The Telugu Desam Party on Wednesday demanded an enquiry through Central Bureau of Investigation into the allotment of Wakf land to Hindujas in 2007 in Visakhapatnam for setting up of a power plant.
Addressing a press conference at NTR Trust Bhavan, Leader of the Opposition in the Legislative Council Dadi Veerabhadra Rao demanded immediate cancellation of the second agreement that the State Government had with the Hindujas in 2007 during the regime of YS Rajasekhara Reddy as the Chief Minister. He said that the agreement has caused a loss of Rs 10,000 crore to the State.
Veerabhadra Rao gave a copy of proceedings of Public Accounts Committee which met on April 10. The PAC has decided to obtain a comprehensive report and specific replies to the questionnaire based on the audit done by the Comptroller and Auditor General of India from the Revenue, Minorities and Energy departments on why the power project was not set up even after 10 years of allotment of land.
The PAC directed the Special Chief Secretary and Chief Commissioner Land Administration to constitute a committee to examine the issue and submit a comprehensive report by April 23.
It may be mentioned that in February 2004, the Andhra Pradesh High Court decreed that the title of the land allotted to HNPCL belonged to the Wakf Board. However, four years later, in March 2008, government directed the Wakf Board to sell the land to HNPCL, at rates prevailing in 1999. The Wakf Board accordingly sold the land to HNPCL in April 2008 at old rates for a total consideration of Rs 47.55 crore as against the prevailing market value of Rs 224.47 crore.
The PAC sought to know whether government is empowered to direct the Wakf Board to allot Wakf lands to private parties. Further, what were the reasons for allotment of land to HNPCL without public auction, although Section 51 of the AP Wakf Act stipulates that sale of property is to be affected only through public auction. The PAC also asked the government to explain the reasons for non-resumption of the land and selling the land to the same party at the rates prevailing in 1999.
Further, on September 1, 2010, the HNPCL offered to surrender about 500 acres of unutilised land to the Wakf Board. However, on September 5, 2010, the Wakf Board rejected the offer.
In its questionnaire, the PAC sought to know the terms and conditions government the agreement with Hindujas National Power Corporation Limited when the land was allotted initially. The project should have been completed within a period of 44 months from the date of financial closure. However, it was extended from time to time up to March 31, 2001.
Since the HNPCL had not set up the power plant, in 2007, APGENCO/NTPC requested the government to allot this land to them for the purpose of power generation. Requests were also made to the government by APTRANSCO for inviting open bids from private companies to fetch competitive lower power tariffs as against the supply of power by HNPCL on non-competitive rates. NTPC had also requested the government to provide part of this land for expansion of Simhadari Extension project. However, these options were not explored by the government, the PAC said.
Veerabhadra Rao alleged that the State Government has flouted all norms to favour the Hindujas and demanded CBI enquiry into the matter.
–Agencies