Opposition corners govt on KIADB land allotment

Opposition leaders in Legislative Council cornered the government over irregularities in land allotment by Karnataka Industrial Areas Development Board (KIADB) to Concord India Pvt Ltd.

The leaders collectively demanded the appointment of a House Committee to probe the allegations of irregularities in land allotment in the Sadaramangala (Whitefield) area.

The government assured the members that it would order a detailed probe into the matter by an official of the Additional Chief Secretary (ACS) rank.

Raising the issue during the question hour, JD(S) MLC Marithibbegowda said: “A plot of 78 acres of land worth Rs 1,696 crore in the market was allotted to a company for just Rs 39 crore. Further, the state government also incurred huge losses as they indulged in real estate business in the name of industry.

“My sources (said) there were Rs 50 crore worth of trees on the 78 acres. It was shocking that the value of these trees was also not brought to the notice of the state government. The government must immediately cancel the allotment of land and order an investigation into the allotment.”

Leader of the opposition B K Hariprasad demanded that the government constitute a House Committee since the matter smacks of irregularities to the tune of several crores.

Responding to the issue, Industries Minister Murugesh Nirani said: “At the outset, the company appears to be at fault. But we will order a detailed survey besides holding an inquiry into the entire allotment by an ACS-rank officer.”

The minister also said the government has no intention of protecting anyone. “The KIADB had allotted 78 acres at a cost of Rs 50 lakh per acre way back in 2007,” Nirani said. “Subsequently, the company had changed its name to Embassy East Business Park Pvt Ltd. The company submitted a justification that there was no change in the directorship of the company as both of them are sister concerns.”

He continued: “The land was allotted to Embassy Industrial Park Company in Dobbspet in 2021. A total of 125 acres was allocated to the company on June 3, 2021, at a cost of Rs 1.5 crore per acre. The land was allocated to the company by making a downpayment of 30% of the total value of the land which was Rs 57.37 crore,” he said.

As per the agreement’s terms, the company was supposed to pay the remaining Rs 136.77 crore to the state government before September 3, 2021.

“However, the company requested the government to change the shape of the land. But there was a delay in the acquisition of 3 acres of land that was part of the 125 acres and hence we have directed the company to pay the remaining Rs 1.39 crore per acre along with the interest,” Nirani said.

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