VIDARBHA JANANDOLAN SAMITI
11, Trisaran Society, In front of
Tel No. (07235) 227387/ 227564 Mob No. 9422108846 / 9822593943
Ref: VJAS/PMO/176/09 Date : 13/06/2009
PRESS NOTE : MADCL - MIHAN PROJECT ENQUIRY ORDERED
GOVT. OF INDIA’s MINISTRY OF CORPORATE AFFAIRS ORDERED PROBE AGAINST MADCL- MIHAN PROJECT FOR GROSS MISUSE OF POSITION & POWER BY ITS CHIEF R.C. SINHA & OTHER DIRECTORS CAUSING LOSS TO the TUNE OF CRORES OF RUPEES !
SATYAM’S-MAYTAS COMPANY CHAIRMAN R.C. SINHA’S
MINISTRY OF CORPORATE AFFAIRS ASKED MADCL TO EXPLAIN –
WHO IS RESPONSIBLE FOR DIRECT LOSS OF REVENUE TO THE TUNE OF CRORES OF RUPEES GOVERNMENT / PUBLIC FUNDS ?
ARE THESE NOT SERIOUS CASES OF CORRUPTION & MISUSE OF POWERS BY DIRECTORS LIKE SINHA ?
ACTION INITIATED ON THE COMPLAINT OF VIDARBHA JAN ANDOLAN SAMITI ALLEGING NEXUS BETWEEN POLITICIANS-SATYAM’S RAJU & MIHAN-MADC’S VICE-CHAIRMAN & MANAGING DIRECTOR MR. R.C. SINHA, WHO WAS THEN CHIEF OF SATYAM’S-MAYTAS COMPANY TOO.
Nagpur, Dated 13th June, 2009,
Taking serious cognizance of complaint of Shri Kishore Tiwari, President - Vidarbha Jan Andolan Samiti against most serious issue of corruption & misuse of power by the Directors & other persons involved in “Maharashtra Airport Development Authority Ltd.” (MADCL) – MIHAN Project in the name of development & infrastructure building which is being projected as so called “Global & Vision Project” of Vidarbha, Govt. of India has now ordered detailed enquiry through Ministry of Corporate Affairs against the Public Limited Company MADCL which controls MIHAN Project.
Taking the information in the complaint and further documents submitted by Mr. Tiwari during personal hearing as strong prima facie evidence, then Union Minister for Corporate Affairs – Mr. Prem Chand Gupta, prior to dissolution of 14th Loksabha, made it a point to have the detailed investigation in the entire affairs of MADCL & MIHAN Project due to large scale corruption-misuse of power-favoritism which caused loss of revenue to the tune of crores of rupees of the public exchequer by the Directors like Mr. Sinha and other high profile IAS Officials named on the Board of MADCL. There are several Ministers being Ex-office bearers of the said company and perhaps this might be first case involving prosecution of the top IAS officials alongwith Ministers on the Board of Directorate of MADCL, if found guilty in the enquiry.
Ministry of Corporate Affairs vide its directions has now ordered detailed enquiry through Registrar of Company (ROC) at Mumbai under whom the powers of Criminal Prosecution has been delegated by Govt. of India. The affairs of said Public Limited Company - MADCL are controlled by ROC Mumbai which has been registered as a Public Limited Company with the said ROC under the provisions of Companies Act, 1956. There are series of allegation of gross violations of the provisions of the Companies Act & entire affairs of MADCL is running like a private shop owned by one single handed person, all contrary to the provisions of the Companies Act and the Corporate cultural.
The detailed enquiry has been ordered against MADCL on the basis of the following complaint made by Mr. Tiwari of which details are as under :-
i) Government of Maharashtra under the Chairmanship of Chief Minister of the State has formed a company named “Maharashtra Airport Development Authority Ltd.” (MADCL) under the provisions of Companies Act, 1956 in which many Government / Public Undertakings have been forced to contribute as share capital. Ex-Bureaucrat-Mr. R.C. Sinha, Retd I.A.S. was made Vice-Chairman & Managing Director of MADC with many top ranking IAS Officials were named as Directors on BOD of MADC Ltd., which started implementing big project in the name of MIHAN Near Nagpur and started projecting the said project as “Global & Vision Project” of Vidarbha.
ii) Under the disguise of Global Infrastructure Development in Vidarbha so called Vision Project – MIHAN – SEZ - HEALTH CITY – LOGISTIC TERMINAL- TOWNSHIP, ETC. were proposed by MADC Ltd.. Hundreds of Hectares of cultivatable agricultural land of poor farmers was put to an acquisition under the Land Acquisition Act. Even though, land acquisition award pertaining to entire land is yet to be passed, MADC Ltd, VC & MD Mr. Sinha started allotment & sale of prime land to the Multinational Corporates in a mysterious & hurried manner, even in pre-primary stage of the project.
iii) The Corporate-Multinational Beneficiary of such land allotment are as under:-
Satyam – 330 Hectares, HCL – 140 Hectares,
Wipro – 117 Hectares, Vipul & Karamchand – 50 Hectares,
Reatox – 60 Hectares,
HCL – 31 Hectares,
SICOL Logistics Gupta Coal – 80 Hectares,
Ambuja Realities – 55 Hectares,
Kolland – 100 Hectares,
L&T Infotex – 50 Hectares,
TCS – 54 Hectares,
Ascend – 60 Hectares,
DFL – 140 Hectares,
Boing – 45 Hectares,
Health City – 40 Hectares,
MRO – 72 Hectares,
Residential First City Project of REATOX Ltd., a company of BJP Leader, – 360 Hectares,
iv) The bare perusal of the beneficiary reveal that the allotment has been done to the favoured without even completion of acquisition of land & ownership was reserved illegally without following due process of law. The irregularity were committed while allotting SEZ Land to the residential project of First City of Reatox Company, which was later disallowed by SEZ Board of Ministry of Commerce, Government of India, but the prime land was sold to many parties illegally and unauthorisedly. Even Bank Loan to the tune of crores of ruppes were raised by such companies under the disguise of ownership of land allotment by MADC. On the contrary, MADC was still to become lawful owner of the land at the time of such allotment made to the beneficiary company. This all has completed in a gross irregular manner contrary to the provisions of the MADC aims and objectives and the Rules governing disposal of land by the Government controlled companies in which Chief Minister is involved as a Chairman of MADC Ltd.
v) It is also matter of great surprise that most of the IT Companies in MIHAN Project have got huge chunk of land disproportionate to their requirement for IT Projects which generally requires very small land of 10 to 20 Acres, whereas in MIHAN Project, the beneficiaries have got several hectares of land in few bucks, thanks to the element of corruption, favouritism, misuse of power and position by the Big Wigs in MADC Ltd. and the Politicians who all are helping the project in turn getting benefits from Corporates at the cost of poor farmers who lost their valuable lands and means to live respectful lives. The entire process of huge allotment of land on throw away prices to the Big Corporates is a matter of great concern. It is quite strange that MADC sold the pieces of huge chunk of land to Corporates in the primary stage itself, without even recovering any development cost of the project including basic cost of land. If we calculate the cost of acquisition of land, development, cost of infrastructure, environment and other overheads, even lay man can analyse how costing / pricing has been ignored by MADC Authorities while making allotment of land to such Corporates, in which Government Funds and Revenue has been lost. This all needs to be thoroughly probed in a sequential & transparent manner to punish the culprits behind the racket.
vi) It is shocking to note that Sometime in 2007, MADC Vice-Chairman & MD Mr. R.C. Sinha managed to become Chairman of Maytas Company, which was promoted by one Mr. Raju, Satyam Managing Director’s son. Interesting Satyam is the beneficiary of the land allotment at MADC’s MIHAN Project. After becoming Chief of BOD of Maytas Company, started playing game of misuse of powers & position. On one hand Mr. Sinha was providing benefits of MADC’s MIHAN Project to Corporates and on the other hand said Corporates were mysteriously giving contracts including EPC Contracts to Maytas company, for the obvious reasons.
vii) The misuse of powers and the positions at the hands of Mr. R.C. Sinha is quite interesting. For e.g. SICOL Logistics got contract for MADC’s Rail & Logistic Terminal, on the other hand Maytas company got EPC Contract worth Rs. 450 Crores from beneficiary thereof. There are several examples like this. Mr. Sinha become Director on the Board of Ambuja & Indu Projects, the direct & indirect beneficiaries of MIHAN Project of MADC Ltd.
viii) Family Members, Relatives, Politicians blessed by VC & MD of MADC Ltd are the direct & indirect beneficiaries of the Corporates to whom MADC favoured at MIHAN Project either in allotment of land or otherwise. If you examine the share holders list and other business interest of these Corporates, the family members, relatives, closed friends and politicians blessed by VC & MD of MADC Ltd., you will come to know the truth.
ix) The assets & properties built by the relatives, family members, closed friends and politicians blessed by VC & MD of MADC Ltd. either in India or overseas specially in United States and Switzerland including Bank accounts in Swiss Bank will speak about amazing wealth acquired disproportionate to the known source of income directly in contravention of the provisions of Prevention of Corruption Act & other penal / criminal provisions of the Laws of the Land including violation of the provisions of Companies Act, 1956, FEMA Act and Income Tax-Wealth Tax Act.
x) In such a way, Vice-Chairman & MD of MADC Mr. R.C. Sinha helped many corporates like Maytas company in which he was Chairman, Ambuja & others in which he or his family members, relatives, close friends were directly or indirectly involved. The misuse of position and power to give benefit and pecuniary advantages to the company in which he has direct personal interest is nothing but a matter of open corruption. The revenue loss caused to the public fund due to favouratism is a great matter of national concern.
xi) The entire affairs at MADC Limited vis-à-vis advantages gained by Maytas and other beneficiary companies directly or indirectly with the influence, misuse of power & position by the person directly involved in both the entities give signals of open corruption which needs to be thoroughly probed and punished under the provisions of Laws of the Land, so that common man could not loose faith & belief in Rule of Law.
xii) Now, the root question raised in our mind that WHO IS RESPONSIBLE FOR DIRECT LOSS OF REVENUE TO THE TUNE OF CRORES OF RUPEES GOVERNMENT / PUBLIC FUNDS ? ARE THESE NOT SERIOUS CASES OF CORRUPTION & MISUSE OF POWERS BY HIGH PROFILE PERSONS LIKE SINHA ? These vital questions need to be answered by the independent enquiry
xiii) It is highly regretted that lacs of small investors are being cheated in Nagpur under the disguise of investment in land in the name of MIHAN Project benefits. The Political Leaders taken on Rent by the Big Wigs of MIHAN who all are beneficiaries of MIHAN MADC are involved in propagating & deceiving thousands of youths by promising them immediate jobs – employment in MIHAN Project, whereas not a single job-employment is created even after 6 Years of the MADC Ltd. incorporation. Poor & Medium Classes are being exploited by land mafias in the name of MIHAN Project in Vidarbha Area. Farmers are also being cheated by the tall promises given by the Political leaders who all have been virtually Rented/Pocketed by the Big Wigs of MIHAN to whom these leaders have been virtually sold out. The tall promises given by such politicians rented to the Corporates has created a great racket being operated to cheat & loot common man in the name of MIHAN Project & Global Development of Vidarbha Region.
In his complaint, Vidarbha Jan Andolan Samiti President – Mr. Tiwari further demanded that people will be highly obliged, if Govt. of India orders immediate enquiry ON THE MOST SERIOUS ISSUE OF CORRUPTION & GROSS MISUSE OF POWERS BY MADC LTD VICE-CHAIRMAN & M.D. MR. R.C. SINHA TO GIVE ADVANTAGE TO SATYAM’S-MAYTAS & OTHER COMPANIES BENEFITING DUE TO HIS DIRECT INVOLVEMENT IN AWARD OF CONTRACTS WORTH CRORES OF RUPEES IN LIEU OF HELP RENDERED TO CORPORATES IN MIHAN BY R.C. SINHA.
Taking serious cognizance of the complaint & further representation & documents submitted by Vidarbha Jan Andolan Samiti, Govt. of India has now ordered detailed enquiry into the affairs of MADCL through Registrar of Company, Mumbai and has sought detailed explaination on the above vital points raised in the complaint by Mr. Tiwari.
In the event if MADCL fails to give satisfactory explaination to ROC on all issues raised in the complaint, ROC will launch Criminal Prosecution under the provisions of Companies Act read with other provisions of Indian Penal Code for alleged violation of the statutory provisions in the functioning of said Public Limited Company MADCL. There are several Ministers being Ex-officio Directors alongwith top IAS official on the board of said company and perhaps this might be first case involving prosecution of the top IAS officials alongwith Ministers on the Board of Directorate of MADCL, if found guilty in the enquiry.
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For VIDARBHA JANANDOLAN SAMITI,
Vidarbha Jan Andolan Samiti