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Ex-chief minister Vilasrao Deshmukh parcelled off land to Subhash Ghai: CAG

A PIL, filed in October last year, states that the institute promoted by Ghai got the 20-acre land after gross misuse of power by Deshmukh during his tenure.

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The Bombay high court on Thursday asked the state to reply to allegations that its former chief minister and Union heavy industries minister Vilasrao Deshmukh had breached rules while allotting land to film-maker Subhash Ghai and a trust in Latur.

The division bench of chief justice Mohit Shah and justice SJ Kathawala was hearing a public interest litigation filed by Latur resident Rajendra Sontakke and four other agriculturists citing a Comptroller and Auditor General of India report, which has pointed out several irregularities in allotment of land to Whistling Woods, Ghai’s Goregaon-based firm that offers film-making courses, for operations in Latur under the aegis of Vilasrao Deshmukh Foundation.

Two earlier PILs had also questioned these allotments. The judges clubbed the three, admitted them, and directed the state to reply to the CAG report within four weeks.

The PIL, filed in October last year, states that the institute promoted by Ghai got the 20-acre land after gross  misuse of power by Deshmukh during his tenure as the CM.

According to the petition, the Maharashtra Film Stage and Cultural Development Corporation Limited (MFSCDCL) entered into a joint venture with Ghai’s Mukta Arts to start Whistling Woods at an authorised share capital of Rs20 crore. Mukta Arts was to invest  Rs17 crore and MFSCDCL was to get the land allotted. MFSCDCL and Mukta Arts were to share equity at the ratio of 15: 85% respectively.

The petitioners alleged that Deshmukh was interested in the joint venture because of his film star son Riteish. Their advocate Mahesh Jethmalani told the court, “The land was valued at Rs325 per sq m instead of the prevailing market rate of Rs3,900 per sq m.”

The petitioners stated that despite the CAG report on undue benefits to a private company, no action has yet been proposed against the officers who undervalued the land. They asked for a Central Bureau of Investigation inquiry, and demanded that these allotments be quashed and the land be returned to the government. The matter has been adjourned to January 13 next year.

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