AG slams MTDC for Ratnagiri land deal with pvt firm

The accountant general (AG) has slammed the Maharashtra Tourism and Development Corporation (MTDC) for leasing out a large plot to a private company, in which one of its directors was involved.

According to a report of the AG, the state tourism body gave the land of about 45 acres in Ratnagiri to Krishnali Resort, on a payment of just Rs1 lakh. The company refused to pay the balance Rs48 lakh stating that it would do so only after the remainder 13 acres promised was handed over to it.

Vidya Belose, who was a director with MTDC, is also a director with Krishnali Resort.

MTDC subsequently cancelled the contract and the matter went to court which gave an order in its favour.

"The court also opined that Vidya Belose, who in spite of being a director of MTDC, did not safeguard the interest of the company (MTDC) and took the land for her own benefit," the AG stated.

The report states that while the proceedings were pending in the high court, the two parties reached an out-of-court settlement, according to which the lessee was to pay the remaining land cost along with the interest totalling to Rs1.11 crore immediately. But Rs33 lakh remains unpaid till January this year.

Over this, the AG stated that "the company while agreeing for out-of-court settlement should have ensured that the land was handed over to the party only after receipt of the entire land value and dues since the party had a dubious track record."

The matter further deteriorated as the lessee published an advertisement in a prominent national daily under the heading 'Business Proposal', thereby intending to create a third party right on the property.

In 2013, MTDC decided to initiate proceedings under the Eviction Act in order to terminate the lease and take back possession of the land, since the lessee had violated the provisions of the agreement. However, the arbitration proceedings have not started yet, the audit report concluded.