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Gujarat government nod to dissolve land development corporation

Decision taken in wake of charges of corruption and financial irregularities

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The Gujarat government on Wednesday gave the sanction to dissolve its Public Sector Undertaking (PSU) Gujarat State Land Development Corporation (GSLDC) over corruption charges and financial irregularities by office bearers. The cabinet led by Chief Minister Vijay Rupani gave approved the dissolution of the GSLDC.

Announcing the government's decision, Agriculture Minister RC Faldu said: "The government has decided to wind up the Gujarat State Land Development Corporation following allegations of corruption and financial irregularities. This government has adopted zero tolerance policy against corrupt practices and irregularities, and the decision is the result of the same."

"Investigation by different agencies revealed that GSLDC had become a pool of corruption and irregularities had no limit in GSLDC. The same had come to the government's notice too and in the interest of people, we have decided to dissolve the corporation," Faldu said.

Since the PSU is registered under Company Act, the government will follow the procedure before shutting the same.

"Since the GSLDC comes under agriculture department, we will initiate the process for dissolution soon after the CM's nod today. GSLDC's staff, vehicles and other machinery will be shifted to the departments which have been assigned the responsibility of GSLDC after it had gone defunct following the corruption cases," Faldu further added.

The departments given the responsibility are rural development and panchayat department and water supply and irrigation department.

A scam involving GSLDC Managing Director KS Detroja and six other officials was unearthed by the Anti-Corruption Bureau in April this year. The agency had recovered assets worth crores from these officials including Rs. 56.50 lakh cash, jewelry and swanky apartments.

The ACB had arrested Detroja and Joint Director KC Parmar on charges of taking bribes from farmers who had applied for government grants under various schemes run by the GSLDC. Besides, 25 cases of irregularities were also registered against the GSLDC for producing fake bills.

What is GSLDC?

The GSLDC was formed under Companies Act, 1956, on March 28, 1978. The main objective of the GSLDC was to undertake various soil and water conservation programmes for land development and execute various state government schemes on watershed basis. The company's role was also to provide technical and financial help to farmers in constructing farm ponds for their irrigation needs.

DOWN THE GRAVE

  • The cabinet led by Chief Minister Vijay Rupani approved the dissolution of the GSLDC 
     
  • Since it is registered under Company Act, government will follow the closure procedure 
     
  • The department was given the responsibility of rural development, panchayat department and water supply and irrigation department
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