NICE diverted 756 acres for real estate biz, says report

House committee puts value of land at Rs 7,077 crore

NICE diverted 756 acres for real estate biz, says report

 A House committee which probed the irregularities in the implementation of the Bangalore-Mysore Infrastructure Corridor project has found that the promoters of the project diverted 756.33 acres for real estate purposes.

The 11-member committee, headed by Law Minister T B Jayachandra, tabled its 392-page report in the Legislative Assembly on Friday.

The report states that the market value of land illegally diverted by Nandi Infrastructure Corridor Enterprise (NICE), the promoters of the project, is Rs 7,077 crore.

According to the framework agreement signed between the state government and NICE, land acquired for link road and peripheral road cannot be diverted for housing projects. The agreement specified that layouts and commercial complexes can come up only in the five townships along the BMIC expressway.

The report states that NICE had submitted an affidavit to the Supreme Court that 6,999 acres were required for the peripheral road and link road. The company had also given an undertaking before the Apex Court that the land acquired would not be utilised for real estate or commercial purposes.

However, NICE has violated the provision of the framework agreement and its assurance given to the Supreme Court. In addition, it illegally entered into joint development agreements with various builders, the report notes.

The House committee scrutinised the sale deeds, encumbrance and mortgage deeds that NICE had signed with real estate developers.

Also, Bengaluru-based Institute of Social and Economic Change was requested to estimate the value of the land. Besides, the documents available at sub-registrar offices and the guidance value of the land were also taken into consideration. It was estimated the land diverted for real estate purposes was worth Rs 4,951 crore. According to the present the market rate, the value of the land is estimated at Rs 7,077 crore, the report states.

The report states that the land could not have been diverted without the involvement of officials of the Public Works Department, Law Department and Bangalore-Mysore Infrastructure Corridor Area Project Authority.

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