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House panel says Nice violated toll pact

Last Updated 09 March 2015, 20:21 IST

The State government is yet to act against the promoters of Nandi Infrastructure Corridor Enterprise Ltd (Nice) for violating an agreement with the government and collecting toll “illegally” since 2012.

In 2000, the government, while sanctioning toll collection by Nice, had mandated that a concrete road was a must within six years after constructing an asphalted road.

The asphalted road, as per the agreement signed by the parties, has to be constructed within two years from the date of financial closure. The financial closure, as noted by the state law department, was on March 29, 2004.

The company, however, failed to construct the concrete road within the stipulated deadline of March 29, 2012. The law department opinion states that Nice should be served with a default notice.

The department opinion cites a Cabinet note in 2000, which states that if Nice failed to fulfil the clauses, then toll collection could be revoked.

Three months after the law department opinion was sought by Law Minister T B Jayachandra, who heads the Legislature House Committee probing irregularities by Nice, the government is still awaiting the opinion of Advocate General (A-G) Ravi Verma Kumar.

Kumar’s opinion was an option which was given to the government by the law department. Members of the House Committee have now raised questions over the delay in the A-G’s version being submitted to them.

In its four-page opinion, the department has stated: “Admittedly, the project company has not constructed two-lane concrete road nor converted two-lane asphalt road into concrete road within the stipulated time; thereby it has committed breach of the terms and conditions of the Framework Agreement. Therefore, the State government could invoke Art 16 (of the agreement) and issue default notice to the project company regarding revocation of the Toll Concession Agreement dated September 4, 2000.”

Sources in the government said the committee has voiced its objections on the “illegal” toll collection on Nice road.

Further, the committee has taken into cognisance that close to 3 km after the road has ended, towards Tumakuru, has been “unnecessarily” acquired for the project.

The entire extent of land which has been “unnecessarily” acquired is between 500 and 1,000 acres. Sources said that the committee has received several complaints from farmers and local residents in the region during their inspection earlier this year.

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(Published 09 March 2015, 20:18 IST)

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