The Karnataka high court on Monday directed the secretary to the Karnataka Housing Department to be present before the court on Wednesday, when the court is scheduled to hearing a case in which the petitioner charged the government with violating the Foreign Direct Investment law.
The petitioner Narayan contended that the Karnataka Housing Board (KHB) in 2006 entered into a joint venture agreement with Mysore Realty Private Limited Company, which has a majority of foreign nationals on its board of directors.
The private company had only two Indians as directors with six from Israel, violating the FDI policy of the department of commerce and industries the petitioner contended.
Narayan argued that KHB was a non-profit organisation and the joint venture agreement on housing scheme for the economically weaker section and middle income group with a profit making company in the real estate business was bad in law.
He has urged the court to take action against the erring officers and appoint a committee to look into the irregularities committed by the board of directors and the officials concerned.