Hyderabad, April 24: In an apparent snub to the state government, Justice C V Nagarjuna Reddy of the High Court on Friday stayed the allotment of land in Paravada Pharma City near Visakhapatnam in favour of Trydax, a company that reportedly has the son of minister Kanna Lakshminarayana on its board.
The court was hearing a petition filed by SMS Pharma, the original allottee of the land. The petitioner said Trydax was given 19 acres from the 42 acres land originally allotted to it.
SMS Pharma says it fully paid Pharma City promoter Ramky for the land allotted to it, in addition to 88 per cent of the development charges.
Yet a portion of the land was transferred to Trydax.
When contacted, AP Industrial Infrastructure Corporation (APIIC) executive director D Muralidhar Reddy said Ramkey had to give a part of the land to Trydax because SMS Pharma failed to set up its facility within the stipulated period of two years.
Reddy said Ramky wanted all the allottee companies to start work simultaneously so that the common facilities could be used properly, and staggered completion of the project would pose problem in creation of facilities to the ones that start their units late.
Besides, he said, SMS Pharma had not entered into a sale agreement with APIIC and did not pay the total amount to the developer. Muralidhar Reddy said Ramky was given a free hand in dealing with the allottee companies for comprehensive development of Pharma City.
SMS pharma had been postponing its project completion by seeking time from Ramky, Reddy said.
He said land allotment to 11 companies has been cancelled since they were unable to ground their projects in time. ‘‘There is no foul play behind the cancellation of land allotted to SMS Pharma or its transfer to Trydax,’’ he said.
–Agencies