Thursday, July 29, 2010

‘Mihan-First City’ Multi Crore Scam -Maharashtra chief minister ordered probe-VJAS

Mihan-First City’ Multi Crore Scam -Maharashtra chief minister ordered probe-VJAS

Nagpur- July 29 2010

Acting promptly on the complaint (Attached) filed by Vidarbha Janandolan Samiti(VJAS) regarding multi crore land scam in Nagpur Mihan project by Mumbai base builder M/s Reatox Builder and Developers scam ,Maharashtra Chief Minister Ashok Chavan has ordered probe in all irregularities and corruption in the matter related illegal ‘sale of flats to the private public ,totally reserved for the employees working in MIHAN-SEZ area as per existing union Govt. law of SEZ, Kishor Tiwari of VJAS informed in press release today .

As par communiqué received to VJAS Principal Secretary (Industries) A.A.Khan was initially asked to probe the matter by Maharashtra Chief Minister Ashok Chavan. But as issue is related to General Administration, he has forwarded the original complaint to Principal Secretary (GAD)

“Out of the area that is being utilised for establishing Special Economic Zone, an area admeasuring 31 acres of land is being developed by M/s Reatox Builder and Developers, under power of attorney executed by the respondent no 1 (MADC) for construction of residential complex to accommodate employees/officers working in Special Economic Zone.”

This is what the Maharashtra Airport Development Company (MADC) had told Nagpur bench of Bombay High Court on an affidavit, duly sworn by a senior officer of MADC. This candid statement has once again raised a big question-mark over legality of offer extended to general public to purchase these residential dwellings and VJAS has alleged massive malpractices in this land deal ,and VJJAS has submitted detail complaint which read and

I QUOTE

VIDARBHA JANANDOLAN SAMITI

11, Trisaran Society, In front of Somalwar School, Khamla, Nagpur – 440 025 (M.S)

Tel No. (07235) 227387/ 227564 Mob No. 9422108846 / 9822593943

==========================================

Ref: VJAS/PMO/591/2010 21/07/2010.

MOST URGENT

To,

Ashok Chavan

Hon'ble Chief Minister

Mantralaya

Munbai-400 032

IN THE MATTER OF -

MADC- MIHAN SEZ PROJECT'S PRIME LAND MEANT FOR THE RESIDENTIAL ACCOMODATION OF SEZ EMPLOYEES & FAMILIES OF WORKING PROFESSIONAL IN SEZ HAS BEEN ILLEGALLY GIVEN TO REAL ESTATE COMPANY - Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, IN A THROWAWAY PRICE BY MADC VC & MD MR. SINHA WHO IS ACCUSED OF INSTRUMENTAL FOR CORRUPTION & GROSS MISUSE OF POSITION-POWER TO the TUNE OF CRORES OF RUPEES !

SATYAM’S-MAYTAS COMPANY EX-CHAIRMAN R.C. SINHA’S ROLE AS VICE-CHAIRMAN & MANAGING DIRECTOR OF MADC LTD. NEED TO BE PROBED BY C.B.I:

MADC - MIHAN SEZ PAP-Farmers are till dying – rural economy is on the verge of collapse!

“Would you please spare few minutes ON THE MOST SERIOUS ISSUE OF CORRUPTION & GROSS MISUSE OF POWERS BY MADC’S VICE-CHAIRMAN & M.D. MR. R.C. SINHA TO GIVE ADVANTAGE TO SATYAM’S-MAYTAS COMPANY & Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, BENEFITING DUE TO HIS DIRECT INVOLVEMENT IN AWARD OF CONTRACTS WORTH CRORES OF RUPEES IN LIEU OF HELP RENDERED TO CORPORATES IN MADC’S MIHAN PROJECT BY R.C. SINHA AS ITS VICE-CHAIRMAN & M.D. !"

WHO IS RESPONSIBLE FOR DIRECT LOSS OF REVENUE TO THE TUNE OF CRORES OF RUPEES GOVERNMENT / PUBLIC FUNDS CAUSED IN THE ENTIRE PROJECT OF MADC - MIHAN SEZ ?

ARE THESE NOT SERIOUS CASES OF CORRUPTION & MISUSE OF POWERS BY HIGH PROFILE PERSONS LIKE SINHA ?

unfortunate PROJECT AFFECTED farmers HAVE BEEN EXPLOITED AND VIRTUALLY THROWN in extreme distress and due to complete failure of MAHARASHTRA Govt. TO CHECK THE CORRUPTION & MISUSE OF POWERS.

Ref:NEXUS BETWEEN POLITICIANS- MIHAN-MADC’S VICE-CHAIRMAN & MANAGING DIRECTOR MR. R.C. SINHA, WHO WAS CHIEF OF SATYAM’S-MAYTAS COMPANY & THIS ENTIRE LINK USED TO BENEFIT Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, NEED TO BE PROBED !

Respected HH Hon’ble Rashtrapati Mahodaya,

You are well aware that, since last one decade our organization–

Vidarbha Jan Andolan Samiti, is raising the issue of plight of poor farmers who are in extreme distress & suffering the heat of failure of Govt. policies of Liberalization / Globalization / Free Economy, which has resulted in complete collapse of Indian Rural Economy and perhaps unfortunately Vidarbha Region has been termed as Epicenter of farmers suicides and is till witnessing a live lesson to learn.

From the days Honourable Manmohan Singhji occupied the Office of Prime Minister of India in May 2004, we have been keeping you informed about the plight of farmers & agrarian community in Vidarbha and their distressed conditions. We have also kept Your Honour posted regularly with the facts & figures of the ruining Indian Rural Economy in the backdrop of Government Policies promoting Liberalization / Globalization / Free Economy and so called Development & Global Vision. We always prayed for your humble intervention in the interest of justice to the Project Affected Peoples-Farmers & Rural India.

Hon’ble President Madam, with this representation, we invite your kind attention towards most serious issue of Gross Corruption & misuse of power by the high profile persons in the name of development & infrastructure building in Vidarbha at Nagpur through the project like MADC’s MIHAN - SEZ which was being projected as so called “Global & Vision Project” of Vidarbha, an epicenter of Farmers Suicides in which thousands of farmers have killed themselves. Host of the Project Affected Persons (PAP) and Farmers on the verge of losing their lives. The information received from the inside sources is alarming and quite shocking. We want to share it with you and demand detailed CBI enquiry into the affairs of MADC’s MIHAN Project and corruption-misuse of power-favoritism which caused loss of revenue to the tune of crores of rupees of the public exchequer. One of such glaring example of gross misconduct in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses given to M/s Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, at throwaway price by the blessing of MADC VC & MD Mr. R.C.Sinha who has closed links with politicians who are behind the promoter of said Real Estate Company Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ. This land allotment to M/s Reatox was done without framing any Land Disposal Rules by the MADC nor calling any competitive bids. The entire land has been sold / given on 99 years long lease (as good as sale) to the said Reatox Company by MADC on such a throwaway price, that cannot be imagine by common man, whereas said Reatox Company now selling the flats to public atlarge on Rs. 40,000/- per sq.m. and that too the unrelated persons other than SEZ employees. Such land disposal and its sale or long lease is against the norms of Government Control Companies. The entire process adopted by MADC is highly objectionable and is the case of gross misconduct to cause grave loss to the public funds and the Government Revenue. As per the information made available by MADC, upto 31.01.2010, MADC has spent Rs. 728.63 Crores on the infrastructure of the project. Out of which, only Rs. 9.02 Crores has been spent on Social Infrastructure for Project Affected People, this shows how casually the Project Affected People are being treated. On the other hand, multinational and corporates have been given due advantage of land sold / given on 99 years long lease (as good as sale) on throwaway price without recovering any cost of infrastructure being developed at the cost of several hundred crores from the treasury of State Government and/or the funds being made available from the financial institution controlled by the Government of India or PSUs.

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.” (MADC) 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.

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 Hectors of cultivatable agricultural land of poor farmers was put to an acquisition under the Land Acquisition Act. Even though, land acquisition process pertaining to entire land is yet to be completed in its true legal meaning & sense, 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.

ii) One of such glaring example of gross misconduct in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses given to M/s Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, at throwaway price by the blessing of MADC VC & MD Mr. R.C.Sinha who has closed links with politicians who are behind the promoter of said Real Estate Company Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ.

iii) Other Corporate-Multinational Beneficiary of such land allotment were as under :-

Satyam – 130 Hectors,

HCL – 140 Hectors, Wipro – 117 Hectors,

Vipul & Karamchand – 50 Hectors,

Reatox – 60 Hectors, Residential First City Project of REATOX Ltd., a company of BJP Leader,

HCL – 31 Hectors,

SICOL Logistics Gupta Coal – 80 Hectors,

Ambuja Realities – 55 Hectors,

Kolland – 100 Hectors,

L&T Infotex – 50 Hectors,

TCS – 54 Hectors,

Ascend – 60 Hectors,

DFL – 140 Hectors,

Boing – 45 Hectors,

Health City – 40 Hectors, MRO – 72 Hectors,

iv) The bare perusal of the beneficiary reveal that the allotment was made to the favoured without even completion of acquisition & ownership was reserved illegally without following due process of law. The irregularity were committed while allotting SEZ Land to the residential project of the said 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 which got huge chunk of land disproportionate to their requirement for IT Projects, generally requires very small land of 10 to 20 Acres are not turned up and not even started their operations even after many years of allotment. Thus, in MIHAN Project, the beneficiaries have got several hectors 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 said projects 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 in continuation to the series of gross misconduct, authorities of MADC - MIHAN SEZ went ahead in granting lease of land meant for the residential accommodation of employees of the companies - organizations in the SEZ and their families houses given to M/s Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ, at throwaway price by the blessing of MADC VC & MD Mr. R.C.Sinha who has closed links with politicians who are behind the promoter of said Real Estate Company Reatox Builders & Developers Pvt. Ltd, promoter of First City, a residential-cum-commercial complex coming up in the Mihan-SEZ. It is surpirising to note that how the land which is meant for residential accommodation of working professional at SEZ has been given to Reatox Company for sale / lease in open market to investors and capitalist, who all have invested crores of rupees in the said township ? This all needs to be probed by CBI and all culprits need to be booked under relevant provisions of law for cheating the public atlarge, especially the Project Affected People - Farmers of the regions.

vii) It is also 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.

viii) The misuse of powers and the positions at the hands of Mr. R.C. Sinha is quite interesting. For e.g. SICOL Logistics-Gupta Coal had got contract for MADC’s Rail & Logistic Terminal, on the other hand Maytas company got EPC Contract worth Rs. 450 Crores from Guptas. There were several examples like this. Mr. Sinha had become Director on the Board of Ambuja & Indu Projects, the direct & indirect beneficiaries of MIHAN Project of MADC Ltd. and now left these companies. The land allotted has been misused by over valuation in raising funds from the financial institutions by these companies in which involvement of MADC Officials is clearly seen. Now the land thus allotted are till lying unused without any projects coming thereon.

ix) Family Members, Relatives, Politicians blessed by VC & MD of MADC Ltd were the direct & indirect beneficiaries of the Corporates to whom MADC favoured at MIHAN Project & its SEZ 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. Hence this need to be probed by independent CBI probe and culprits are to be booked immediately in the interest of Project Affected People - Farmers near Nagpur.

x) 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.

xi) 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.

xii) The entire affairs at MADC Limited vis-à-vis advantages gained by Maytas, Reatox 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.

xiii) 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 ? Why the Projects have not come up in the said MIHAN - SEZ project ? These vital questions need to be answered by the independent enquiry.

xiv 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 benefits of MIHAN Project benefits. The Political Leaders taken on Rent by the Big Wigs of MIHAN who all are beneficiaries of MIHAN MADC were 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 8 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.

Hon'ble HH President Mahodaya, Vidarbha agrarian crisis coupled with gross corruption in the vision project like MIHAN is a live example of how we are proceeding in a Global Economy in which issues of Rural India, Project Affected People & Farmers have thrown to back benches.

We will be highly obliged, if you could spare few minutes to ON THE MOST SERIOUS ISSUE OF CORRUPTION & GROSS MISUSE OF POWERS BY MADC LTD VICE-CHAIRMAN & M.D. TO GIVE ADVANTAGE TO REATOX BUILDERS, 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.

We hope you will consider our request and order immediate CBI Enquiry, as the funds from Central Government and the PSU Controlled by Central Government alongwith State Undertaking are involved in the Project MIHAN - SEZ of MADC Limited in which Mr. R.C. Sinha is involved. In fact, a complete white paper on the facts & figures is needed in this grave case, involving high ranking bureaucrats, politicians & big Corporates.

We also pray for personal hearing and opportunity of adducing evidence to demonstrate our case.

Hence prayed accordingly.

Yours faithfully,

For VIDARBHA JANANDOLAN SAMITI,

KISHORE TIWARI,

PRESIDENT

CC to :

1. Her Highness Hon'ble Dr. Hamid Ansari ,

Vice President of India,

Rashtrapati Bhavan,

Raisina Hills, New Delhi-110 011.

2. Hon'ble Governor of Maharashtra State, Rajbhavan,

Malbar Hills, Mumbai

3. Hon'ble Prime Minister of India,

Govt. of India, PMO, NEW DELHI.

4. Hon'ble Chief Secretary, Govt. of Maharashtra,

Mantralaya, Mumbai-400 032.

UNQUOTE

As report published by local leading dailyy it is reported that the affidavit was filed by MADC in response to a petition filed by M/s Suretech Hospital questioning the motive of MADC to acquire its land at Mouza Chinchbhuvan for rehabilitation of project-affected persons of MIHAN. Incidentally, the rehabilitation work over 58 hectare land, too, has been entrusted to M/s Reatox Builders- the firm which is coming up with ‘First City’ project in MIHAN-SEZ area.

In the instant case, M/s Suretech had claimed that its land was required for constructing a hospital and research centre and that MADC had ample land already acquired and same could be used for rehabilitation of MIHAN PAPs. It was suggested that land allotted to M/s Reatox Builders within MIHAN-SEZ can be utilised to construct houses for villagers displaced by MIHAN-SEZ.

However, the MADC opposed the prayer stating that “a policy decision has been taken to rehabilitate project affected persons from the area falling in NMC limits in Chinchbhuvan village which is situated within NMC limit. Regarding the project-affected persons falling outside NMC limits, the respondent no 1 (MADC) has decided to resettle them in village Khapri Rly which is situated beyond the NMC limits.” Against this backdrop, the MADC had informed the High Court that land developed by M/s Reatox Builders inside SEZ area (First City Project) is essentially to create residential complex to accommodate employees/officers working in the Special Economic Zone.

The ‘First City’ project was launched on November 4, 2007 and was expected to be completed within 27 months as per the term of lease. Initially, ‘First City’ was to have 12 building of 18 floors each. However, the Airports Authority of India raised objection to such a height stating that project was situated in funnel area of airport and would pose danger to aircraft’s landing at Nagpur airport. This forced M/s Reatox to lower the height by five floors and redesign the project.

Apart from objections raised by Airports Authority of India (AAI), the First City Project is also facing another hurdle, since the Board of Approvals (BoA) has directed the MADC which is developer of SEZ and M/s Reatox Builders which has received approval as co-developer to remove condition of sale from its agreement and power of attorney granted by MADC in favour of M/s Reatox Builders.

Ironically, the BoA stand which is based on provisions of SEZ Act and Rules was also adopted by MADC before the High Court in which it categorically stated that First City Project was meant to house people directly connected with SEZ. The SEZ Act clearly states, “The Developer shall not sell the land in a Special Economic Zone..” and rules also stipulate that residential units should be primarily sold to persons connected with SEZ activities. Therefore, the Board of Approvals (BoA), the apex decision making body for SEZ has consistently maintained that no developer or co-developer can sell the land or residential dwelling to general public and extended this principle to ‘First City’ coming up at multi product MIHAN-SEZ promoted by MADC, during its recent meeting held on July 13.

The minutes of the meeting clearly mentioned that BoA raised objection over “agreement of MADC with all its co-developers which contained the condition that the flats built by such co-developers would be sold by them to public and MADC has issued Power of Attorney to such co-developers for such sale.” The BoA has directed the MADC remove condition of sale from its agreement with co-developers (in the instant case M/s Reatox Builders)

VJAS moved for urgent intervention of Indian president and prime minister to expedite the action of cancellation of land allotment and subsequent flats allotment to legitimate claimant MIHAN-SEZ promoted by MADC as per SEZ laws and rules framed thereinafter, Tiwari added.

85 Thermal Power Station in Vidarbha --Very Serious Environmental Disaster in future......


85 Thermal Power Station in Vidarbha --Very Serious Environmental Disaster in future......

SEVEN VIDARBHA FARMERS SUICIDE IN LAST TWO DAYS-HT


SEVEN VIDARBHA FARMERS SUICIDE IN LAST TWO DAYS-HT

Saturday, July 24, 2010

VJAS welcome Maharashtra Govt. decision to stop Land Development Bank (LDB) auction Vidarbha farmers land

VJAS welcome Maharashtra Govt. decision to stop Land Development Bank (LDB) auction Vidarbha farmers land

Nagpur -24th July 2010

Vidarbha Jan Andolan Samiti,(VJAS)which is spearheading a campaign against the defunct Land Development Bank’s forcible recovery drive from farmers in distressed western Vidarbha, has welcomed the Maharashtra Government decision to stop the Land Development Bank (LDB auctioning process of the land of farmers who have not been able to replay the loans taken before 1997. It is expected that thousands of farmers in the state will be saved from this decision, with around 3,000 in distress-hit Vidarbha itself, Vidarbha Jan Andolan Samiti, president Kishore Tiwari informed in press note today after the regional TV channel broke the news .

“We are indebted to Maharashtra Govt. and Co-Op Minister Harshwardhan Patil in particular for taking very sensitive stands and stop auction the land belonging west vidarbha who are already distressed and drought hit .VJAS has sent requisition for LBD loan waiver as this is hoax as bank ahs recovered more than double from these dying farmers’ Tiwari said.

VJAS also thanked media for their kind cooperation which mounted pressure on the Maharashtra Govt. and informed the administration misdeed and atrocities being done to the debt trapped dying farmers of vidarbha resulting the suicides .

“we have been demanding the white paper on vidrabha relief package and mega loan waiver and it failed address the on going agrarian crisis but central is not responding to it’ Tiwari added.

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Friday, July 23, 2010

Farmers' land to be auctioned in Maharashtra to recover loans-Gulfnews Report

Farmers' land to be auctioned in Maharashtra to recover loans

http://gulfnews.com/news/world/india/farmers-land-to-be-auctioned-in-maharashtra-to-recover-loans-1.658392

Auctioning off land will begin in Yavatmal, Akola, Washim, Wardha, Amravati and Buldhana in western Vidarbha with full police protection from July 23 onwards, it was decided by bank authorities.

  • By Pamela Raghunath, Correspondent
  • Published: 17:34 July 23, 2010


  • Image Credit: Gulf News

Mumbai: The Maharashtra government is all set to auction off 50,000 acres of land of 3,000 farmers in the suicide-prone Vidarbha region to recover unpaid rural bank loans.

"This is a cruel turn of events for farmers who have faced successive crop failures and who have had the misfortune of not being covered under the mega central and state government loan waiver schemes only because their land exceeded two hectares," Kishor Tiwari, who heads an organisation representing farmers, the Vidarbha Jan Andolan Samiti, told Gulf News on telephone from Nagpur.

He says the farmers are up in arms against this move to recover their land, house and belongings and flays the government that has defensively stated that there will hardly be any small farmers on this list of defaulters. "Farmers," he says, "are taken aback by the government's version that they were willfully defaulting, hoping for yet another round of waiver schemes. The government's attitude is ‘it is time some action was taken against them.'"

Auctioning off land will begin in Yavatmal, Akola, Washim, Wardha, Amravati and Buldhana in western Vidarbha with full police protection from July 23 onwards, it was decided by bank authorities. District collectors have been asked to monitor the recovery process, said Tiwari.

The Land Development Bank (LDB) officials are expected to auction off the land of farmers who have not been able to repay the loans totalling Rs250 million taken before 1997. Officers have been warned that those who fail to follow the orders will face stern action on or before July 31, 2010.

"This is the recent order issued by Subhash Mane, Managing Director of LDB. The state government-owned bank was liquidated due to huge losses. Farmers are at a loss to understand why the government is so keen to recover this amount which is miniscule compared to the Central and state government loan waivers of Rs710 billion and Rs62 billion respectively."

What is worrying is that no local politician, legislator or MP from political parties is willing to listen to the distress of farmers. The VJAS has urged Prime Minister Manmohan Singh for his intervention failing which another spiral of suicides by farmers will begin, says Tiwari. "Our organisation is also filing a public interest litigation in the court to stop this forceful recovery."

Land Dev. Bank(LDB) Farm Debt Recovery-Govt. is misleading media-VJAS

Land Dev. Bank(LDB) Farm Debt Recovery-Govt. is misleading media-VJAS

NAGPUR: 23RD JULY 2010


*Puroshottam Ingale of village Tigoan in wardha who has taken loan of 2,90,000 in the year 2001 and already repaid Rs.6,09891 and now LAD bank has served notice for recovery of Rs. 2,91,387 *

Vidarbha Jan Andolan Samiti has flays state Govt version that ‘There are hardly any small farmers on the list. It will be the bigger ones who will face the stick, It was also seen that many farmers were willfully defaulting, hoping for yet another round of waiver schemes. It was time some action was taken against them," as this is misleading the fact at ground level where all cotton farmers are in distress due to debt moreover farmers listed by LDB are the most venerable and exploited one by state run corporative banks ,Kishor Tiwari informed in press note.

The Land Development Bank (LDB) officials are defending their action of auctioning off the land of farmers who have not been able to replay the loans taken before 1997. It is expected that thousands of farmers in the state will face action, with around 3,000 in distress-hit Vidarbha itself. According to a rough estimate by Vidarbha Jan Andolan Samiti, up to 50,000 acre land may have been mortgaged with LDB by the defaulting farmers of Vidarbha alone.

‘If officers who is sitting in air-conditioned chambers would seen the present condition of so called bigger and rich farmers who are listed for land auction then they will understand what nonsense they are talking about ??

‘here is the case one cotton farmer Puroshottam Ingale of village Tigoan in wardha who has taken loan of 2,90,000 in the year 2001 and already repaid Rs.6,09891 and now LAD bank has served notice for recovery of Rs. 2,91,387 (copies attached) and arranged the auction of all movable and other properties ’Kishore Tiwari claimed .

‘Government sources are also misleading said that selling the land would be the last resort, with other options being exercised first as other than land there is hardly any thing to sale and recover from these dying farmer. This is just rubbing salt on the wound of the distressed farmers. We have already begun opposing the move tooth and nail and will not allow the auction of single inch of land vidarbha farmer’Tiwari said.

“We are shocked to see the recent orders of Maharashtra Govt. as this region is till facing drought and last year there was crop failure and moreover bankers failed to reconstruct crop loan and fresh credit and now this forceful recovery by auctioning land ,house or anything ,this is highly irritating and unjustified act of state which is forcing the distress farmers to commit suicide ,VJAS has decided to stop all such auctioning process by beating officers and by violent agitation as these are excess of senior officers who are sitting in air conditioned chambers in Mumbai and Delhi and mainly responsible mass genocide of vidarbha farmers since 2001 ’Tiwari added.

VJAS has urged Indian Prime Minister Dr.Manmohan Singh for his urgent intervention in this recovery process that will result in another spiral of vidarbha cotton farmers suicides as all relief packages and loan waivers failed to provide any relief to these dying farmers.

“When Govt. has spent more than Rs.5000 crore in fraudulent relief packages and mega loan waiver amounting more than Rs.78,000 crore loan wiaver which was turned out to be another hoax then why this forceful Rs.25 crore recovery that will result the auction of land of 3000 distress vidarbha farmers which would have been easily avoided but nobody is there in administration to attaend the lst cry of these dying farmers’ Tiwari said.

VJAS is moving application in their PIL of farmers suicides urging the High court to stop these forceful recoveries of Maharashtra Govt., press release added.

Thursday, July 22, 2010

The Land Development Bank Land Auction-'Only bigger farmers will face the stick'-TIMES OF INDIA

Printed from

'Only bigger farmers will face the stick'

NAGPUR: The Land Development Bank (LDB) will start auctioning off the land of farmers who have not been able to replay the loans taken before 1997. It is expected that thousands of farmers in the state will face action, with around 3,000 in distress-hit Vidarbha itself. According to a rough estimate by Vidarbha Jan Andolan Samiti, up to 50,000 acre land may have been mortgaged with LDB by the defaulting farmers of Vidarbha alone. Samiti president Kishore Tiwari claimed that the bank was now threatening to auction this land belonging to already distressed farmers.

However, government sources said that selling the land would be the last resort, with other options being exercised first. Farm activists have already begun opposing the move tooth and nail.

At the same time, those in the cooperation department, under which the LDB operates, say that most of the defaulters are big farmers, who owe amounts up to Rs 7 to 8 lakh. These loans were mainly taken for purchasing tractors, sinking borewells, levelling of land and other fixed assets. "There are hardly any small farmers on the list. It will be the bigger ones who will face the stick," said a senior official in the cooperation department.

Farmers' activists have said that LDB was not part of the loan waiver scheme, so farmers who took loans from there have not even got benefit of the waivers. However, LDB officials point out that all the loans being targeted now are term loans, and not farm loans, which were covered under the loan waivers.

LDB will begin by sending notices, after which it is hoped that farmers may come up with some amount, and ultimately save their land from being sold.

The LDB dues in Nagpur and Amravati divisions, which cover the entire Vidarbha region, come to around Rs 50 crore and Rs 13 crore respectively. Even though these loans were granted to buy other assets, the ultimate charge comes on the land holdings. Some of the assets were purchased in 1970s or 80s, so selling those assets will not realise much and the land will have to be auctioned, said a source.

"It was also seen that many farmers were wilfully defaulting, hoping for yet another round of waiver schemes. It was time some action was taken against them," said an officer involved in the bank's affairs.

LDB has a two-tier structure with an apex bank in Mumbai and offshoots in each district. The bank would avail finance from National Agriculture and Rural Development Bank (Nabard). On account of poor recovery, Nabard could not be repaid. The state government then provided funds to repay Nabard as well as for other purposes.

However, with defaults continuing, the bank owed a total Rs 1,200 crore to the state government, which has paid Nabard on behalf of LDB. The bank still owes the amount to the state government. It was on account of its inability to repay the state government's dues that it was decided to cease operations of the bank in 1997.

As per the recommendations of the Baidyanath Committee, the bank would be reimbursed half the amount, provided it generates the rest through recoveries. After this, there are chances that the activities of the bank may resume, which in turn will also benefit farmers, said a source

Debt-hit Vidarbha farmers stare at land loss-ET

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Debt-hit Vidarbha farmers stare at land loss
23 Jul 2010, 0426 hrs IST,ET Bureau


MUMBAI: Scores of farmers mired in debt in the arid cotton belt of Vidarbha in Maharashtra are close to losing their property rights, as the state-controlled Land Development Bank has kick-started the process to recover dues from them.

A top revenue ministry official said the process to recover loans by selling off land belonging to those farmers who have defaulted is “definitely on” and could start as early as July 23. SK Goel, principal secretary,
co-operation and marketing, declined comment.

It is now a well-accepted fact that mega loan amnesty schemes, such as the ` 71,000-crore waiver announced by the central government and the state’s ` 6,240-crore loan waiver, excluded many farmers in the state. The waiver was applicable only for loans contracted from a government-backed institution. But in the hinterland, most farmers borrow from money lenders. Many of them could not avail of the amnesty schemes, as the eligibility was restricted to those having two hectares or below.

More-than-half of Vidarbha’s 35-lakh farmers own more than two hectares and, therefore, according to the government scheme, can only obtain a loan waiver of 25% of their outstanding loan instead of a total write-off. These stiff terms for the loan waiver kept out a large number of farmers in the region.

Now, the state government wants to recover the remaining 75% of the loans that have not been paid back until now. “According to rules, the Land Development Bank needs to recover loans within five years from disbursement. More delay than the stipulated time makes it mandatory for the bank to recover its dues by selling the immovable assets, in this case, the land,” an official associated with the exercise told ET.

He said necessary orders to take over the properties of farmers have been issued and the powers to take possession of defaulters’ land have been vested with the respective district deputy registrars. “These officials have demanded police protection. This is being extended to complete the process,” a Nagpur-based government official said.

The meeting convened by the district deputy registrars on Wednesday has finalised the process of loan recovery in the suicide-prone districts of Yavatmal, Akola, Washim, Wardha, Amaravati and Buldhana. “We are shocked to know about the loan recovery orders. It’s inhuman for the state to begin forceful recovery by auctioning land property.

Nothing can be worse for the distressed farmers,” said Kishore Tiwari, president Vidarbha Jan Andolan Samiti. The Samiti and other such organisations have decided to launch an agitation from Friday to oppose the state’s loan recovery drive.

A top union agriculture ministry official, when asked to comment on the issue, admitted that the loan recovery process has been launched. “There is a motive behind it. The recovery drive will pressure the government to waive off the remaining portion of the loan too,” he said.

Maharashtra Govt. set to auction 50,000acres land of Three Thousand Dying Vidarbha farmers to recover ‘Bank Debt’ from 23rd July –VJAS


Maharashtra Govt. set to auction 50,000acres land of Three Thousand Dying Vidarbha farmers to recover ‘Bank Debt’ from 23rd July –VJAS

Nagpur -22nd july 2010

‘As more than 3 thousand farmers who are having loan amounting to tune of Rs.25 crore from respective district land development bank as they failed repay loan due successive crop failure and drought il last decade in vidarbha and they were not covered under Rs.71,000 crore mega central Govt. loan waiver and Rs.6240 crore extended state loan waiver ,under the power wasted to Maharashtra Govt. under cooperative act ,ordered to recover the debt by auctioning all movable and other belonging of ‘Debt Trapped’ drought hit farmers of vidarbha immediately and those officers failed to follow the orders will have face stern action on or before 31st July 2010’ this is recent order issued by Subhash Mane (I.A.S.) Managing Director and Chief Administrative of Maharashtra Land Development Bank ,state Govt. owned bank with equity participation of Nabard (R.B.I.),officially liquidated due to N.P.A. and accumulated huge losses even after frequent state and R.B.I. ‘Bail Out Packages’ due massive corruption of hostile bank directors of respective District Land Developments Banks.

The meeting called by District Deputy Registrars(DDRs)in suicide prone agrarian crisis hit west-vidarbha at Yavatmal ,Akola ,Washim ,Wardha ,Amaravati ,and Buldhana ,it has been decided to start auctioning of land of defaulter farmers with full police protection by 23rd July ,Friday .all district collectors have been asked to monitor the recovery process and arrange to provide all necessary help wherein required, Kishor Tiwari,President Vidarbha Jan Andolan Samiti (VJAS)informed in press note today.

“We are shocked to see the recent orders of Maharashtra Govt. as this region is till facing drought and last year there was crop failure and moreover bankers failed to reconstruct crop loan and fresh credit and now this forceful recovery by auctioning land ,house or anything ,this is highly irritating and unjustified act of state which is forcing the distress farmers to commit suicide ,VJAS has decided to stop all such auctioning process by beating officers and by violent agitation as these are excess of senior officers who are sitting in air conditioned chambers in Mumbai and Delhi and mainly responsible mass genocide of vidarbha farmers since 2001 ’Tiwari added.

VJAS has urged Indian Prime Minister Dr.Manmohan Singh for his urgent intervention in this recovery process that will result in another spiral of vidarbha cotton farmers suicides as all relief packages and loan waivers failed to provide any relief to these dying farmers.

“When Govt. has spent more than Rs.5000 crore in fraudulent relief packages and mega loan waiver amounting more than Rs.78,000 crore loan wiaver which was turned out to be another hoax then why this forceful Rs.25 crore recovery that will result the auction of land of 3000 distress vidarbha farmers which would have been easily avoided but nobody is there in administration to attaend the lst cry of these dying farmers’ Tiwari said.

VJAS is moving application in their PIL of farmers suicides urging the High court to stop these forceful recoveries of Maharashtra Govt., press release added.

Tuesday, July 20, 2010

कृषीमंत्र्यांमुळेच खताचा काळाबाजार ; विदर्भ जनआंदोलन समितीचा आरोप

कृषीमंत्र्यांमुळेच खताचा काळाबाजार ; विदर्भ जनआंदोलन समितीचा आरोप


http://loksatta.com/index.php?option=com_content&view=article&id=87496:2010-07-20-17-25-38&catid=45:2009-07-15-04-01-33&Itemid=56
नागपूर, २० जुलै / प्रतिनिधी
कृषी अधिकारी बदलीच्या घोडेबाजारात गुंतले असल्याने खत टंचाई होऊन काळा बाजार सुरू झाला. यासाठी कृषी मंत्रीच जबाबदार असल्याचा आरोप विदर्भ जनआंदोलन समितीने केला आहे. खत टंचाईला कंटाळून एका शेतकऱ्याने आत्महत्या केल्याचा दावाही समितीने केला आहे. गेल्या १ जुलैपासून कृषी मंत्रालयातून बदली व पदोन्नतीचे आदेश जारी होत आहेत. पॅकेज अंतर्गत पाणलोटसाठी कोटय़वधी रुपयांचा निधी आलेल्या जिल्ह्य़ांमध्ये नियुक्तीसाठी धडपड सुरू आहे. त्यामुळेच विदर्भ व मराठवाडय़ात खत टंचाई निर्माण होऊन काळाबाजार होत आहे. ३१ मे पूर्वी बदली व पदोन्नतीचे निर्णय व्हावे, असे शासनाचे धोरण असताना कृषी मंत्रालयात जुलैमध्ये बदल्या व पदोन्नती कशा सुरू आहेत, असा सवाल समितीचे नेते किशोर तिवारी यांनी केला आहे.
कृषी मंत्र्यांनी १ ते १३ जुलैदरम्यान शंभरहून अधिक बदल्या केल्या आहेत. यात जिल्हा कृषी अधिकारी, जिल्हा गुण नियंत्रक, तालुका कृषी अधिकारी आणि उपविभागीय कृषी अधिकाऱ्यांचा समावेश आहे. मंत्र्यांच्या सचिवांनी ४५० पदांवरील बदली व पदोन्नतीची यादी तयार केली आहे. सर्व नियम धाब्यावर बसवून पदोन्नती करण्यात येत आहेत. यात कोटय़वधी रुपयांचा गैरव्यवहार झाल्याचा आरोपही तिवारी यांनी केला आहे.
विदर्भाच्या यवतमाळ, वाशीम, अकोला, बुलडाणा, वर्धा व चंद्रपूर आदी जिल्ह्य़ांसाठी असलेला खत पुरवठा कृषी मंत्रालयाने मराठवाडा, खानदेश आणि पश्चिम महाराष्ट्राकडे वळवला आहे. नागार्जुन आणि गोदावरी कंपनीचे शेकडो टन खत युरिया व रासायनिक खताचा काळाबाजार सुरू आहे. यास कृषी मंत्री जबाबदार आहेत. गेल्या आठवडय़ाभरापासून खतासाठी भटकणारा हिवरा येथील शेतकरी चिमन आत्राम याने गळफास लावून आत्महत्या केल्याचा दावाही समितीने केला आहे.
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