By Mohit Sambyal
JAMMU: In rampant violation of the Industrial Policy, lease deed provisions executed by the SIDCO and the entrepreneurs and in the face of the contrarian directions of the High Court, the SIDCO has allotted land to ineligible persons causing huge losses to the state exchequer.
Sources in the Corporation informed that SIDCO is making industrial land transfers recently in favour of some entrepreneurs despite the fact it had no mandate to do so, and what’s worse, the allotees do not conform to the prescribed eligibility criteria. As per the land allotment norms, all allotments are approved by the mechanism of single window clearance committee headed either by Director Industries and Commerce or District Development Commissioner.
The role of SIDCO is limited to only execution of lease deed with the allotee of land after an order sanctioning the allotment of land is issued by the Industries and Commerce Department.
Sources informed that even portions of land from already established industrial units in IGC Samba are being transferred. Sources revealed that 33 kanals of land have been transferred from the possession of M/s Incite Home Products to M/s Zeiss Pharmaceuticals and 4 kanals of land have been transferred from M/s Kashmir Electricals to M/s VRV Industries without making a reference to the SWCC and seeking its nod.
According to sources, illegal land transfers are still continuing and recently, in as many as nine other cases, involving units namely B D Food Industries, Fresh New Products, PI Industries Ltd, B D Candles, Agro Indl Dev Corp Ltd., Mascat Electricals, Sarveshwar Overseas Mills and KG Steel Rolling Mills Pvt Ltd., land has been transferred to other units without following the prescribed criteria.
Sources further informed that some of these land transfers have been made in favour of the members of the Industrial Associations, who are reported to exercise huge influence on the industries department through brazen trade unionism and also enjoy the support of the political and bureaucratic higher ups.
According to sources, one such land transfer has been made by SIDCO in favour of the Chairman, Federation of Industries in utter violation of the lease deed provisions and in the face of the grave opposition from the I&C department. Citing specifics of the case, sources revealed that in the instant case surplus land of 2 Kanals was transferred from the possession of M/s Madeira Bottlers located in SIDCO Industrial Complex to M/S Branco Ltd, a unit owned by the Chairman FOI despite an unambiguous advisory from the I&C department to MD SIDCO to resume the land in terms of Section 34 of the relevant lease deed provision and as per the directions of the Hon’ble court in OWP No. 1343/2014 in the matter of Manish Sharma & anr. vs State & ors. However, SIDCO instead of resuming the land and placing the matter for its re-allotment before the SWCC, which allots land in the industrial estates on first come first serve basis, allotted the land in favour of Rajesh Jain, Chairman, Federation of Industries .
According to sources, SIDCO has also not resumed land in the cases where it had clear orders from the SWCC to do so. In some cases, lands have been illegally held for decades by a few individuals despite the fact that their provisional registrations have lapsed since long. As per the lease deed provisions, such lands should have been resumed and placed for re-allotment before the SWCC so that the same could be allotted to the genuine entrepreneurs. However, SIDCO has for some reasons looked the other way and allowed these unscrupulous elements to hold the land and indulge in speculative trading.
According to sources, this lobby is extremely influential and even managed to persuade the previous chairman SIDCO to authorize exemption from resumption of such long run illegally occupied land till 31-3-2016 in utter violation of the standing norms.
Sources further informed that these illegal transfers have caused huge loss to the state exchequer as the allotments made by the SIDCO/SICOP are made at the rate of 50 % of the prescribed premium. Sources informed that when the land is allotted to an entrepreneur after it is approved for allotment by the single window committee, the allotee has to pay the entire value of the land (as premium) as fixed by the government, which in Jammu District is Rs. 2 lakh per kanal up to 4 kanals of land and Rs. 3 lakh per kanal beyond 4 kanal. Citing an example to illustrate, sources informed that if 30 kanals of land is allotted to an entrepreneur in Bari Brahmana estate and he is required to pay Rs. 90 lakh as premium of land. If, however, this land is subsequently transferred to an individual independent of single window clearance committee route, the allottee has to pay merely half of the prescribed premium, that is, Rs. 45 lakh. SIDCO/SICOP, sources further informed, have been allowing such land transfers at their own level ostensibly in connivance with the associations even though under the existing norms they have to resume surplus land and place the proposals of their re allotment before the SWCC for allotment to the genuine entrepreneurs and in the process also realize the appropriate revenues by charging the admissible premia. This bypassing of laid down procedures has developed vested interest in the department which also reportedly received the patronage of the previous industries minister. This vested interest, apart from causing loss to the exchequer has also hurt the future of large number of young entreprenurs in the state where jobs are any way at a premium.
According to sources, the true extent of the loss caused to the state exchequer by these illegal land transfers would only be known if a comprehensive probe is carried out by SVO into the land allotments made by SIDCO and SICOP in recent years.
