PANJIM: The industry is peeved with the unilateral and arbitrary hike in lease rentals for plots in industrial estates by Goa Industrial Development Corporation (GIDC) and has called it ‘illegal’. Industry is so angry that Verna Industrial Association (VIA) is in talks with various lawyers and contemplating to take GIDC to court.
During an extraordinary general meeting of the VIA on April 11, it was decided to seek legal opinion and oppose the GIDC decision of increase in lease rent and water tariff. It was also decided to share the charges and fees for legal procedures among all the VIA members. An email with details and mode of contributory payment has been sent to all VIA members.
“In view of above, it is decided to contribute at Re 1 per square meter of the plot area initially. Further contribution will be initiated in case of shortage of funds in future. We are already in touch with many lawyers but have not finalised it yet. We will do it very soon,” VIA president Damodar Kochkar told Herald.
He added that in the first week of April, GIDC changed the rates without consulting anyone and the lease rates were fixed at Rs 8 up to 2000 square meters and then Rs 16 for a plot from 2001 to 5000 sq mts and from 5001 to 10,000 it was Rs 24 per sq mt and 10001 and above Rs 32 per sq mt. In many cases in the agreement the lease rent is fixed for 30 years or 99 years. “You cannot change this unilaterally. This is illegal. In Verna, in some cases the percentage rise is about 2000 per cent. We will oppose this change,” Kochkar said.
Recently, addressing about 50 industrialists including GCCI members and representatives from nearly all 22 industrial estates at the Goa Chambers of Commerce and Industry (GCCI), the GCCI industry committee chairman Yatin Kakodkar said, “The fundamental problem is that GIDC has a political appointment of its chairman and the decision made by the board of directors are bypassed by its chairman. Newspapers have reported extensively on corruption in GIDC. Thirty per cent of their expense goes in taking care of their swelled staff. What is the contribution of the staff? What is their efficiency? What is the long term plan? All these issues had led to the hike in rent but at the same time it has hit very badly on ease of doing business.”
Kakodkar further alleged that GIDC was cash rich but asked where the has money gone? He added, “They started to divert the money meant for industry development to other corporations and now they are asking us to pay for it. Rs 50 crore needs to be recovered from lease rents. Why aren’t they doing it in the first go? We do not get any “return” on the tax we pay to GIDC. Why is industry being asked to pay for road repairs in industrial estates? If they are charging us house tax and infrastructure tax it the duty of the GIDC to provide us such facilities.”
Herald also spoke to Goa State Industries Association president Raj Kumar Kamat on the issue who said, “All the present lease agreement which are contracts between GIDC and unit holders must be modified to reflect the long term defined nature of the lease rents as the changes cannot be affected just be a mere decision of the board of GIDC.”
