MADC will not acquire land without logic

Printed from

MADC will not acquire land without logic: Madan

TNN | Jun 19, 2011, 09.37pm IST

NAGPUR: Ever since its launch, the ambitious Mihan project has been marred by various controversies and a slow pace of developments. However, on Saturday, UPS Mihan, the newly elected vice chairman of the Maharashtra Airport Development Corporation, which is the father of Mihan, said the project will get its due attention.

Speaking after taking charge, Madan admitted that the project had failed to gather pace which it deserved. He, however, said that now it won't happen. "If on our own we fail to attract industries in Mihan, we would not hesitate to appoint a private consultant for marketing the project," he said.

Refuting the charge that Mihan was politically hyped, Madan said if completed, the project will not only provide job opportunities in Vidarbha but also remove the region's backlog.

Since the government had announced his name, Madan had already started doing work. "I had already spoken to officials from TCS and Satyam. TCS has promised to start their project in the next three to four months," Madan claimed. "Once we are able to convince the existing companies to come, others will start follow."

Till date, Mihan has acquired around 2086 hectare of which 800 hectare has been allotted while 1200 hectare is lying unused.

On MADC's plan to acquire additional land in Jaitala and Bhamti villages to construct the second runway, Madan said that the MADC will not acquire land without any logic. He also clarified that if required land which was acquired earlier will be de-notified.

He also blamed the recession for the slowdown in Mihan. "But now the economy has improved a lot and we can hope for the best," he said. Madan, however, expressed concern over current policy for setting up of industries in SEZ projects. It hardly gives any incentives, so new units are reluctant to come in SEZs.

To expedite the project, the new MADC vice-chairman is also planning to approach the state government for financial assistance to complete the infrastructural developments in Mihan.

Replying to a query, Madan assured that action will be initiated if any realtors had committed any violation.

Earlier, a committee of Mihan was convened at the divisional commissioner's office. It was attended by Madan, divisional commissioner BV Gopala Reddy and district collector Saurabh Rao. Later, a meeting with local MLAs Chandrashekhar Banwankule, Devendra Fadnavis and project affected persons (PAP) was held.

On the basis of PAPs' demand, the committee will prepare a report demanding 12.5% developed land for them. "Besides, compensation issue will also be sorted out," said Madan.

MIHAN Land Scam-Massive land-loot on the sly by MADC-Hitavada

MIHAN Land Scam-Massive land-loot on the sly by MADC-Hitavada


Move to give denotified land acquired from farmers for SEZ to builders at dirt cheap rate

Staff Reporter
NAGPUR, June 16
THERE is a massive land grab going on slyly and shamelessly in Vidarbha -- by none other than Maharashtra Airport Development Company (MADC). And again, the beneficiaries are going to be select builders and developers while original land-owners -- the farmers on the outskirts of Nagpur -- will be the losers as usual. They are going to be hapless watchers of the land-loot first in the name of development of Special Economic Zone (SEZ), and then by declaring that the developmental project is a part non-starter.
Making utmost efforts to do things on the sly, the MADC has succeeded in denotifying as many as 338 hectares of precious land within SEZ and has planned to give it to developers who would make massive profits by buying the land at dirt cheap rates. This act is in total and brazen violation of the law and fundamental principle of natural justice that the denotified land must pass back to original owners -- farmers in this case.
This disturbing episode denotes an ugly conspiracy of silence. For, all those involved in the project in various capacities and at various stages -- from top-ranking political leaders to top bureaucrats who acted as their cronies -- knew about this sly and manipulative denotification. They were the people who canvassed for the project, made false promises of heaven-like development, looted farmers’ land for peanuts, and then sought to hand over the land to private parties for crass commercial utilisation whose worth would be several thousand times higher than the price paid originally to farmers -- all in the name of development.
And the dirty nexus promises to continue. For, one builder, already notorious for illegal practices, M/S Reatox Builders and Developers, also has applied for denotification of the land upon which it is constructing the ‘First City’ housing project, officially meant for the employees of units operating in the SEZ, all against law and also against the official position of the Board of Approvals (BoA) of the Union Ministry of Commerce. Since as far back as August 2008, the BoA has maintained that it would never allow any speculative real estate activity in SEZ. In meeting after meeting, the BoA has also stressed that ‘First City’ flats cannot be sold to non-SEZ users. Yet, seeking extra-constitutional support of people like the then MADC supremo R.C. Sinha, Reatox has violated rules, regulations, and law brazenly.
Thanks to the alertness of the BoA, the dirty Reatox-Sinha plan did not work. Right in 2008, Reatox applied for denotification of the ‘First City’ land admeasuring 12 hectares, as part of the 360 hectares of land whose denotification the MADC had sought. The BoA took a strong view of this report and G K Pillai, then Chairman of the Board of Approval and Secretary of Union Ministry of Commerce (now, Union Home Secretary), “expressed his displeasure and opined that in no circumstances the SEZs should be allowed to be used as a real estate speculation activity.”
Not willing to respect this direct refusal, R C Sinha allowed Reatox to start advertising for the ‘First City’ flats to be sold to non-SEZ users. Exposes by ‘The Hitavada’ subsequently led to ouster of Sinha from his coveted position he often abused to benefit his friends and blocked Reatox’s way to have a field day in total violation of the law. Quick to take notice of the exposes, Prithviraj Chavan (who had succeeded Chief Minister Ashok Chavan in the wake of Adarsh scandal) acted fast and packed Sinha off into oblivion.
For record’s sake, MADC officials claimed that non-processing zone land of roughly 700 acres would be utilised for residential, commercial use, creation of bus and rail terminals. But the million dollar question is: Why was private land acquired for residential purpose in the first place and why did the MADC maintain a stealthy silence for 30 months?
Though the denotified area will not get SEZ benefits, it is quite clear that residential activity and commercial use will result in massive profit by builders on the land which farmers sacrificed for an ambitious developmental project.


Curious case of loot by M/s Reatox Developers
DESPITE rejection by BoA to denotify 12 hectare land allotted to M/s Reatox Builders and Developers within SEZ, the builder has once again applied for denotification of the same. The BoA in its meeting held on March 25, 2011 had once again reiterated that residential units within SEZ can be leased to only employees directly connected with SEZ activity and had directed Development Commissioner to take stern action against First City project developer for selling flats to general public.
The BoA in its decision pertaining to MIHAN-SEZ had time and again made it clear that health city, club house, residential units coming up within notified area are meant for persons directly connected with SEZ activity. Therefore, to escape from the clutches of law, Reatox Developers had once again applied for denotification, but same was rejected by Development Commissioner, since it was not endorsed by MADC, which is developer of SEZ. Now, the denotification proposal will be placed before MADC Board for its consideration. Chief Minister of Maharashtra is ex-officio chairman of MADC. Prithviraj Chavan, known for his clean image, has already shown doors to R C Sinha for favouring Reatox and now the MADC Board headed by him will have to take a final call about this highly controversial proposal aimed at rescuing Reatox and First City project from deep trouble and to condone their past misdeeds and brazen violation of SEZ law.



BoA raps MADC for real estate speculation activity
IN what could be described as a tight slap on the face of MADC, the Board of Approval had rapped the MADC bosses for encouraging real estate speculation activity by promoting sale of land within multi-product SEZ.
In the meeting held on August 1, 2008 chaired by then BoA head G K Pillai (presently Union Home Secretary) the BoA minutes noted, “the Department of Revenue drew attention to a news report about alleged sale of land in the multi-product SEZ in Nagpur, being developed by Maharashtra Airport Development Company. The BoA took a strong view of this report and Chairman of the Board of Approval “expressed his displeasure and opined that in no circumstances the SEZs should be allowed to be used as a real estate speculation activity.” He stressed that any violation of SEZ Act and Rules would invite penal action as per SEZ Act. This was the time when MADC and its bosses were boasting about entry of large number of high profile real estate players but apparently they never sought permission of BoA on this issue.
Even on June 2, 2009 the BoA had criticised MADC for constantly changing notified area. “The Representative of Department of Revenue pointed out that the developer has been seeking change in the area of the notified SEZ quite frequently. After deliberations, the Board decided to defer the proposal with the directions to the developer that he should come back with a firm proposal.” This makes it clear that MADC had tried to change the notified area as per its convenience. Two years down the line, the MADC finds itself in a tight spot and has faced BoA strictures on several occasions for violation of SEZ Act. (BoA proceedings are available in public domain and can be accessed at www.sezindia.nic.in)



Modus operandi of loot
WITHOUT making any noise, the MADC had moved a controversial proposal to denotify 360 hectare SEZ land earmarked for non-processing activity two and half years ago. Such a proposal was actually approved by Board of Approvals (BoA) way back on December 8, 2008. MADC had sought permission to denotify 360 hectare land. But BoA excluded 22 hectare land already allotted to M/s Reatox Developers (12.55 hectare) and D Y Patil International School (10.12 hectare) from the area sought to be denotified.
Interestingly, the final notification indicating 338 hectare area excluded from notified SEZ area is yet to be published in the gazette. Once such a notification is issued, the MADC is free to allot denotified land to builders and realty players- defeating the very purpose of creating SEZ.
MADC headed by controversial bureaucrat R C Sinha had initially mooted multi-product SEZ spread over 2086 hectares, out of which 1472 hectares were to be used by various processing units to be set up and remaining 614 hectares was earmarked for service sector units. However, the area was reduced to 1597 hectares including non-processing zone of 360.95 hectares.
The conduct of MADC and its previous boss R C Sinha in clandestinely working to denotify 700 acre prime land situated within SEZ area and maintaining utmost secrecy about it has already raised eyebrows. This reveals their eagerness to champion the cause of select builders and realty giants, who will be real beneficiaries of this land, while relegating development of MIHAN and processing units within SEZ to backburner.


Doubts raised about demand for additional land
MADC’s demand for more land needs to be looked with utmost suspicion looking at its shady past and conduct in moving denotification proposal for 338 hectare (approx 700 hectare) land.
This has also raised some disturbing questions about efforts of the MADC to get additional land for proposed parallel runway and even some land in Khapri area.
Now, nobody is sure whether the land so acquired will be utilised for the very purpose for which it is being acquired. Tomorrow they will denotify this prime land at Jaitala and Bhamti and offer them to builder of their choice, stated angry farmers who are fighting against forcible acquisition of their land for MIHAN and SEZ area. The MADC made constant changes in area required for its project and was rapped by Board of Approval for this fickle minded approach as well, he pointed out.
According to latest judgement delivered by Haryana High Court and Allahabad High Court, the land acquired for public purpose, has to revert back to original land owner, if it is not used for the purpose for which it was acquired. Even UPA Chairperson Sonia Gandhi had backed a legislation favouring return of land to owners, if not used for public purpose.
Recently, West Bengal Chief Minister Mamata Banerjee has enacted law to return 400 acre land acquired at Singur (acquired for Tata Motors) to farmers. Even Uttar Pradesh Chief Minister Mayawati had followed suit and promised to return the land acquired for public purpose to original land owners instead of diverting it for some other purpose. Can progressive Maharashtra ruled by Democratic Front Government be an exception to this national trend and defy policy laid down by UPA Chairperson Sonia Gandhi ?
====================================================================