शनिवार, 10 मार्च 2018

Land Acquired by Achyut Samant through farudlent means causing 250 crore revenue loss to State Exchequer

Huge Revenue loss to State Exchequer due to illegalities, irregularities and undue favour  shown in respect of allotment of land to KIIT ( Kalinga Institute of Industrial Technology )  by IDCO, Govt. of Odisha  Bhubaneswar and through  fraud and forgery of Sri Ahyut Samant
Dear friends
The Performance Audit of CAG (Comptroller ad Auditor General of India ) has exposed the series of illegalities  and irregularities committed by IDCO in respect of allotting land to KIIT in Bhubaneswar, capital  city of Odisha. As per section 34 of IDCO Act, 1980, in order to promote rapid growth and development of industries, the Board could carry out a six-monthly review of the allotted plots and resume unutilised portion of allotted land by giving a notice to the allottee of the industrial estate. Further,  as per IDCO circular ( September 2004 ), no mutual transfer of industrial property was permissible and in the event of any allotted property mis-utilised, the allotment was required to be cancelled.  But IDCO continues to violate the above laws and regulations in terms of allotment of land to KIIT which resulted in loss of huge revenue to state exchequer.

Case - 1
Kalinga Software Private Limited, represented by its Director Mr. Achyut  Samata who was also Secretary, KIIT, was allotted ( October 2000) 2 acres of land in Chandaka Industrial area for manufacturing softwire goods. Sri Samanta applied ( Feb 2004 )to IDCO for mutual transfer of land of Kalinga Software Limited  in favour of KIIT  and then resigned ( September 2005 ) from the post of Director, Kalinga Software Private Limited. The Managing Director of Kalinga Software ( P) Ltd.  wrote ( April 2008 ) IDCO regarding illegal use of its letter pad and withdrew the proposal for transfer of its land to KIIT as suggested earlier. Subsequently, the Chief Manager of Oriental Bank of Commerce requested IDCO to issue “ No Objection Certificate” in their favour  as they had sanctioned a loan amounting to Rs. 51.90 crores in favour of KIIT on mortgage of allotted land. Mr. Samanta, illegally posing as the Director of Kalinga Software Private Ltd ( though he was no longer the Director at that time ) requested ( May 2006 ) IDCO to accord mortgage permission in favour of the Bank. IDCO did not take any steps to get the matter investigated by the police for possible fraud and forgery and instead accorded ( May 2006 ) mortgage permission  and finally transferred the land ( December 2010)  illegally to KIIT at the  cost of the company.

Mangalchand Telecom Pvt. Ltd.  Was allotted 3.504 acres ( plot No. 51 ) of land  for manufacturing  of jelly flitted telecom cables. It was issued show cause notice by IDCO for breach of terms of allotment and unauthorised sale of land to KIIT. But, the Company reported ( January 2009 ) to IDCO for mutual transfer of allotted land in favour of KIIT as it had received final consideration value for the land and asset and the allotted land was located just in front of KIIT. IDCO, without resuming asset and land, illegally approved the transfer of land in February 2011.

PGL Plastic Tubes Industries was allotted (December 2003) land measuring 0.989 acres for manufacture of PVC pipes. Since the plot allotted to it had been encroached upon by KIIT, another plot was allotted (October 2004) in its favour. Subsequently, though, the Company sold (July 2006 ) the same to KIIT and intimated IDCO accordingly. Show cause notices were issued ( November 2007 and January 2009 ) to PGL Plastic tubes Industries by IDCO after  more than one year for non-utilisation of land. Finally, without resuming the land, transfer of ownership of land was illegally effected ( October 2010) in favour of KIIT.

Utkal Tubes, which was allotted ( September 2002) 1.550 acres ( Plot No-31) of land in Chadaka Industrial Estate for production of galvanised pipes lodged  ( June 2004 )  an FIR with the Police station, Chadrasekhar Pur alleging that KIIT had forcibly encroached land  ( June 2004 )  the allotted land  by breaking the compound wall. Without settling the issue, IDCO asked  ( July 2006 ) to Utkal Tubes to show cause for non-utilisation of the land. Ultimately, the land was cancelled ( January 2007 ). Subsequently, without mentioning any date, it was reported by Utkal Tubes to IDCO that they had handed over the land to KIIT after receipt of the total consideration  value of the land. Finally, the plot was illegally transferred  in favour of KIIT by IDCO.

B. Engineers and Builders Limited, which subsequently changed its name to Corrosion Protection ( P) Limited , was allotted ( April 1999 ) 4.828 acres of land for manufacturing LPG cylinders and valves. It was served ( January 2009 ) Show-cause notice for breach of the conditions of allotment  by IDCO. Without mentioning any date, the company sold the plot to KIIT and suggested for transfer of ownership of the land in favour of KIIT. Finally, the land was illegally transferred ( December 2009 ) i favour of KIIT.

New Life Health Care was allotted ( May 2009 ) Ac. 0.987 of land ( plot No-A/8 & A/9 ) for assembly of exercise bicycles. The unutilised land was sold ( March 2011 ) by the Company on receipt of full consideration value from KIIT  ad the land was illegally transferred  ( December 2011) in favour of KIIT by IDCO.

In the above cases, though show-cause notices were issued  and allotments were cancelled due to violation of the terms of allotment, the land in question was not resumed. In most cases instead, mutual transfer of estate was effected in favour of transferee, i.e., KIIT without releasing the prescribed cost.

Further, in Writ Petition No. 13101/2012, the Hoourable High Court of Odisha rejecting mutual transfer of industrial estate opined that since IDCO was a lessee and sub-leased the land to in favour of one allottee, there was no provision for second sub-lease to any other party.
In view of the above, it was explicit that by wilfully not resuming the land from original entrepreneurs and instead illegally regularising mutual transfer of land in industrial estates, IDCO extended undue benefits to KIIT and suffered a loss of Rs. 73.75  crores.

Case -7  Misutilisation of land by KIIT purchased through BIFR( Board of Industrial and Financial Reconstruction) resulting in a loss of Rs. 51 crores.

KIIT purchased a piece of land of 16.200 acres from Magnrtix India Pvt. Limited ( 6.00 acres) and Indo Maxwell Limited ( 10.200 acres) through the official Liquidator, Odisha High Court. In case of Indo Maxwell Limited liquidation case, the Honourable High Court specifically instructed ( July 2006)  in Misc case No. 78/2005 that the transferred land should be utilised as per the terms and conditions of the original lease agreement, i.e., industrial purpose only.

But, in blatant disregard to the orders of the honourable court, KIIT was found utilising the land for running a school. No action was taken by IDCO for cancellation / resumption of land resulting in loss of Rs. 51 crore (calculated on the bench mark valuation of the cost of land).

Pradip Pradhan
Date- 11.3.18

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