Gujarat: Land scam worth Rs.2 lakh crore exposed at Kandla Port For years, a scam has been going on in connivance with some local families and some senior Kandla Port Trust and Union Shipping Ministry officials. Headlines Today has exposed the mammoth land scam in which 16,000 acres of prime land were leased out for a mere pittance and the loss to the Indian exchequer has been evaluated at a whopping Rs.200,000 crore by the ports chief vigilance officer. The port of scam Kandla Port was built in the 1950s to counter the loss of Karachi to Pakistan following Partition. Today, it is one of the most important ports servicing western India. The Kandla Port Trust owns 2,44,000 acres of land - the biggest tract owned by any port trust authority anywhere in the world. The port limit extends to 849 sq km. So, who was going to miss the nearly 16000 acres of land that got leased out to salt manufacturing firms? Nearly 16000 acres of land belonging to Kandla Port Trust have been leased out to salt manufacturing firms for as low as Rs.144 per acre as rent as against the accepted norm of 6% of the market value, which runs into crores of rupees. It would have all stayed under raps if the then KPT Chief Vigilance Officer Manoranjan Kumar had not decided to blow the whistle in 2007. Kumar prepared a detailed report on the lease of land, which he submitted to the Shipping Ministry. The report points out how this land was allotted in a whimsical manner by various chairpersons of KPT. Kumars report stated that in 1960s and 70s, 16,000 acres were leased out arbitrarily to a few parties on nominal rates, without any valuation or auction. The leases were non-renewable and for a period of 30 years. About 9,000 acres of land were transferred into the possession of a select few families. Despite the fact that these leases were causing a huge loss to the exchequer while benefiting a few chosen families, the leases were twice renewed in 1996 and 2000 for a period of four years. In 2004, when 37 of the total 42 leases expired, the lessees conspired with certain KPT officials and senior officials in the Union Ministry of Shipping to get the land back by paying a paltry Rs.149 per acre. The land is now said to be worth Rs.two crore per acre. Kandla Port Trust authorities, however, feel they havent violated any rule. As far as the land policy is concerned, it provides renewal of leases. It has prescribed the norm for renewal and accordingly, Kandla Port has acted, says M.A. Bhaskarachar, Dy Chairman, Kandla Port Trust. For blowing the whistle, Manoranjan Kumar was transferred back to the Textiles Ministry. The case went to court and a PIL was also filed. In March 2011, the Delhi High Court ordered a CBI probe into the multi-crore land scam at Kandla Port and early in June this year, the CBI told the Delhi HC that it had written to the cabinet secretary, the senior-most bureaucrat, that Rakesh Srivastava, the joint secretary should be transferred from the Union ministry as he might hinder the probe. Blowing the whistle Chief Vigilance Officer, Kandla Port Trust, blew the whistle when he sent detailed reports first in August 2007 and then again in July 2008. In his reports, he detailed what was happening. How, beginning in the 1960s, government land, the port trust land, was being leased out in an arbitrary fashion and at great loss. For at least three years now, the Kandla Port Trust and the Shipping Ministry have been aware of the scam and have chosen to do nothing about it. What the report said Headlines Today is in possession of the reports that reveal the extent of the Kandla Port land scam. After the then Chief Vigilance officer of Kandla Port Manoranjan Kumar flagged the issue, the Centre for Public Interest Litigation petitioned the Delhi HC against this open loot of government resources. The leases of the land in question was not only renewed in violation of the law, but some of the ownership was also illegally transferred. The fact is that a few families have been reaping the benefit at the expense of the exchequer. Advocate Prashant Bhushan says the activity was not possible without the connivance of senior officials in the ministry. This land scam has been going on for years now despite adverse reports of the Chief Vigilance Officer. Both the government and the CVC are aware that the lease of most of the 16000 acres expired way back in March 2004, but neither have made any move to try and take the land back from the beneficiaries. While the government has consistently chosen to ignore the CBIs request, Headlines Today tried to get reactions from Rakesh Srivastava, to no vail. Not just the joint secretary, ports, but even former chairmen of the Kandla Port are suspected of being involved in the scam. Two former chairmen have been named and their roles are being looked into. This scam once again raises the crucial question: Why are the Shipping Ministry and the government not interested in reclaiming their own property? The facts have been established and the courts have taken cognizance, but no action is being taken. Unfazed masters Around five to six families are effectively in possession of 16,000 acres of land in question. However, far from ready to leave this land which has been leased to them for a paltry amount, the beneficiaries are gearing up for the battle that awaits them. Nearly 16,000 acres belonging to the Kandla Port Trust were leased out to salt manufacturing firms in 1974. Thirty years later, when the lease came up for renewal, the lease was renewed without any competitive bidding. Beneficiaries of this lease mainly include five to six big salt players in Kandla. This list includes Friends Salt Works, the Doongharshee Salt Works and a few others. However, these families refuse to accept any wrong doing. Hiralal Parekh, Director, Doongharshee Salt Works, says, There is no scandal here. There has been no violation. Kandla Port Trust has renewed this land according to its rules and norms. The board took this decision keeping their land renewal policy in mind. These groups of beneficiaries are unperturbed. Armed with legal documents, the owners of the Friends Salt Works have already faced a CBI inquiry once into their lease holdings. Harshendu Vaidya, Director, Friends Salt Works, says, Friends has already faced one CBI inquiry and they have given us the closure reports. If CBI comes second time, we will co-operate. The PIL filed in the Delhi HC clearly indicts them of having renewed their leases illegally. However having invested crores of rupees into the business, these salt companies are firm to fight it out in the court. Vasan: Not aware of CBI letter Meanwhile, Shipping Minister G.K. Vasan has put the onus of the removal of an official on the cabinet secretary, saying he was not aware of the CBI letter. The matter has to be decided by the cabinet secretary, Vasan told Headlines Today on Wednesday when asked why the government did not move even after the CBI wrote to the cabinet secretary seeking the transfer of joint secretary Rakesh Srivastava from the Union ministry as he might hinder the probe. Vasan, who also said that the government would come out with new lease rentals, stated the port has begun the eviction proceedings. The minister also said the government would abide by the court verdict, adding, the scam took place before he took over. - With Mosiqi Acharya Read more at: indiatoday.intoday.in/story/gujarat-land-scam-exposed-at-kandla-port/1/143100.html indiatoday.intoday.in/story/gujarat-land-scam-exposed-at-kandla-port/1/143100.html
Posted on: Sat, 17 Jan 2015 07:15:50 +0000
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