The proposal to unlock 38 lakh sq mtrs of SEZ land, allotted to seven proposed promoters in the Special Economic Zones, in a blatantly illegal and irregular manner, by paying them over Rs 200 crores (land cost plus interest) is nothing short of a farce and must be rejected outright by the government, for the interest of the state.
Admittedly this land will free up Goa’s land requirement for another decade or so, but why should Rs 200 crores of public money be spent on promoters, who were allotted land, in the words of the High Court, “in a manner not known to law”.
In February, the Supreme Court asked the government and the promoters to discuss and work out an amicable solution on the matter. Five of the seven SEZ promoters – K Raheja & Corporation, Peninsula Pharma Research Centre, Planetview Mercantile Co, Inox Mercantile Company and Paradigm Logistics & Distribution moved the Supreme Court after the High Court in its judgment in 2010 set aside the land allotments to all SEZ promoters, declaring it as “illegal”.
In 2001, the Supreme Court directed the Centre, State and IDC to maintain status-quo on SEZ land allotment. It is pertinent to point out that the Apex Court did not rule against the High Court’s judgment that the lands were illegally allotted. It only asked to maintain status quo on allotment.
When the issue of illegality of allotment of SEZ plots, ruled by the High Court is still sub-judice and the stinging report of the CAG of 2019 exposing the system of land allotment, in public record, how does the formula of paying the promoters of the same SEZs work?
The Apex Court in its February 2018 order asked promoters to work out an “amicable solution”. The people of Goa ask if the promoters’ demand for payment of Rs 200 crores, when they paid Rs 108 crores, which was far less than what they should have paid in the first place, is fair to the state when two of the Highest authorities, the High Court and the CAG have made stinging remarks on the way land was allotted to these companies.
The CAG in 2009 listed numerous irregularities indulged in by Goa Industrial Development Corporation (GIDC) in allotting 38,40,886 square metres of land to seven SEZs in its five industrial estates, even before an SEZ policy for the state was formed.
The CAG noted that allotments made for SEZs “not only lacked transparency but GIDC sacrificed land acquired for small and medium scale industries under the Industrial Growth Center (IGC) Scheme for the advantage of SEZ companies”.
Here’s what happened. The Verna industrial estate (VIE) was established under the IGC scheme of government of India for which financial assistance of Rs 10 crore was received. But look at what GIDC did. It extended an area of 24.05 lakh square metres allotted for five companies for SEZs in Verna, to make the allotments a part of the total area of 65.81 lakh square meters acquired for IGC. The SEZ allotments were not supposed to be part of a land acquired for small and medium growth centre companies
The GIDC also removed a clause from the lease deed that enables revision of the annual lease rent (ALR) as and when premium rates are revised. “This was an undue concession SEZ allottees”, the CAG report noted.
Then in Keri, based on requests, GIDC allotted 12.32 lakh square metres in 2006 to Meditab Specialities, a subsidiary of Cipla’s at premium rate of Rs 80 per square metre, while 2.04 lakh square metres land was allotted in Sancoale at a lease premium of Rs 270 per square metre.
As Herald had reported, Meditab was allotted land at a time when GIDC was in the process of implementing a pharma park by itself on land available at Keri and a consultant had already been appointed for the purpose.
If unlocking means getting back land illegally allotted, by paying the allottees Rs 200 plus which included over Rs 100 crores of interest payments, when the state is reeling under a financial crunch, then it is not a good deal.
Former Chief Minister Laxmikant Parsekar had then said his government would unlock the 38 lakh square metres of land in the Special Economic Zone (SEZ) and would utilize it in Goa’s interest. This unlocking, may get done if the Government agrees to the promoters. But it is not in Goa’s interest. The SEZs need to be de notified first.
Ironically, but not surprisingly, the BJP in opposition had criticized the State government for not pressing hard to get the three SEZs (special economic zones) de-notified.
The powerful SEZ promoters are fully aware of how lands were allotted to them and have also perused the High Court judgment and the CAG report thoroughly. The state should perish the idea of Rs 200 crores of public money for allotments that were not good in law.
