A PIL filed by lawyer Subhash Jadhav alleges that Rane’s generosity has cost the state exchequer a loss of over Rs100 crore.
The alleged ‘largesse’ of Revenue Minister Narayan Rane in granting concessions to steel-maker Mukand Ltd for the sale of its 25 acre plot in Kurla has been challenged in the Bombay High Court. A PIL filed by lawyer Subhash Jadhav alleges that Rane’s generosity has cost the state exchequer a loss of over Rs100 crore.
The sprawling plot situated on LBS Marg was sold to a consortium of four developers for Rs221 crore in December 2005. The PIL alleges that in 1950, the government had sold the land to Mukand Ltd at a concession rate to set up a steel plant. A 1957 government resolution (GR) imposed a condition that if the land was sold or redeveloped in the future, 50 per cent of the plot’s total market value would have to be paid to the government as ‘unearned income’.
In March 2003, Mukand Ltd, which is jointly-owned by former West Bengal Governor Viren Shah and industrialist Neeraj Bajaj, sought permission to sell/redevelop the plot stating that they were willing to pay 50 per cent of the land’s market value. In May 2003, the collector allowed for the sale/redevelopment of the plot upon payment of the ‘unearned income’.
On September 5, 2005, the principal secretary (revenue) reiterated that sale of the land would be permitted only upon recovery of the unearned income. However, on September 14, 2005, Rane passed an order stating that Mukand Ltd was not required to seek prior permission from the government for sale/redevelopment of the land. Stating that the principal secretary (revenue) had erred in insisting on payment of the unearned revenue, Rane directed the collector to make the necessary changes thereby sparing Mukand from payment of 50 per cent of the land’s market value.
The petition, which has sought quashing of Rane’s order and an inquiry into the passing of the order, is likely to be heard on January 31.
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