman R.C. Sinha misleading ,admits to hold directorship of two other MADC beneficiaries companies
Satyam Scam : Maytas Infra ex-Chairman R.C. Sinha misleading ,admits to hold directorship of two other MADC beneficiaries companies
NAGPUR-29JULY 2010
Whole vidarbha has been shocked to learn the news that the main man behind MIHAN - Multi-modal International Cargo Hub and Airport at Nagpur Shri. R.C. Sinha, I.A.S. presentely working as Vice Chairman & Managing Director, Maharashtra Airport Development Ltd. (MADC)Company in the ranking Addl. Chief Secretary, Govt. of Maharashtra has resigned as chairman of Maytas Infra Pvt.Ltd. as Maytas Infra is company owned by family members of Satyam Computer Services founder and ex.chairman Ramlinga Raju who has alleged to siphoned out Rs.7000 crore for real estate business and Ramalinga Raju's son Teja Raju is the vice-chairman and chief executive of Maytas Infra., defended himself saying Satyam deal had helped push Mihan. He denied there was any conflict of interest in his heading Mihan and also being chairman of Maytas Infrastructure, a company owned by Satyam promoters. He reiterated that he had disclosed his position in Maytas to the "full board" of the MADC. He said "full board" meant even the chief minister, who is ex-officio chairman, attended the meeting. However, the then chief minister Vilasrao Deshmukh had clarified that he was not aware of Sinha's Maytas connection.
MADC managing director R C Sinha has come out with shocking admission that he is till director of Indu Developers Similarly, he has been on Bengal Ambuja board for eight years. This company is a joint venture between West Bengal Housing Board and the Gujarat Ambuja Cements Limited. Indu Developers and Ambuja Realty are reported to have been allotted Mihan land at much cheaper rates but MADC managing director R C Sinha says that there was no clash of interest .
‘Infact companies in which MADC managing director R C Sinha is associated have been benefited ,it matter of pure misuse of power and multi thousand corruption hence we are asking for probe over the matter’ Kishor Tiwari president ( Vidarbha Jan andolan Samiti) asked in a press note today as earlier he in letter to Maharashtra Chief Minister Ashok Chavan asked to arrange C.B.I. enquiry in to involvement of very senior retd. I.A.S officer till working on special duty on sensitive project like MIHAN in which Maytas Infra has been given big land by Maharashtra Airport Development Ltd. (MADC) controlled by Shri. R.C. Sinha.
VJAS has objected the duel status of Shri. R.C. Sinha, as as Vice Chairman & Managing Director, Maharashtra Airport Development Ltd. (MADC) and chairman of Maytas Infra Pvt.Ltd and raised issue of legitimate permission and morality as MIHAN - Multi-modal International Cargo Hub and Airport at Nagpur is dream project of all politicians expecting creation of millions of jobs for vidarbha youths .
VJAS has brought the attention of Maharashtra Govt. over the media reports of diversion huge fund to Maytas Infra Pvt.Ltd in the mega projects of Hyderabad metro rail and others projects in pipeline .VJAS has urged administration that MADC managing director R C Sinha is making the statements like he is man beyond the law of land and he has obliged Maharashtra Govt. to bring his own companies in MIHAN and now the whole matter needs scanner and clarification, Tiwari added.
Amendments in DTC likely to hit investment in state SEZs: MADC
| Printed from | |
20 Jul 2010, 1618 hrs IST, | |
MUMBAI: The Maharashtra Airport Development Company Ltd (MADC), promoter of the ambitious MIHAN-SEZ project in Nagpur, feels that the proposed amendments in the Direct Tax Code (DTC) which deny tax sops to special economic zones, would have an adverse impact on investments in the state. The Maharashtra Government has approved 146 SEZ proposals out of which 54 have been notified till now. Of these, 24 projects, primarily IT-based, are already operational. The Multi-Modal International Hub Airport at Nagpur (MIHAN) project is spread over 4,354-hectares (approx 10,000-acres) of land. Out of this, around 2,086-hectares (approx 5,000-acres), has been earmarked for the SEZ project. The project estimates it would generate nearly Rs 40,000-crore in annual revenue and provide employment to some 1,20,000 people directly and another 2,30,000 people indirectly. "Maharashtra is being looked at as an investment destination. If the revised DTC draft is approved, it would have an adverse impact on investments in the state," MADC's Marketing Manager, S Sittarasu, told PTI here. He said that companies come to invest in SEZs as they get certain tax benefits, including income tax benefits. |
Remove condition of sale from First City agreement, BoA directs MADC
Staff Reporter
“The Developer shall not sell the land in a Special Economic Zone..” This is the mandatory provision of Special Economic Zone (SEZ) Act and rules framed thereunder which also stipulate that residential units should be primarily sold to persons connected with SEZ activities. Therefore, the Board of Approvals (BoA), the apex decision making body for SEZ has consistently maintained that no developer or co-developer can sell the land or residential dwelling to general public and extended this principle to ‘First City’ coming up at multi product MIHAN-SEZ promoted by Maharashtra Airports Development Company (MADC).
In fact keeping with statutory enactment, the Board of Approvals in its recent meeting held on July 13 has directed the MADC to remove the “condition of sale” from the agreement between developer and co-developer as well as from the Power of Attorney granted by MADC to the co-developer-M/s Reatox Builders which is coming up with ‘First City’ in MIHAN-SEZ.
Entire proceedings of BoA are available in the public domain and clearly mentions that Department of Revenue (DoR) pointed out “agreement of MADC with all its co-developers have been found to contain the condition that the flats built by such co-developers would be sold by them to public and MADC has issued Power of Attorney to such co-developers for such sale.”
The DoR representatives also pointed out, in the present case, the developer has come to transfer its authorised operations to co-developer without modification in the condition of sale of property. “The DoR does not agree to the proposal unless the condition of sale is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC,” the minutes mentioned.
The BoA after deliberations, decided to grant approval for transfer of the authorised operations, earlier granted to the developer, in favour of the co-developer, subject to the condition that the ‘Condition of Sale’ is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC. This leaves no scope of any ambiguity about fate of any residential project coming up within SEZ as the Department of Revenue had raised a similar objection about every housing project.
Interestingly, the First City project promoters are now claiming that the dispute is about word ‘sale’ and they will replace it with lease for 99 years which is as good as sale. However, instead of addressing the main issue about serious legal objection raised by the DoR representative, the MADC and M/s Reatox Builders have tried to claim that their project has valid approval from BoA- a fact nobody has disputed. In their effort to skip the main contentious issue of bar on selling the residential units to general public, they have tried to side-track the debate to confuse the gullible purchasers who are apparently not aware about this vital aspect.
Notably in case of another housing scheme of M/s Mahindra Bebanco Developers Limited coming up in MIHAN-SEZ, the BoA in its meeting held on August 11, 2009 refused to accord co-developer status. The minutes read as follows: “The Representative of the Department of Revenue pointed out that the residential building units proposed are for open sale which is against the letter and spirit of the SEZ Act and Rules. After deliberations, the Board directed the Development Commissioner, SEEPZ, to go into the issue and submit a report based on which BoA can take a decision. Accordingly, the Board decided to defer the proposal.”
In subsequent meeting of BoA held on December 15, 2009 the minutes stated “ DC, SEEPZ indicated that after perusing the agreement, it was noted that there are clauses in the agreement which denote sale envisaging transfer of ownership and not lease. Accordingly, BoA decided to defer the proposal with the direction that the developer must redraw the co-developer agreement in line with the SEZ Act/Rules.”
Interestingly, the SEZ Act/Rules clearly stipulates that the Developer or Co-Developer shall strive to provide adequate housing facilities not only for the management and office staff but also for the workers of the Special Economic Zones Units. This has put a big question-mark over open invitation to general public to purchase residential units within SEZ as the Act or rules clearly mention that in the non-processing area, the residential facility will be created for persons directly connected with SEZ activities.
Editor’s Note
Dear Readers,
It is painful to realise how vested commercial interests mislead the public. We found this out when a quarter-page advertisement on the front page of The Hitavada CityLine on July 27, 2010, in the name of Maharashtra Airport Development Company Ltd. called The Hitavada reporting on July 23, 2010, on a builder’s improper activities “malicious and false”. Though we were shocked to read the contents of the advertisement, we chose to publish it because that offered us an opportunity to bring before our esteemed readers more painful facts about what kind of wrongdoings are going on in the MIHAN Special Economic Zone in the name of development. We are releasing those details, available on the official website of the Board of Approvals of Union Ministry of Commerce, for the benefit of the public, as part of our bounden duty to do so in larger public interest. These details will bring to people’s notice how rules are ignored or manipulated or twisted or interpreted maliciously by vested interests to mislead the uninformed public.
MADC’s denial
We must add value to public information by stating here that local officials of the MADC have denied flatly that they have issued the said advertisement.
Following our report on July 23, the MADC issued its clarification as regards some details. We published this clarification, after suitable alterations by MADC itself, in our issue of July 25, 2010. The MADC officials informed their head office about our cooperation and closed the issue.
Factually, the said advertisement was issued to us by an agency for its client ‘Disha Direct’ for ‘Product - First City’. Disha Direct is the marketing company for ‘First City’. We insist that our July 23 report was based entirely on the proceedings of the BoA meetings, available on its official website www.sezindia.nic.in.
The accompanying report, too, derives the details from the same source.
“First City for SEZ employees/staffers” -not for outside purchasers
MADC’s affidavit before HC confirms that residential project is meant for people working in SEZ and not for outside purchasers
Staff Reporter
“Out of the area that is being utilised for establishing Special Economic Zone, an area admeasuring 31 acres of land is being developed by M/s Reatox Builder and Developers, under power of attorney executed by the respondent no 1 (MADC) for construction of residential complex to accommodate employees/officers working in Special Economic Zone.”
This is what the Maharashtra Airport Development Company (MADC) had told Nagpur bench of Bombay High Court on an affidavit, duly sworn by a senior officer of MADC in 2008. This candid statement has once again raised a big question-mark over legality of offer extended to general public to purchase these residential dwellings.
The affidavit was filed by MADC in response to a petition filed by M/s Suretech Hospital questioning the motive of MADC to acquire its land at Mouza Chinchbhuvan for rehabilitation of project-affected persons of MIHAN. Incidentally, the rehabilitation work over 58 hectare land, too, has been entrusted to M/s Reatox Builders- the firm which is coming up with ‘First City’ project in MIHAN-SEZ area.
In the instant case, M/s Suretech had claimed that its land was required for constructing a hospital and research centre and that MADC had ample land already acquired and same could be used for rehabilitation of MIHAN PAPs. It was suggested that land allotted to M/s Reatox Builders within MIHAN-SEZ can be utilised to construct houses for villagers displaced by MIHAN-SEZ.
However, the MADC opposed the prayer stating that “a policy decision has been taken to rehabilitate project affected persons from the area falling in NMC limits in Chinchbhuvan village which is situated within NMC limit. Regarding the project-affected persons falling outside NMC limits, the respondent no 1 (MADC) has decided to resettle them in village Khapri Rly which is situated beyond the NMC limits.” Against this backdrop, the MADC had informed the High Court that land developed by M/s Reatox Builders inside SEZ area (First City Project) is essentially to create residential complex to accommodate employees/officers working in the Special Economic Zone.
The ‘First City’ project was launched on November 4, 2007 and was expected to be completed within 27 months as per the term of lease. Initially, ‘First City’ was to have 12 building of 18 floors each. However, the Airports Authority of India raised objection to such a height stating that project was situated in funnel area of airport and would pose danger to aircraft’s landing at Nagpur airport. This forced M/s Reatox to lower the height by five floors and redesign the project.
Apart from objections raised by Airports Authority of India (AAI), the First City Project is also facing another hurdle, since the Board of Approvals (BoA) has directed the MADC which is developer of SEZ and M/s Reatox Builders which has received approval as co-developer to remove condition of sale from its agreement and power of attorney granted by MADC in favour of M/s Reatox Builders.
Ironically, the BoA stand which is based on provisions of SEZ Act and Rules was also adopted by MADC before the High Court in which it categorically stated that First City Project was meant to house people directly connected with SEZ. The SEZ Act clearly states, “The Developer shall not sell the land in a Special Economic Zone..” and rules also stipulate that residential units should be primarily sold to persons connected with SEZ activities. Therefore, the Board of Approvals (BoA), the apex decision making body for SEZ has consistently maintained that no developer or co-developer can sell the land or residential dwelling to general public and extended this principle to ‘First City’ coming up at multi product MIHAN-SEZ promoted by MADC, during its recent meeting held on July 13.
The minutes of the meeting clearly mentioned that BoA raised objection over “agreement of MADC with all its co-developers which contained the condition that the flats built by such co-developers would be sold by them to public and MADC has issued Power of Attorney to such co-developers for such sale.” The BoA has directed the MADC remove condition of sale from its agreement with co-developers (in the instant case M/s Reatox Builders).
DoR missive puts MIHAN residential project- First City, in deep trouble
DoR missive puts MIHAN residential project- First City, in deep trouble
THE first project in the first multi modal SEZ in the city - First City - has landed in deep trouble with the Board of Approval (BoA), Ministry of Commerce, refusing to grant permission for ‘transfer of approval in respect of authorised operations in favour of M/s Reatox Builders and Developers Private Limited, a co-developer in the SEZ’.
The DoR wants MADC to remove the ‘condition of sale’ from the agreement between developer and co-developer as well as from the Power of Attorney granted by MADC to the co-developer Reatox Builders.
Representatives of the DoR pointed out that agreement of MADC with all its co-developers have been found to contain the condition that the flats built by such co-developers would be sold by them to public and MADC has issued Power of Attorney to such co-developers for such sale.
The DoR representatives also pointed out, in the present case, the developer has come to transfer its authorised operations to co-developer without modification in the condition of sale of property.
‘The DoR does not agree to the proposal unless the condition of sale is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC’ states the missive.
The Maharashtra Airport Development Company Limited (MADC), Developer of the MIHAN SEZ in Nagpur, had requested for transfer of approval in respect of authorised operations in favour of M/s Reatox Builders and Developers Private Limited.
The matter came up before Board of Approval (BoA) during its meeting held on July 13. The BoA after deliberations, decided to grant approval for transfer of the authorised operations, earlier granted to the developer, in favour of the co-developer, subject to the condition that the ‘Condition of Sale’ is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.
The authorised operations include housing phase-I as per the plan provided by the Developer with total number of 2082 flats with a built up area of 2,75,000 square metres, low income houses, convenient shopping units, 180 houses with a total area of 11,312 square metres, and Club House in the housing phase-I with an area of 2,035 square metres.
The above mentioned SEZ was notified on May 29, 2007, on an area of 1511.51 hectares. Subsequently an additional area of 66.90 hectares was notified, thereby making the total area of the SEZ as 1578.41 hectares. M/s Reatox Builders and Developers Private Limited was approved as a co-developer vide LoA dated January 5, 2009.
The developer was granted approval for carrying out certain authorised operations in the non-processing area by the BoA in its various meetings. The developer has, now, requested for grant of approval for transfer of these authorised operations in favour of the co-developer Reatox Builders which the DoR has tersely refused.
First City, the ambitious residential project by MADC in MIHAN SEZ, had earlier also faced flak from the Airports Authority of India (AAI) for the proposed height of the buildings after which about 5 floors had to be reduced from the original plan of 18 floors.
When contacted, Project Manager of Reatox Builders Bhaduri feigned ignorance about the devilment and said that only head office people can comment on it. Despite repeated efforts, Atul Shirodkar, MD of Reatox Builders could not be contacted, as he is reportedly out of country.
THE first project in the first multi modal SEZ in the city - First City - has landed in deep trouble with the Board of Approval (BoA), Ministry of Commerce, refusing to grant permission for ‘transfer of approval in respect of authorised operations in favour of M/s Reatox Builders and Developers Private Limited, a co-developer in the SEZ’.
The DoR wants MADC to remove the ‘condition of sale’ from the agreement between developer and co-developer as well as from the Power of Attorney granted by MADC to the co-developer Reatox Builders.
Representatives of the DoR pointed out that agreement of MADC with all its co-developers have been found to contain the condition that the flats built by such co-developers would be sold by them to public and MADC has issued Power of Attorney to such co-developers for such sale.
The DoR representatives also pointed out, in the present case, the developer has come to transfer its authorised operations to co-developer without modification in the condition of sale of property.
‘The DoR does not agree to the proposal unless the condition of sale is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC’ states the missive.
The Maharashtra Airport Development Company Limited (MADC), Developer of the MIHAN SEZ in Nagpur, had requested for transfer of approval in respect of authorised operations in favour of M/s Reatox Builders and Developers Private Limited.
The matter came up before Board of Approval (BoA) during its meeting held on July 13. The BoA after deliberations, decided to grant approval for transfer of the authorised operations, earlier granted to the developer, in favour of the co-developer, subject to the condition that the ‘Condition of Sale’ is removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.
The authorised operations include housing phase-I as per the plan provided by the Developer with total number of 2082 flats with a built up area of 2,75,000 square metres, low income houses, convenient shopping units, 180 houses with a total area of 11,312 square metres, and Club House in the housing phase-I with an area of 2,035 square metres.
The above mentioned SEZ was notified on May 29, 2007, on an area of 1511.51 hectares. Subsequently an additional area of 66.90 hectares was notified, thereby making the total area of the SEZ as 1578.41 hectares. M/s Reatox Builders and Developers Private Limited was approved as a co-developer vide LoA dated January 5, 2009.
The developer was granted approval for carrying out certain authorised operations in the non-processing area by the BoA in its various meetings. The developer has, now, requested for grant of approval for transfer of these authorised operations in favour of the co-developer Reatox Builders which the DoR has tersely refused.
First City, the ambitious residential project by MADC in MIHAN SEZ, had earlier also faced flak from the Airports Authority of India (AAI) for the proposed height of the buildings after which about 5 floors had to be reduced from the original plan of 18 floors.
When contacted, Project Manager of Reatox Builders Bhaduri feigned ignorance about the devilment and said that only head office people can comment on it. Despite repeated efforts, Atul Shirodkar, MD of Reatox Builders could not be contacted, as he is reportedly out of country.
Civil Aviation Ministry unhappy over private company status of MIPL
Ministry has asked MADC to rectify the mistake at the earliest
Staff Reporter
Airports Authority of India (AAI) has raised strong objections over move by Maharashtra Airport Development Company (MADC) for registering its Joint Venture Company-Mihan India Private Limited (MIPL) as a private limited company.
According to Ministry of Civil Aviation sources it as “a very serious matter”. How can a joint venture of two government companies be registered a private company? they wonder. They claimed that MADC has accepted that it was an inadvertent mistake and rectification process is on, but this has raised doubt about legal sanctity of MIPL that now runs the Nagpur international airport.
The JVC was formed after months of hectic negotiations and after nod from the Union Cabinet to hand-over Nagpur Airport to JVC between MADC and AAI with 51 and 49 equity stake respectively.
But when it was registered with the Registrar of Companies, the new JVC was christened Mihan India Private Limited (MIPL). The MADC now admits it was a plain mistake.
In a meeting held at Civil Ministry office in New Delhi on April 19, 2010, the officials strongly protested over this serious legal anomaly, and asked the MADC officials to rectify it at the earliest.
“It has been noticed that the JVC has been registered as a non-government company, whereas it should have been registered as a government company,” read the minutes of a meeting between the MADC and the Civil Aviation ministry officials in New Delhi on April 19, 2010.
The meeting was chaired by the Joint Secretary of Ministry of Civil Aviation, Alok Sinha and attended by the five MIPL board members, three of who represent the MADC. After the civil aviation officials pointed out what the MADC call “a mistake”, it was decided the error would be rectified and the JVC would be re-registered as a “government company”. According to MADC officials, the process to correct the inadvertent mistake is on.
But the AAI officials wonder if it could be just a matter of oversight, given that high profile IAS officials are involved in the project execution, and Maharashtra Chief Minister himself is Chairman of MADC. To be fair to MADC, it had to fight very hard to get control of Airport amidst stiff resistance from AAI and Ministry of Civil Aviation. The
The MADC was constituted by Maharashtra Government in 2003 as the special purpose vehicle and as the nodal agency to execute the ambitious Multi-Modal International Hub and Airport at Nagpur (MIHAN) project. The principal demand of transferring airport to MADC was resisted by Civil Aviation Ministry and following a PIL and massive public uproar, the Civil Aviation Ministry finally transferred the international airport in 2008 to JVC.
After many twists and turns in the bitterly fought PIL pending before Nagpur bench, an intervention application filed by well known lawyer Adv G C Singh has questioned the very formation of MADC. Since Civil Aviation is part of List I of seventh schedule of Indian Constitution and therefore only Union Government can exercise right over it, the application has pointed out while demanding that transfer of airport be quashed and AAI be permitted to run airport.
Even the AAI employees at Nagpur are reluctant to join MIPL and have approached the High Court. Even the issue of MADC or MIPL not having valid licence to run the airport has created another sensation and DGCA has been asked to clarify stand before the High Court.
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