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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
I QUOTE
VIDARBHA JANANDOLAN SAMITI
11, Trisaran Society, In front of
Tel No. (07235) 227387/ 227564 Mob No. 9422108846 / 9822593943
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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
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
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
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
Under the disguise of Global Infrastructure Development in Vidarbha so called
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,
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
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
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
Rashtrapati Bhavan,
Raisina Hills, New Delhi-110 011.
2. Hon'ble Governor of
Malbar Hills, Mumbai
3. Hon'ble Prime Minister of
Govt. of
4. Hon'ble Chief Secretary, Govt. of
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
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 ‘
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.
1 comment:
We must be careful when looking for new builders and developers in Mumbai as the cases of cheating the property have been increasing.
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