My father who owned land in what is now called Verna Industrial Estate, died believing he owed money to the STATE. The land was acquired at 14/sq mt under urgency clause, subsequently on appeal it was valued at Rs 2/-, so he had to technically return the money. Belonging to a generation that neither borrowed or lent, it was too much, he had a stroke with the tension. Just before he died a court ruled that the land was to be valued at 48/- after 20 odd years, unfortunately GIDC appealed and since he could not ask GOD for another 20 years, he still does not know what his land was really worth.
However some GIDC officials knew the value of the land and despite being poor men have now become crorepatis. Ever since the SEZ land was allotted there has been total anarchy as far as allotments of plots especially in Verna. Being the former President I had a ring side view ofcourse without the details. On the face, there were no plots, yet one heard horror stories of how much an allottee had to pay to get a plot, if there were no plots how did they get it?
This question made me decide to use the RTI Act of 2005 to ferret out information. However the case which according to me represents all what is wrong in GIDC was unearthed more due to over zealousness of the GIDC field manager at Verna than RTI.
In Nov 09, the Government paying heed to the various complaints formed a TASK FORCE under the Industries Secretary to track and decide how to put unutilized lands to use among other things. I was named as a member along with P Joshi, and representatives of GSIA, CII & GCCI. In one of the meetings it was decided to have a joint inspection of so called unutilized lands since my RTI data from GIDC, DITC data and data submitted by GIDC did not tally. The members of the joint team were GIDC Field Manager, DITC manager and representative of GSIA.
After the team finished the inspection of Verna and were signing the report, my attention was drawn to a change made in the status of one allottee, MEHUL DEVELOPERS PVT LTD. The Field Manager had changed the status from “VACCANT” to “UNDER CONSTRUCTION”. A foolish move, as the google images would have shown the correct picture. I put a remark and decided to dig deeper.
The Plot first allotted to Santosh Kust Desai as per 289th board resolution no 2 dated 3rd Aug 2006. He was given 35000 sq mts for setting up a warehouse. The resolution is subject to him satisfying two conditions viz. Submit financial sanction for plant and machinery, submit project report and 2) submit PAN card. Like many allotments that day, no mention is made of the PLOT No.
It is not clear if he submitted the papers before getting the allotment. This can be checked, but if he had not yet submitted his project report how did GIDC put the following figures in the agenda papers Project cost Rs 350 lacs and machinery cost Rs 20 lacs. GIDC’s basic requirement as per citizen’s charter of SSI registration was waived.
Another feature of this meeting was the fact that after this the GIDC resolved to change the premium rate from 600/- to 750/-. Many allotments were made in this meeting and one that needs to be studied further is “Costal logistics Infrastructure Pvt ltd”, they were allotted 50000 sq mts of non existant land, the directors/promoters appear to be benami relations of some GIDC officials. One senior GIDC official looked at the agenda and named the relatives, hence it is being singled out despite the fact that there were others issued land with no plot nos.
Again in BOD meeting no 294 held on 15 Feb 2007, under additional items agenda no 14 states “Allotment of Utility plot no U03 ad measuring 35000 sq mts in Verna Industrial Estate Phase IV to Santosh Kust Desai” . The resolution no 38/2007 passed by the board reads” Resolved unanimously that the proposal to approve the allotment of utility plot U03 admeasuring 35000 sq mts in VIE, Phase IV to Ms/ Mehul Developers Pvt. Ltd ( company under formation) for their IT/ITES project subject to compliance of our usual terms and conditions be and is hereby approved”
Nowhere in the agenda note does Mehul Developers name appear, not even in the proposed resolution. The agenda note mentions change of project from warehousing to IT/ITES. The rate of land stays at 600/- sqm. Despite the project changing the cost of project stays at Rs 350 lacs and Machinery Rs 20 lacs. Meaning no one applied their mind. The remark at the bottom states clearly that the party has submitted Project Report and manpower requirements. Based on above sounds difficult to believe because you cannot do a warehousing project in 35000 sq mts with 15000 built up in Rs 3.5 crores. Even at a modest 5000/sq mt yu would need 9.6 crorse for land and building. If you were putting up a IT/ITES project you would need much more. Who ever studied the project report and informed the BOD that it is ok, needs to be investigated for fraud.
Once Mehul was allotted the plot, the picture changes, was it treated as a transfer, were transfer charges paid. If it was a fresh allotment, the rate should be 750/sq mt. What did Mehul pay?The agenda note says Mehul is a Company under formation, according to the ROC it was formed 27 July 2006, much before this board meeting with a capital of One Lac rupees. The cost of the land even at 750/sq mt is Rs 2.63 crores. Who funded the acqusition, from where did the money come, did they pay GIDC the full value? etc these question need to be asked.
The GIDC board decided to ban transfers of plots, 30 Sept 2008 was set as the cutoff date. In an unsigned statement to the BOD, a list of 13 pending applications are shown as on the cutoff date. 12 of these are applications dated either 29 sept 2008 and 30 Sept 2008, talk of insider trading. Mehul Developers Pvt Ltd is also listed here. The Transferee company mentioned is BOSCH. So while a multinational like BOSCH is looking for a plot we have a Rs 1 lac capital company sitting on the plot. Had GIDC studied the case it is possible that this plot would have been available for BOSCH when they applied. After all to set up a project on 35000 sq mts of land you would need some credentials.
The reply under RTI to a query on transfers pending lists a pending transfer between Mehul Developers Pvt Ltd and M/s BOSCH Ltd, no date is given as to when defiency note was issued, but the reason transfer is pending is strange. “PARTY HAS NOT SUBMITTED THE DOCUMENTS AND IS IRREGULAR IN PAYMENTS”, this means that GIDC has not received it payments as per schedule form MEHUL and yet not revocation letter was issued. Also the fact that the IDC Field Manager tried to mention “Under Construction” implies that construction license was issued. This again has to be investigated as to why construction license was issued if party had defaulted.?
This case itself is good enough for the Government to order a full scale investigation as it shows that the rot is deep and goes to the top. There is a major racket and it needs serious looking into. The other areas that need further investigation for which I have preliminary data under RTI, but will take too long to get more. The rush now is because the culprits are trying to cover their tracks.
Mentioned above is the case of Costal Logistics, with its benami holding on behalf of the GIDC officials it needs more investigations. Transfers of land are another area, RTI data suggests the fastest transfer within a day and the longest more than 1 year. Some case are still pending for paperwork. If GIDC make some study and asks questions how can the process be completed in less than a month given how GIDC works.? Obviously other factors are involved. What queries are generally required to be answered, were those with quick transfers asked the same or were these questions overlooked.?
Out of turn allotments. According to GIDC Citizens Charter, plot allotments are based on First Come First served policy. Assuming that applicant has met all the requirements. However perusal of allotments made and list of wait listed applicants given by GIDC shows that the policy is followed more in breach than policy. This clearly points to the fact that the only reason to allot a plot to someone lower down in the list ahead of the others is pecuniary gain. A vigilance inquiry into the financial dealings of the officers authorized to allot the plots will give more light on the issue.
Sudin Naik, former President of GSIA and Prashant Shinde, President of Verna Industries Association have complained about these out of turn allotments despite being in the waiting list. Sudin and Shinde mention that since the exact size of plot applied for was not available, they were not offered a larger or smaller plot as first preference. Yet in case of Santosh Kust Desai, who applied for 30000 sq mts, based on security deposit paid but was automatically offered 35000 sq mts. Arbitrary to say the least.
Related to this is the fact that plots under 10000 sq mts are directly allotted by the MD without BOD consent. Infact the minutes of the 288th BOD held on 6th July 2006, Agenda Item 14, the BOD has asked for a list unitwise of such plots and hence the item was deferred.
My RTI query on how many plots were revoked by GIDC and subsequently broken up into small plots and allotted directly is pending. In Pilerne a 30000 sq mt plot was revoked, and then broken up into smaller plots and allotted to marble sellers while manufacturing waits for plots. Breaking up a plot is a loss to the exchequer as GIDC would lose land to provide access to plots. No permissions appear to be taken either from the board or TCP.
GIDC follows the TCP rules in reply to an RTI query. Yet there have no record of permissions taken when the plots are subdivided or relocated or status changed from open to industrial . When queried on open spaces GIDC says that no opens spaces were allotted, opens space have been repositioned. The Leader of the Opposition and Mr. Datta Naik have been allotted plots where once opens spaces were marked, for no fault of theirs. How can simple reallocation lead to creation of plots? Therefore this needs to be investigated. Reallocation or shifing open spaces is contrary to the circular issued by Chief Secretary No 32/1UDD/MUN/2002 on 10th Jun 2002 based on a HC Order dated 8/1/2002. The circular is categorical that open spaces marked by development authorities cannot be utilized or interfered with without the consent of the stake holder, in this case GIDC BOD would have been the minimum. According to sources in GIDC, the open spaces allocated was 15%, someone decided that the max required is 10% and thus the open spaces were allotted. This went against the HC ruling.
In Verna, between Cyratron and Navhind Times is an open space above which a HT line passes. This open space in contravention of the above circular and Electricity department rules has a few structures on the same below the power line. It is there for all to see that there is power to flout the law.
In short GIDC is a can of worms that needs to be sorted out if Goa has to develop industrially and if the sacrifices of the original land owners has to be of use to the State. Currently there is no heed paid to industrial projects, it is a simple case, if you can pay the premium take the plot irrespective of the fact that there is a viable project or not.
The Government must act quickly, remove those involved in plot allotments and simultaneously begin an enquiry using those agencies that can search and investigate without waiting for RTI information. The income tax department would be useful in unearthing the illegal payments that would have accompanied the tradeoffs made for allotment.
The Congress President hit the nail on the head when she said corruption stems from land allotments. She has asked her governments to be vigilant and stop the corrupt practices. Will the government in Goa act and give relief to those who sacrificed their lands for Goa’s development?
Only time will tell.
Blaise Costabir
