From Our Special Correspondent
Daijiworld Media Network - Belagavi

Belagavi, Dec 3: A report of the Karnataka Legislative Assembly on alleged irregularities in the implementation of the Bangalore–Mysore Infrastructure Corridor Project by Nandi Infrastructure Corridor Enterprises (NICE) has recommended a probe by national agencies such as the Central Bureau of Investigation (CBI), Enforcement of Directorate, central vigilance commission or investigative agencies of equal standing.

Based on the survey, the committee has recommended dropping of about 11,660 acres of both private (7532 acres) and government land (3528 aces) from the project.

"These lands are lingering for a very long time under various stages of acquisition, in the absence of clear maps which the private partner is yet to submit after two decades from the date of commencement of the project the committee felt is appropriate to exclude these lands from acquisition," the committee said in its report.

The report said "illegal mining in project area (242 acres), excessive exemption from stamp duty and registration fee, excess land 605 acres, transaction not authorised under FWA (Rs 4956 crore), excessive levy of toll based in Bitumen/white topping road instead of concrete roads (Rs 1350 crore), grant of government land on lease instead of transfer by sale, deferred payment option for compensation, reduction in service charge leviable by KIADB are few instances where benefits beyond what is discussed in FWA have been extended to the private partner."

"Illegal mining in project area (242 acres), excessive exemption from stamp duty and registration fee, excess land 605 acres, transaction not authorised under FWA (Rs 4956 crore), excessive levy of toll based in Bitumen/white topping road instead of concrete roads (Rs 1350 crore) , grant of government land on lease instead of transfer by sale, deferred payment option for compensation, reduction in service charge leviable by KIADB are few instances where benefits beyond what is discussed in FWA have been extended to the private partner," the report said.

"Considering the current stages of the project, amendments and modifications to the project profile and irregularities in Framework of Agreement management, there is an urgent need to institute an enquiry fixing accountability and also for taking remedial measures," the committee said.

"The committee, therefore, recommends an exhaustive enquiry by CBI or Enforcement of Directorate or investigative agencies of equal standing," the report said.

There are 22 Articles and six schedules in FWA. The original FWA has been revised on two occasions in 1999 and 2000. In 2002 a tripartite agreement was executed between NICE, BMICE and State government.

Inclusion of a provision for "Sale of land at interchanges" in the agreement has created an unintended source of income, profit and receipt to the private partner.

According to verification conducted by Institute for Social and Economic Change (ISEC) Bengaluru, the private partner has resorted to sale, mortgage of lands besides execution of joint developments agreements. The volume of these transactions aggregate to Rs 4956 crore.

The FWA does not provide for sale of land in section ‘A’ of the project. Since the private partner is equally responsible for complying the FWA, in view of the commitments made before the Supreme Court, this transaction is against the letter and spirit of the FWA.

Based on the survey, the committee has recommended dropping of about 1160 acres of both private and government land from the project. "These lands are lingering for a very long time under various stages of acquisition, in the absence of the Cledestal Maps which the private partner is yet to submit after two decades from the date of commencement of the project the committee felt is appropriate to exclude these lands from acquisition."

Lack of coordination among various departments of the Government has led to violation of FWA.
The KIADB has been indiscriminate in acquiring lands for the project. The agreements executed by KIADB do not even remotely refer to the FWA. The PWD has not taken effective measures to enforce FWA or enforce default clause of the FWA.

The confidentiality clause of the FWA has been indiscriminately abused by the private partner.
"Non-submission of Cledestal Map, financial closure documents, alignment, land use pattern, audited balance sheets, under the guise of this clause is deplorable."

The Government has been issuing Comfort Letters to facilitate raising of loans, but has been denied access loan documents despite standing security.

The 391 page report was tabled in the House by the 11-member Committee Chairman headed by Law and Parliamentary Affairs Minister T B Jayachandra on Friday.

The report is expected to generate a lot of political debate in the coming days.