Monday, June 15, 2009

MIHAN CRISIS-MADC under fire over land allotment-TOI Reports

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MADC under fire over land allotment

16 Jun 2009, 0651 hrs IST, Ashish Roy, TNN

NAGPUR: The Union ministry of corporate affairs has sought an explanation from Maharashtra Airport Development Company (MADC) regarding a complaint lodged by the Vidarbha Janandolan Samiti (VJAS). The samiti has alleged that there was favouritism by MADC in allotment of land to big companies, including allotment of land before it was acquired by MADC and causing loss to the exchequer by giving land at discounted prices.

MADC is developing Mihan and a SEZ near the city. The assistant registrar of companies, Mumbai, has said in a notice sent to MADC that the complaint lodged by VJAS prima facie shows that “there is material indicative of violation of Companies Act, 1956.”

The ministry has warned that if it does not receive a reply or if the reply was not relevant to the points raised by the complainant, or was haphazard or evasive, then it would take legal action against the company.

VJAS president Kishor Tiwari has alleged that MADC exhibited favouritism in allotment of land to big companies. Many companies were given land at throwaway prices, thus causing huge loss to the public exchequer, Tiwari alleged. He also claimed that allotment of land was started before completion of the acquisition process, and land was ‘reserved’ for certain companies without following due process of law.

Tiwari has said that many of these companies also raised bank loans amounting to crores of rupees by showing ownership of land allotted by MADC, even though at that time MADC itself had not become the lawful owner of the land.

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