Author: M.G. Radhakrishnan
Publication: India Today
Date: February 18, 2008
URL: http://indiatoday.digitaltoday.in/index.php?option=com_content&task=view&&issueid=39&id=4322&Itemid=1&page=in&latn=2
Introduction: The year-old sale of PSU land
in Kochi in violation of laws to a private developer has put the LDF Government
in the dock
The Left, that squirms every time its opponents
mention the public sector, finds itself in an unenviable situation over the
sale of PSU land to Mumbai-based Blue Star Realtors, promoted by Housing Development
and Infrastructure Ltd, for building a Rs 4,000 crore Cyber City in Kochi.
The Left Democratic Front (LDF) Government
allegedly facilitated the deal in 2007 in which 70 acres of Hindustan Machine
Tools' (HMT) land was auctioned for a paltry Rs 91 crore- less than one-third
of its market value.
Moreover, the sold land was part of the 782
acres that the state had transferred free of cost to HMT in 1962 for future
expansion. In 1978 the government took back 400 acres but returned 100 acres
after the company moved court.
It is a portion of this land that HMT has
sold now. As the project snowballed into a scandal, Chief Minister V.S. Achuthanandan
who was to lay the foundation stone for the Cyber City project on January
19, kept away from the function.
"There are serious allegations against
the project. The IT department under me has not received the required documents
for the project and hence I kept away," says Achuthanandan, who has now
ordered an inquiry by the chief secretary.
However, the function was graced by three
ministers and leaders of various trade unions.
Documents show that barely two days after
the land was sold and registered in the name of Blue Star Realtors in November
2006, Ernakulam District Collector Muhammed Hanish had written to the revenue
authorities calling the deal unauthorised.
According to the collector, HMT had violated
the Land Utilisation Act as it had no right to sell the land. Later, in December
2006 principal secretary, revenue, wrote to the collector saying the land
could be confiscated from HMT if it was used for non-industrial purposes.
In January 2007 the law secretary wrote that
HMT had no right to sell the land. It has now surfaced that the management
had placed advertisements for a bid in only two newspapers in Mumbai.
Ministers under the cloud are Industries Minister
Elamaram Kareem of CPI(M), and Revenue Minister K.P. Rajendran of CPI. At
a meeting in Kareem's chamber in June 2007, which was also attended by HMT
trade union representatives, these two had overruled objections and issued
orders to expedite the deal and register the land in the name of the realtor.
Union leaders who had earlier objected to
the sale agreed to the sell off after the company agreed to gift 30 acres
to a workers' housing co-operative. Principal secretary, industries, who too
attended the meeting wrote to the collector to withdraw his objections and
accord sanction for its registration.
With the issue kicking off a factional feud
in the CPI(M), everyone is washing his hands off it. "I don't know if
there was anything foul in the deal which was endorsed by the management and
all the trade unions. Now that we have received complaints we have written
to Santosh Mohan Deb, Union minister in charge of Central PSUs to inquire
if HMT has done anything wrong," says Kareem.
On the other hand, Achuthanandan says: "How
can I know about the hundreds of papers and files which come to my office?"
The CPI(M) is now investigating the issue. With the power struggle in the
party racing to a climax just before the state meet on February 11-14, the
deal is providing loads of ammunition to both camps.