From esg@bgl.vsnl.net.in Sun Apr 3 12:27:08 2005 Date: Thu, 31 Mar 2005 19:00:12 +0530 From: ESG India VSNLReply-To: esg@esgindia.org To: esglist@esgindia.org Cc: bangaloresolidarity@yahoogroups.com, invites@yahoogroups.com, 'EIA watch' , nathistory-india@Princeton.EDU, bngcore@yahoogroups.com, PUCL@yahoogroups.com, sanaej@yahoogroups.com, 'India-Ej' , forestrights@yahoogroups.com, 'OneWorld South Asia Partnership' Subject: [ESG-INDIA-LIST] 10, 000 acres EXCESS ACQUISITION! THE UNIMAGINABLE LAND SCAM that BMIC Project is Today [ Part 1, Text/PLAIN (charset: ISO-8859-1 "Latin 1") 1,317 lines. ] [ Unable to print this part. ] [ The following text is in the "iso-8859-1" character set. ] [ Your display is set for the "US-ASCII" character set. ] [ Some characters may be displayed incorrectly. ] The Bangalore Mysore Infrastructure Corridor was cleared in 1995 by the Government of Karnataka, and the project awarded to a consortium, to build an expressway and 5 townships between Bangalore and Mysore. All along there was stiff opposition to this project, even fundamental questions on its very need. Yet the government aggressively pushed the project that could potentially displace thousands of farmers in about 180 villages. But that if the project developer, Nandi Infrastructure Corridor Enterprise, had stuck to the original design demanding 18,000 acres of land. Instead, now, 29,258 acres of land is in the process of acquisition for NICE, which has begun trading with these lands. "Confidential' documentation previously unavailable to the public, now in our possession, reveals the massive fraud that has been perpetrated to defeat the very purpose of the project, and dispossess thousands of farmers, mostly small and marginal farmers, and thousands more landless labourers. The Karnataka Government has now taken a stand that it will allow the project based on the original design. But should it at all support this disastrous project? Enclosed please find a Release highlighting the main issues involved. Also enclosed is a detailed Representation made to the Chief Secretary of Karnataka by various organisations. The annexures to the Representation are online at: www.esgindia.org. Watch this website for more documents exposing this unimaginable scam. Leo Saldanha Environment Support Group (R) S-3, Rajashree Apts. 18/57, 1st Main, SRK Gardens Bannerghatta Road, Jayanagar Bangalore 560041. INDIA Telefax: 91-80-26531339/26534364 Fax: 91-80-51179912/26341977 Email: esg@esgindia.org; esgindia@touchtelindia.net; esg@bgl.vsnl.net.in Web: www.esgindia.org 10,000 acres EXCESS ACQUISITION! THE UNIMAGINABLE LAND SCAM that BMIC Project is Today Clearly there is no other project in the country that bears as much influence on the future of appropriate infrastructure development, than Karnataka’s experience with the Bangalore Mysore Infrastructure Corridor Project. Conceived to decongest and help proper development of the Bangalore Mysore region, the main achievement of Nandi Infrastructure Corridor Enterprise (NICE), the project developer, has been to phenomenally abuse the questionable access it had to government and private resource, even as its credentials as a developer has remained in doubt. The role of the Government, depending on who is in power, has varied quite a bit. Initially, many viable alternatives were easily dismissed. This included the expansion and redesigning of existing highways and doubling of railway track, that required very little land acquisition and investment. BMICP was aggressively promoted, instead, as the only way out to contain the rapid urbanisation and unplanned growth of Bangalore. As matters stand now, a decade since BMICP was approved, the expansion to four lanes of the existing Mysore Road (SH-17) is nearing completion and similar work on Kanakapura Road (NH-309) is being initiated - at minimal cost compared to BMIC (currently estimated at Rs. 4,000 crores). Additionally, the doubling of the Bangalore-Mysore railway line is imminent, and could positively influence land development in existing towns and cities improving their economic worth and quality of infrastructure. In such context, would BMIC Project be required at all? The BMIC townships - designed for the rich and wealthy and not the burgeoning middle class who contribute to the bulk of the city’s population growth - are nowhere near initiation even. As for the toll based, limited access expressway, all that NICE has achieved is land grabbing, not in mere tens, but thousands of acres. Not just ordinary abuse of power, but phenomenal abuse of Eminent Domain powers based on collusion amongst key officers of the Government and the company has resulted in over 10,000 acres of excess acquisition of lands! And here’s how this was done: 1. When the BMIC project was first approved by an MOU between then Chief Minister Deve Gowda and Governor William Weld of Massachusetts, USA, as part of a sister state agreement, a consortium involving Vanasse Hangen Brustlin (VHB, USA), SAB Engineering (SAB, USA), and Kalyani Group (India) was to undertake the project on BOOT basis. A GO was passed on the basis of the MOU on 20th November 1995 (No. PWD 32 CSR 95) authorizing acquisition of 18,313 acres of land for the development of an expressway (including peripheral road, link road and attendant facilities in and around Bangalore) and five townships between Bangalore and Mysore. Based on recommendations of the High Level Committee and the consortium’s Project Technical Report, Government land would be provided only on lease at Rs. 10/acre to support the initiative. 2. In 1997, Nandi Infrastructure Corridor Enterprise (NICE) entered the picture claiming the rights assigned to the consortium. The fact that VHB, the only technically competent member of the consortium had walked out of the project, was never brought to the notice of the government. One of the signatories to this release did repeatedly inform the Government, including through the press, of this fact. But it chose to remain silent then. The Government of Karnataka has now contested that this assignment of consortium rights to NICE was illegal, a stand that has been explicitly made before the Hon’ble High Court of Karnataka in WP 45386 of 2004 (PIL). 3. Meanwhile, NICE never focused on developing the project per design. Instead, it colluded with key GOK officials to illegally acquire large extents of land based on, what turns out to be, phenomenal abuse of power. Most of these lands were acquired in and around Bangalore, in clear violation and deviation from approved plans, which only allowed for development of Peripheral Road and Link Road. The livelihood of thousands of small and marginal farmers was destroyed in the process, as their lands were acquired at rates far below commercial rates giving them no opportunity of buying other lands. NICE benefited immensely and promptly began selling the acquired lands at commercial rates. 4. The scale of such largesse handed over to a private agency is unprecedented. If the 2,450 acres of excess land around Bangalore assigned to NICE were articulated in money terms, this would constitute a largesse of Rs. 10,000 crores (at Rs. 1000/sft, the current rate in remote extensions). NICE having freehold rights over this land could at any time in the future exploit the real estate potential at rates far higher than what it is today. 5. As repeated efforts by public interest groups and individuals to get the Government to check this abuse of power went unheard, affected farmers requested former Prime Minister Shri. Devegowda to intervene. Shri. Gowda brought this to the notice of His Excellency Shri. T. N. Chaturvedi, Governor of Karnataka, in several representations through March and April 2004. 6. On this basis, the Governor sought all files connected with BMIC, and within two months reviewed the whole matter to finally state, that lands far in excess of actual requirements were notified for acquisition. In specific, the Governor held that: 1. Overall about 30% of private land is notified in excess of actual requirement. 20,825 acres of private land was notified when what was actually required is about 15,000 acres. This constitutes an excess of 5,702 acres of private land alone for the overall project. 2. In specific relating to the toll based expressway, the total acquisition is 6,999 acres, when only 5120 acres was required. This constitutes an excess of 1,879 acres or 37%. 3. With regard to the interchanges (totally 16, including 8 around Bangalore), 3065 acres has been acquired, against the actual requirement of 1186 acres. This constitutes an excess acquisition of 1878 acres or 158%. 4. It is also observed that about 4970 acres of government land has already been leased out to NICE, who in turn have used it as “security for securing loan from the financial institutions”. The Governor recommended the Chief Secretary to take “appropriate action” but no such action followed. It is ironical that the Government of Karnataka has not brought this letter to the notice of the Hon’ble Court in the ongoing arguments on the matter. Recently, the Hon’ble High Court of Karnataka in its interim order (dated 10 March 2005) on a PIL filed by Legislators Madhuswamy (JD-U) and Sriram Reddy (CPI-M) on the Bangalore Mysore Infrastructure Corridor Project, have stated that they are “perturbed with the stand taken by the State Government” as it now argues that “the framework agreement is the result of a fraud and misrepresentation made by the Company” (M/s Nandi Infrastructure Corridor Enterprise). The Hon’ble Court has thereby observed “it appears that the State Government is not very sure of what it proposes to do in the matter” directing the Chief Secretary “to file a detailed affidavit as a response of the State Government to the writ petition clearly bringing out the stand of the State Government and what it proposes to do in the matter.... on or before 31st March 2005”. Scandalous revelations of Shri. Anees Siraj, Spl. DC KIADB – BMICP: In a shocking revelation, Mr. Anees Siraj, Spl. Deputy Commissioner of KIADB - BMICP, in his letter dated 22 May 2004, confirms that 29, 258 acres of land has been notified for the project, an excess of about 10,945 acres, compared with the original 18,000 acres agreed to! He confesses thus: “Land Acquisition notifications were issued based on the requirement indicated by the promoter company and not on the basis of any technical drawings/maps as approved by the Government in PWD or the project report”. In the same letter, he also clarifies the extraordinary extent to which NICE has played a role in acquiring land, statin: “(d)enotification of 2728 acres was issued (vide Gazette dated: 11-2-2004) relating to lands indicated by the company as not required” This statement from a designate officer in charge of land acquisition of the project is absolute proof that NICE and its supporters within the Government have made a mockery of the process of planning, acquisition and compensation. Clearly, this is evidence for a special investigation to be instituted on how Mr. Siraj, and other such responsible officers, at all allowed such land acquisition to take place in total violation of the public interest and basic tenets of the Principle of Eminent Domain. A thorough examination of the acquisition undertaken by an expert review committee constituted by the present Government and headed by Padmashri Awardee Shri. K. C. Reddy, has established in its interim findings, that excess land acquisition around Bangalore alone is 2,450 acres. It has recommended that such lands must be returned to the original owners. Keeping this in view, it is high time that GOK must put public interest above everything else and confirm in no uncertain terms that it will not tolerate fraud and misrepresentation by NICE and complicit officials any longer. This is a time for the Government to set right the wrongs committed as advised by the Governor, as recommended by the Reddy Committee and as sought for by the Hon’ble High Court of Karnataka. It is a time to ensure that the development of the Bangalore Mysore region would serve present and future interests equitably and not of any vested interest. With this in view, we have presented a detailed representation to the Chief Secretary of Karnataka (copy enclosed) providing extensive documentation of the gross abuse of power leading to dispossession of poor farmers and causing extraordinary loss to the State. The representation urges the Government to not miss this opportunity to correct past wrongs and take an unsparing step in punishing the guilty. In no uncertain terms, the government must back the CBI enquiry into the project, prayed for by the petitioners. Vijayaraghavan President Nagabhushan Vice President Bhooswadhina Virodhi Horata Vedike Nagaraj State Coordinator Dalit Sangarsh Samithi (S) Leo F. Saldanha Coordinator Environment Support Group Maj. Gen. S. G. Vombatkere (Retd.) Convenor National Alliance of People’s Movements (Karnataka) Chukki Nanjundaswamy General Secretary Karnataka Rajya Raitha Sangha and Green Brigade Address for contact: Environment Support Group ®, S-3, Rajashree Apartments, 18/57, 1st Main Road, S. R. K. Gardens, Jayanagar, Bannerghatta Road, Bangalore 560041. INDIA Telefax: 91-80-26341977/26531339/26534364 Fax: 91-80-51179912 Email: esg@esgindia.org or esg@bgl.vsnl.net.in Web: www.esgindia.org Bhooswadhina Virodhi Horata Vedike, 44/1A, Lakshmidevi Industrial Estate, Bannerghatta Road, Bangalore 560041 Tel: 91-80-26689544/26689844 Fax: 26782193 Email: sudin_offset@yahoo.co.in Shri. K. K. Mishra Chief Secretary & Chairman Empowered Committee on BMICP Government of Karnataka Reg.: Submission urging State to take a clear and unsparing stand w.r.t. massive excess land acquisition on BMIC Project, in view of interim directions of Hon’ble High Court in PIL No. 45386 of 2004 26 March 2005 Dear Shri. Mishra, The Bangalore Mysore Infrastructure Corridor Project was conceived to enable decongestion of Bangalore by developing appropriate transport and urban infrastructure in the Bangalore-Mysore region. The objective was to ensure planned development to shift the increasing population from Bangalore to other urban centres in the region. Broadly it was based on the theory of developing counter magnets, for which the Government of Karnataka had been looking for investors since the late 1980s. In 1995, the then Chief Minister of Karnataka, Shri. H. D. Devegowda, negotiated the development of Bangalore Mysore Infrastructure Corridor Project involving the development of a 4 lane (expandable to 6 lane) toll based Expressway between Bangalore and Mysore. As the toll would not help recover the capital and operating costs of the expressway, it was proposed that five self contained townships would be developed along the corridor, and the value recovered from sale of developments in the townships would cross subsidise the cost of the Expressway. MOU signed with Consortium for BMIC: This proposal was finalized in a MoU signed by Chief Minister Deve Gowda with Governor William Weld of Massachusetts, USA as part of a sister state agreement. This confirmed that a consortium involving Vanasse Hangen Brustlin (VHB, USA), SAB Engineering (SAB, USA), and Kalyani Group (India) would undertake the BMICP on a BOOT basis. A GO was passed on the basis of MOU on 20th November 1995 (No. PWD 32 CSR 95) authorizing acquisition of 18,313 acres of land for the development of an expressway (including peripheral road, link road and attendant facilities in and around Bangalore) and five townships between Bangalore and Mysore. This was based on recommendations of the High Level Committee and Project Technical Report submitted by the consortium, explicitly stating that Government land would be provided only on a lease of Rs. 10/acre, and never for sale. A copy of the GO is enclosed at Annexure 1 for your ready reference. At Annexure 2 we enclose for your reference a CD containing AV representation of the project, as submitted by project developer to Government on 26 August 1995. The same CD also details the present status, particularly the gross excess land acquisition upto 2005. Consortium to NICE, no proof that this was official transfer: The project which was taken up on the basis of the combined technical and financial capacities of the aforementioned consortium was allotted to M/s Nandi Infrastructure Corridor Enterprise (NICE), a company incorporated only in 1996, without including a key technical member, VHB. The Government of Karnataka has presently submitted to the Hon’ble High Court of Karnataka that this transfer from Consortium to NICE is illegal and thereby the Framework Agreement concluded between NICE and GOK is contested as void ab initio. The State has submitted that it was a victim of fraud and misrepresentation by NICE and it has relied on evidence produced by the petitioners before the Hon’ble Court that NICE did not bring to the attention of the Government the fact that VHB dropped out of the project by 1995 itself. In our submission below, we reconstruct how this project perceived to serve the wider public interest, has been hijacked by the project developer, M/s NICE, in collusion with various State officials and key decision makers, resulting in the biggest and most scandalous real estate scam in Karnataka. The impact in the immediate period is massive displacement of thousands of farmers most of who are directly dependent on land for their life and livelihoods. In the long term, this will lead to nullifying the very objective of enabling planned development of the Bangalore-Mysore region for what has effectively been done is to acquire land far in excess of actual requirement, especially expensive land around Bangalore, in total variance to the original technical project report and sanctioned plans. As a result, there is now the real possibility that this would lead to reckless development of the region, defeating the very purpose of planned development that was the original intention. The costs of pursuing on this course could be grievous, irreversible and disastrous not just to the present generation, but to the future generations as well as NICE would develop these lands for profit creating an unmanageable urban sprawl in and around Bangalore. Further, Bangalore would become NICE’s fiefdom! Gross abuse of power benefits NICE by massive scale of excess acquisition: In the table below, we detail how the Government of Karnataka (GOK), in particular Karnataka Industrial Area Development Board (KIADB) and Public Works Department (PWD), should have limited land acquisition to 18,313 acres, as per the original Technical Report submitted by the Consortium, but instead proceeded to notify 29,258 acres of land as of May 2004. TABLE 1: FACTS & FIGURES OF BMICP - NICE In Respect to DELIBERATE MISREPRESENTATION OF LAND ACQUISITION BY GOVERNMENT AND NICE TABLE - I Sl No. Description As Per Govt. Order for 5 Townships for cosortium (VHB + SAB + Kalyani) dt. 20.11.95 Lands claimed by NICE in Frame Work Agreement dt.03.04.97 Lands claimed by agreement between KIADB to NICE. dt. 14.10.98 Land notified by KIADB to NICE by DC, BMICP. Shri. Anees Siraj letter dt. 22.05.04 Toll Road Etc. ( A ) in Acres ( B ) In Acres (C ) In Acres (D ) In Acres 1. SERVICE AREA 236.25 --- 2. INTERCHANGES 1,186.06 --- 3. SERVICE ROAD 163.00 --- 4. LINK ROADS 147.66 278.00 5. LAND EXPRESSWAY 2,630.20 4,528.00 6. PERIPHERAL ROAD 756.20 2,193.00 TOTAL : 5,119.37 6,999.00 7 TOWNSHIP 1 2,776.00 2,776.00 8 TOWNSHIP 2 1,836.00 1,836.00 10 TOWNSHIP 4 1,615.00 1,615.00 11 TOWNSHIP 5 2,682.00 2,682.00 13 TOWNSHIP 7 4,285.00 4,285.00 TOTAL : 13,194.00 13,194.00 GRAND TOTAL : 18,313.37 20,193.00 23,846.00 29,258.00 OFFICERS RESPONSIBLE FOR EXCESS NOTIFICATIONS: A. Mr. C. R Ramesh, PWD Secretary, caused the first illegal increase on 03.04.1997 (B) - (A) = 20193-18313 = 1880 Acres B. Mr. Shankarlinge Gowda, IAS, CEO, KIADB caused the second illegal increase on 14.10.1998 (C) - (A) = 23846-18313 = 5533 Acres C. Mr. Aneez Siraj , Sp. D.C, KIADB further illegally increased on 22.05.2004 (D) - (A) = 29258-18313 = 10945 Acres Note: - There has never been any change in approved Right of Way of BMIC Expressway from the Year 1995 to 2005. Not a single Kilometer of the Expressway has been completed by nice till today. Yet land "required" for the project has continually been increasing from 18,313 acres to 29,258 acres over the decade. First Major Illegal Increase in Land On 22 November 1996, then PWD Secretary, Major C.R.Ramesh, perhaps acting on his own, and in total violation of the November GO and MOU, proceeded to allot 20,193 acres to NICE vide U/O order NO. PWD 155 CRM 95 (copy enclosed at Annexure 3. This despite a categorical confirmation by Bharat Forge on behalf of the Kalyani Group, one of the consortium members, in its letter to the Chief Minister dated 29 January 1996 (enclosed at Annexure 4), that the actual land required was 18,408 acres of land per the Project Technical Report and GO in this regard. Despite this, Maj. Ramesh proceeded to grant the project ceveloper 1,600 acres of excess land. This increase was illegally introduced into the currently contested Framework Agreement of the project and without the consent of the Government. This was done by merely introducing an unsigned Schedule 1 to the Agreement detailing out gross figures for the expressway and townships, totaling to 20,193 acres. Second Major Illegal Increase in Land: The next major illegal increase in quantum of land allotted took place on 14 October 1998, when Shri. Shankarlinge Gowda, IAS, then CEO, KIADB, entered into an agreement with NICE, by then considered the project developer for the consortium, providing a total of 23,846 acres of land by entering into an agreement. A copy of this is enclosed at Annexure 5. It must be noted that in the actual text of the agreement (page 3, para 3) the land allotted is shown as 21,000 acres, whereas the details annexed present a totally different picture. By this one action of Mr. Shankarlinge Gowda, the company gained total excess land of about 5,533 acres compared to the original GO of 20 Nov 1995. By now there was significant opposition to the project from across the region, with many organisations and villages raising strong protest against the notification of lands for BMICP, and even questioning its very need. Clearly in such a climate of criticism, even staunch opposition to the project, every officer should have been on guard and ensured compliance with the letter of the law, in the least. Despite such vehement and wide-scale protests, in addition to which many private and public interest litigations were initiated against the project, excess land acquisition continued unhindered in total disregard of all norms and rules. In fact, in W P No. 29221/1997 filed by Shri. Somashekar Reddy, former Chief Engineer of PWD questioning the need for the project, the affidavit for GOK was filed by Maj. C. R. Ramesh, who without consulting the Cabinet, staunchly defended the extent of land required, including the excess acquisition. This deliberate act on his part appears to have been conducted with no other motive but to mislead the Hon’ble Court and GOK with the oblique motive of benefiting NICE. Soon after, Maj. Ramesh joined NICE as Project Director. A copy of the affidavit submitted by Maj. Ramesh to the Hon’ble Court is enclosed at Annexure 6. As it seemed that the many efforts by concerned citizens and public interest groups had no bearing on the Government, as it was unwilling to correct the grave wrongs being committed, thousands of affected farmers appealed to Shri. H. D. Devegowda, former Prime Minister, seeking his intervention. Governor confirms massive excess acquisition on thorough enquiry: Shri. Gowda appealed to His Excellency the Governor of Karnataka, Shri. T. N. Chaturvedi, in several memoranda (dated 12 Feb 2004, 20 Feb 2004 and 01 April 2004, the final one being enclosed at Annexure 7) urging him to intervene appropriately, and particularly urging the Government to hand over the investigation of the scam to CBI. In response, Shri. Chaturvedi sought all documents pertaining to the project per his letter dated 3rd March 2004 (enclosed at Annexure 8). After a careful review, he established that excess acquisition had taken place and this was clearly to benefit NICE, the project developers. In his letter of 29 April 2004 to you (enclosed at Annexure 9) as Chief Secretary and Chairman of the Empowered Committee on BMICP, Shri. Chaturvedi has analysed this excess acquisition thoroughly, and brought this to your attention as follows: 1. Overall about 30% of private land is notified in excess of actual requirement. That is 20,825 acres of private land was notified when what was actually required is about 15,000 acres. This constitutes an excess of 5,702 acres of private land alone for the overall project. 2. In specific relating to the toll based expressway, the total acquisition is 6,999 acres, when only 5120 acres was required. This constitutes an excess of 1,879 acres or 37%. 3. With regard to the interchanges (totally 16, including 8 around Bangalore), 3065 acres has been acquired, against the actual requirement of 1186 acres. This constitutes an excess acquisition of 1878 acres or 158%. 4. It is also observed that about 4970 acres of government land has already been leased out to NICE, who in turn have used it as “security for securing loan from the financial institutions”. Keeping the above in view, His Excellency had strongly advised you to take “appropriate action”. Yet, it is a matter of great concern to all, that no action has followed. This non-action on the part of the State has been repeatedly pointed out and questioned by the Hon’ble High Court in the ongoing proceedings in the PIL. As you are aware, this is not the first time the matter of massive excess illegal acquisition has been brought to the Government’s notice. Now absolute proof of this is being provided, and it is but logical that we expect the Government to take strong action in this regard. The question needs to be raised, however, in light of all this evidence, if there is any authority at all which can make this Government to take the right action? This considering that even observations of the First Citizen of the State and a former Prime Minister have been disregarded without effective follow up action. Such lackadaisical approach undermines the very purpose of constitutional guarantees protecting life and livelihood, especially of the poor and defenseless and providing for planned and egalitarian development. Scandalous revelations of Shri. Anees Siraj, Spl. DC KIADB – BMICP: In a shocking revelation, Mr. Anees Siraj, Spl. Deputy Commissioner of KIADB - BMICP, in his letter dated 22 May 2004, confirms that 29, 258 acres of land has been notified for the project, an excess of about 10,945 acres! He further confesses, startlingly, as follows: “Land Acquisition notifications were issued based on the requirement indicated by the promoter company and not on the basis of any technical drawings/maps as approved by the Government in PWD or the project report”. In the same letter, which is enclosed at Annexure 10), he clarifies the extraordinary extent to which NICE has played a role in acquiring land, for he states: “(d)enotification of 2728 acres was issued (vide Gazette dated: 11-2-2004) relating to lands indicated by the company as not required” We demand to know who is in charge here. Has the Government abandoned its Eminent Domain responsibilities in favour of NICE? Can lands be notified and de-notified on the whimsical reasoning of a private enterprise, that too in thousands of acres? Is there any consideration of the wide extent to which this is causing irreparable damage to thousands of families? When officers openly confirm that gross violations have taken place, as reported by Mr. Siraj above, isn’t there any mechanism that should kick in to correct the process? Or is this an indication of the extent to which governance has failed? In particular we wish to know what, if anything, is the action you have initiated as Chief Secretary of the State, particularly in your capacity as Chairman of the Empowered Committee on BMICP. The implications of such a scale of abuse of power are too damaging to be simply brushed aside. Convincing answers must be provided forthwith so public confidence is restored in the government. K. C. Reddy Technical Expert Committee further confirms scandalous nature of excess acquisition: Many of these issues were raised in a heated debate in the Karnataka Assembly during July 2004 initiated by Shri. Madhuswamy (JD-U), Shri. Sriram Reddy (CPI-M), Shri. Jayaprakash Hegde (Independent), Shri. Vatal Nagaraj (Kannada Paksha), Shri. Ashok (BJP) and others. The intensity of the debate was such that it continued into the late hours of the night, and the State was caught unprepared many a time. In a brief but unconvincing reply, the Chief Minister agreed to constitute an Expert Committee to review the matter, which was later confirmed to be headed by Padmashri awardee Shri. K. C. Reddy. The committed submitted its interim findings in December 2004 providing detail of the lands that should have been acquired for Phase A of the project, i.e. Peripheral Road, Link Road, Interchanges and the Bidadi township. In particular regard to land acquisition around Bangalore it pointed out that an excess acquisition of 2,450 acres of land has taken place. An extract of a table from the report detailing this fact is enclosed at Annexure 11. Clearly, NICE would commercially exploit these highly expensive lands to their own profit. Even if we assume a nominal commercial value per current rates as Rs. 1000/sft, then the excess 2,450 acres handed over to NICE amounts to handing over a largesse of Rs. 10,000 crores! To this should be added the benefits accrued by NICE on account of various tax and cess exemptions, and the advantages gained in possession of lands perpetually. These profits are not one time, but astonishingly large and recurring. This begs the question if Karnataka’s latest economic policy about promoting reckless and irresponsible capitalists? In this context, it is no surprise that NICE threatens ever so often that it would drag the matter into international arbitration, if Karnataka abrogates the Framework Agreement. NICE and its official and political backers have too much to gain, nothing to lose and would very much wish the story continue as they have scripted it thus far. Such fraud has never before been perpetuated on governance systems and the public at large, especially with regard to precious land resources supporting thousands of livelihoods. What NICE is doing with the BMICP is thus a scandal of unimaginable proportions, despite repeated and extensive exposures by the media and public interest groups and individuals. NICE blatantly trading lands meant for BMIC Project: As you are aware, lands acquired for the BMIC project were sold by NICE to Indian Machine Tools Manufacturers Association (IMTMA) in gross violation of land use planning rules, land acquisition norms, the MOU and agreements. This matter is being adjudicated by the Hon’ble Court. An easily appreciable point about this matter is that NICE had no business to trade with land anywhere but in the designated townships. The first township allowed is at Bidadi and the company can only develop lands acquired around Bangalore for the specific purpose of Peripheral Road, Link Road and attendant facilities, none of which includes urban commercial development. Thereby, the sale of land to IMTMA presents a picture of abundant arrogance in misuse of power, where, lands painfully parted by hundreds of farmers, only partially compensated in violation of the MOU and GO, is being traded with impunity and disregard for all laws and norms. Many of the government officers and agencies who should have checked this fraud, remained silent and/or complicit, and have thus joined NICE in this massive land scam fuelling the very failure of the machinery of governance. A point to be noted here is that in the acquisition of 30 acres of land which NICE sold to IMTMA, there has never been any agreement between KIADB and NICE to transfer these lands for the BMIC Project. Yet KIADB proceeded to sell these lands to NICE, especially 22 acres of land in Madanayakanahalli, in clear violation of land registration and acquisition norms. Enclosed please find the sale deed copy between KIADB and NICE in this regard, at Annexure 12. Shockingly, the GO approving of the sale was issued only on 18 September 2003, several months after the registration of the sale deed on 28 June 2003, when government norms demands exactly the opposite! It questionably feigns ignorance of the sale, by suggesting “IMTA should identify the land to be acquired by them and intimate the details such as survey number, name of the village and extent of the land to the revenue department. Revenue Department would thereafter, issue a separate government order in this regard.” A copy of this GO No. IDD 219 IDM 2003, dated 18 September 2003, is enclosed at Annexure 13. Further, this transfer took place when three affected farmers have never consented to the acquisition and sale of their lands. Their protests have been muffled, recently, by extending police protection to NICE to forcibly take over the land, this when the matter is pending adjudication by the Hon’ble High Court of Karnataka. There cannot be a more clear indication of the manner in which land trading on a massive scale is taking place clearly benefiting NICE, with protection accorded by none else by the State of Karnataka. This is not the only instance where NICE has traded lands, for one other case is its proposal to LIC Housing offering to sell lands within Bangalore city limits at commercial rates. As is to be expected, this once more in blatant violation of the MOU and GO supporting BMICP! A copy of this letter is enclosed at Annexure 14. Encouraged by the government’s silence on NICE’s blatant disregard to laws and norms, many others are continuing on this path. Recently advertisements have been issued in newspapers where lands already notified for acquisition favouring BMICP, are being proposed for sale by private parties. An instance of this is the proposed sale of land in Pantarpalya, Bangalore South Taluk, and a copy of the public notice issued in this regard is enclosed at Annexure 15. The continuing lack of action by the State against NICE is thus encouraging droves to violate the law with impunity, Need to review the role of Shri. B. S. Patil, Former Chief Secretary and Shri. R. V. Deshpanded, formerly Minister for Industries and Commerce, amongst others: In this context the dubious role played by Shri. B. S. Patil, former Chief Secretary of Karnataka, in promoting this project, needs thorough examination. As CMD of KSIIDC, Shri. Patil had written on 30 December 1994 (copy enclosed at Annexure 16) to then Secretary PWD, Maj. C. R. Ramesh, highlighting the importance of pursuing the Bangalore Mysore Expressway. This was in view of the letter received from L & T confirming its interest to build the project based on its vast technical and financial capacities (copy enclosed at Annexure 17). While such an important infrastructure development was supported by a company with demonstrated capacity in building such massive infrastructure, in no time this discussion was abandoned to support a consortium, which eventually became NICE. This without any careful review of the NICE’s technical and financial capacities. In all decisions connected with the MOU and initial GO processes, and in regard to decisions connected with NICE becoming the project developer instead of the consortium, and also in detailing the Framework Agreement, Shri. Patil was consistently involved as a special invitee, along with Maj. Ramesh, regardless of the position they held in government. Very soon, Shri. Patil became the Chairman of the Empowered Committee for BMIC, particularly during the crucial period when most decisions relating to acquisition of lands were taken. And Maj. Ramesh soon after retiring from the Government, joined NICE as Project Director, reflecting a serious breach of conduct and ethics in holding public office. With the evidence now before us, these two gentlemen repeatedly appear as key players in piloting the entire exercise relating to acquisition of lands and seeking clearances for BMICP. In that sense, they must be held directly accountable for the massive fraud perpetuated against the affected farmers, and gross abuse of power and systemic corruption that was engaged in supporting NICE over the wider public interest. Their role along with that of other officers such Shri. Shankarlinge Gowda, Shri. Basavaraj (Project Coordinator - BMIC), Shri. Anees Siraj (Spl. DC - Land Acquisition - BMICP) and many others must be thoroughly investigated. Such arrogant abuse of power would not have been possible without political concurrence, particularly of Minister of Public Works, which in the corresponding period was held by none other than the present Chief Minister Shri. Dharam Singh. and Shri. R. V. Deshpande, then Minister for Large and Medium Industries, who was in charge of land acquisition for BMICP. Considering the above, the late repentance of Shri. Deshpande in expressing surprise over the excess acquisition, per his letter dated 20 November 2003 (enclosed at Annexure 18), must be viewed with suspicion. The Present Scenario: As the Hon’ble High Court has not granted a stay on BMIC activities by NICE, the company is presently engaged in hectic activity for the development of the Peripheral Road. It has also aggressively taken possession of lands, especially, as pointed before, in Madhavara and Madanayakanahalli. When the Court has clearly instructed status quo must be maintained, which in essence requires NICE to only engage in road construction, the fact that police protection is being extended to it to hoard lands, described in the Reddy report as part of the excess acquisition, is a highly questionable act demonstrating disrespect for the honour due to the Hon’ble Court. In addition, the company has blatantly violated many clearance conditions, especially with regard to environmental clearances and compensation. On environmental grounds, there is little or no compliance of the many conditions imposed by the Ministry of Environment and Forests. NICE has only been encouraged to behave in this manner because of the total failure of state and central agencies to even monitor such violations despite repeated demands. The Forest Department has highlighted repeatedly that NICE is not respecting its various orders regarding the use of forest lands, particularly in view of the various directions by the Central Empowered Committee constituted by the Hon’ble Supreme Court pursuant to the Godavarman judgement. There are too many such details and we will soon draw your attention to these in a separate representation. However, it is important to highlight this now, so you may initiate appropriate action with due dispatch. Urgency of action assumes great importance particularly in regard to compensation, as land losers are only being provided monetary compensation. No job, or housing or shifting costs are being provided as required by the MOU. Without doubt, NICE must be held responsible for all such violations, and immediately forced to compensate the affected parties generously. Our appeal: Keeping the above in view, it is time the State Government took a clear and unsparing stand on the matter. Even the Hon’ble High Court desires the same from the State, as indicated in its interim direction. To guide the State in taking a stand, we present the following values: 1. Past wrongs must be corrected, and those responsible punished. 2. The project development must be comprehensively reviewed for its viability, as NICE has proved to be a company not worthy of public trust. Thus all that it has claimed in the past as being project deliverables in the wider public interest, should not be taken at face value. By way of this representation, which is being marked to the attention of all concerned, we urge you to present the following as the State Government’s stand to the Hon’ble High Court of Karnataka: 1. The K. C. Reddy Committee report, that has already been accepted by the Government, must form the basis of determining the return of all excess lands that have been wrongly acquired to its original owners, with due compensation from NICE for the acute distress caused. 2. GOK must comprehensively reject the Framework Agreement, on grounds that NICE misrepresented its credentials, and thereby the Agreement is void ab initio. Further, the current stand of the State in the Court that it was never a party to the agreement must be forcefully reiterated. It must be highlighted that when earlier it defended the Agreement in WP No 29221/1997, this was based on an affidavit filed by Maj. C. R. Ramesh, then PWD Secretary, who submitted the State’s position in absolute violation of the original GO dated 20 Nov 1995. 3. In light of the above, it logically follows that criminal investigation must be initiated against all those who have colluded to benefit NICE and thus defeat the public purpose. The Hon’ble Court has repeatedly articulated the view that the State is fully capable of addressing all dimensions of this controversy on its own, but has failed to do so. It is now required of the State to demonstrate its sincerity in comprehensively addressing the complications that have arisen by getting to the bottom of the matter. There is no better way of doing this, than to fully back a CBI enquiry into the matter, as prayed for in the pending PIL No. 45386/2004. Only such an enquiry will be acceptable to the public, as too many agencies and officers of the state have colluded in this scam, and could continue to deter the truth from being reported. 4. Pending the adjudication of this matter, and given the gross violations of various work conditions by NICE, the Government should immediately give direction to requisite agencies to comprehensively review violations within a fortnight and initiate appropriate action as required. As the Hon’ble High Court has not provided any interim relief of stay as prayed for in the PIL, or constrained the Government in any manner, it is at liberty to take such action. 5. Even as all this is underway, the fact remains that the public at large requires effective transport in the Bangalore Mysore region, a matter of great importance that has been grossly neglected due to the State’s narrow focus only on the BMICP. As the widening of SH 17 (Mysore Road) to 4 lanes is nearing completion, at marginal land acquisition and cost, and NH 309 (Kanakapura Road) expansion has been taken up recently, the need for the toll based Expressway is in question. If the railway corridor between Bangalore and Mysore is doubled, and frequency and speed of trains increased (tracks are designed for 140 kmph – which means the distance can potentially be covered in an hour non-stop), existing towns and cities could easily absorb the growing population, thereby negating the very need for townships as proposed in BMICP. The BMICP townships, in any case, are designed to serve the interests of the super rich, and thus would fail in decongesting Bangalore, as the population of the metropolis is predominantly middle class or poor. In that sense, the entire transport corridor, including the Peripheral Road around Bangalore can be creatively developed by state agencies, without surrendering to the whims and fancies of NICE. These possibilities can be immediately reviewed by GOK in a very transparent and public manner, so that the long term interest of the state is not jeopardised under any circumstances. The opportunity that now exists for the State to correct past wrongs is but rare. It is a time when the State should clearly articulate its vision of development with wise and transparent choices serving clearly the interests of the wide public in an egalitarian manner. Keeping this in view, we urge to file your affidavit before the Hon’ble High Court confirming your willingness to take all steps necessary to correct past wrongs, including what we have proposed above. Thank you for your cooperation and support. Yours sincerely, Vijayaraghavan President Nagabhushan Vice President Bhooswadhina Virodhi Horata Vedike Nagaraj State Coordinator Dalit Sangarsh Samithi (S) Leo F. Saldanha Coordinator Environment Support Group Maj. Gen. S. G. Vombatkere (Retd.) Convenor National Alliance of People’s Movements (Karnataka) Chukki Nanjundaswamy General Secretary Karnataka Rajya Raitha Sangha and Green Brigade Encl. As above Address for contact: Environment Support Group ® S-3, Rajashree Apartments, 18/57, 1st Main Road, S. R. K. Gardens, Jayanagar, Bannerghatta Road, Bangalore 560041. INDIA Telefax: 91-80-26341977/26531339/26534364 Fax: 91-80-51179912 Email: esg@esgindia.org or esg@bgl.vsnl.net.in Web: www.esgindia.org Bhooswadhina Virodhi Horata Vedike 44/1A, Lakshmidevi Industrial Estate, Bannerghatta Road, Bangalore 560041 Tel: 91-80-26689544/26689844 Fax: 26782193 Email: sudin_offset@yahoo.co.in Cc.: 1. His Excellency the President of India, Dr. Adbul Kalam 2. Shri. Manmohan Singh, Prime Minister of India 3. His Excellency the Governor of Karnataka, Shri T. N. Chaturvedi 4. Shri. H. D. Devegowda, former Prime Minister of India and Member of Parliament 5. Smt. Sonia Gandhi, Leader of Congress in the Parliament and Chairperson, United Progressive Alliance 6. Shri. L. K. Advani, Leader of Opposition, Lok Sabha 7. Dr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission of India 8. Shri. Dharam Singh, Chief Minister of Karnataka 9. All Cabinet Ministers of the Government of Karnataka 10. Members of Parliament from Karnataka 11. Justice Venkatachala, Lokayukta, Karnataka 12. Members of the Karnataka Legislative Assembly and Council 13. Shri. Chidambaram, Union Minister for Finance 14. Shri. A. Raja, Union Minister for Environment and Forests 15. Shri. T. R. Baalu, Union Minister for Surface Transport 16. Secretary, Ministry of Environment and Forests, Govt. of India 17. Secretary, Ministry of Road Transport and Highways, Govt. of India 18. Secretary, Ministry of Finance, Govt. of India 19. Secretary, Department of Company Affairs, Govt. of India 20. Secretary, Ministry of Urban Development, Govt. of India 21. Chairman, Foreign Investment Promotion Board, New Delhi 22. Jt. Secretary (IA), Ministry of Environment and Forests, Govt. of India 23. Chief Conservator of Forests (Southern Cell), Ministry of Environment and Forests, Government of India 24. Principal Secretary, Public Works Department, Government of Karnataka 25. Principal Secretary, Dept. of Commerce and Industries, Government of Karnataka 26. Principal Secretary, Dept of Infrastructure, Government of Karnataka 27. Principal Secretary, Dept. of Finance, Government of Karnataka 28. Principal Secretary, Dept of Urban Development, Government of Karnataka 29. Principal Secretary, Dept. of Ecology, Environment and Forests, Government of Karnataka 30. Principal Chief Conservator of Forests, Karnataka State Forest Department 31. Chairman, Karnataka State Pollution Control Board 32. CEO, Karnataka Industrial Area Development Board 33. Chairman, Bangalore Water Supply and Sewerage Board 34. Commissioner, Bangalore Development Authority 35. Commissioner, Bangalore Metropolitan Regional Development Authority 36. The Media and the public at large