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Why has the law not caught Kavlekar?

GIDC’s former big Babu’s, illegalities have been exposed by the High Court, the CAG and The Goans own investigations. - An FIR filed in 2007 against Kavlekar and others for fraudulent allotment of land to companies in proposed SEZ’s, has not been registered till now. Kavlekar blames then CM Pratap Singh Rane and Luizinho Faleiro for dictating allotments

Why has the law not caught Kavlekar?

This man has not been a minister. But he held sway over Goas IndustrialDevelopment Corporation, presiding over the loot of Goas exchequer, byfraudulent allotment of huge plots to mega companies to set up SEZ’s. The Highcourt has explicitly said they were done “in a manner not known to law”. The Goagovernment was forced to scrap the SEZ allotments and then withdraw the SEZpolicy. But three years later not a finger has been raised againstBabu Kavlekar, other satraps like the then Industries minister Luizinho Faleiroand the then Chief Minister Pratap Singh Rane. The High Court, the CAG and ourfurther investigations show how the state first surreptitiously created groundconditions to benefit pre-selected developers and then crushed all rules toallot them land at manipulative prices.

This is the nerve center of the scam. While the violations and bendingof rules will run into pages, Goa should know how it lost because of theseviolations.  This is how :

a) Lease rates for the SEZ area fixed lower than adjoining areas whenit should have been higher.

b) Additional land was subsequently given for further developmentwithout approval of the board

c) Land, ostensibly given forindustrial development, was actually meant for real estate development. (Seebox: How Goa lost)

If the scam is big enough for the government to withdraw its entirepolicy, why are those who clearly scripted, directed and allegedly benefitedfrom the scam free?Kavlekar as Chairman, allowed violations after violationsdetailed later, with his Managing Director’s son-in-law on the board of one ofthe companies given land.Pratap Singh Rane finds himself defending four wordsthat he wrote on a file “Please help these people” (on an application of one ofthe companies). But The Goan hasfound that he went a step further. He laid the foundation stone of theRaheja’s Mindspace “SEZ”, where he said that Goa should open its doors to exportoriented projects. In the same function, the Rahejas distributed a brochure oftheir project proudly claiming that it was a housing project spread across 275acres. Is this what the sentence “please help these people” meant?

 An FIR filed on October 22, 2006, against Kavlekar, Faleiro and othershas not been registered till now. While ministers in other parts of India resignwhen there is a court indictment, Faleiro, Kalvlekar and even Rane remaineduntouched.

 The High Court in a lengthy judgment and the CAG in its report havemade some of the most serious charges against the government ever. The courtruled that the allotment of lands to the companies were “illegal” (page 183 ofthe judgment). It also specified the bottom line of the fraud “Proceduresadopted in the allotment is not fair and transparent and do not stand the testof reasonableness” (page 192)

 The inside story of how the IDC went overboard to help SEZ companies,begs a question. Isn’t this exactly what A Raja did as Telecom Minister?-givefavours and advance information to select companies to whom 2G spectrumlicenses would be given. This is how Kavlekar did it.

 a)The land, finally allotted for SEZ’s wasavailable with the IDC from 2004. On March 31, 2006- after two years of theland lying vacant- the government marked plots in open spaces. Just 12 dayslater (April 12), four companies applied for land for SEZ’s on the same day andalmost at the same-time, with identical handwritten applications, in the samehandwriting. The applications had no company seal and the signatories in twoapplications did not write their full name or designations. One of the leadingapplicants K Raheja, applied for specific individual plot numbers. Were they toldof the plot details, marked merely 12 days ago. Land for these SEZ’s wereallotted (March-April 2006) even before the state notified its SEZ policy inJune 2006.

 b) Major financial decisions regarding land rates were taken at the boardmeeting of April 19, 2006 with directors getting notices only on April 17. Theagenda for the meeting issued on April 18, was received after the meeting onApril 19. Land was allotted to four companies on this day without the mandatoryquorum of directors.

 c)Two companies Planet View Mercantile Company Private Limited (for a gemand jewelry park, Verna)  and Peninsula Pharma Research Center PrivateLimited(Bio Tech park, Sancoale) were not  even registered at the time ofallotment.((April 19 and March 2006 respectively) 

d) Non-processing areas earmarked for SEZ’s were meant for commercialspaces, shopping malls, multiplexes and residential complexes. Industrial landcould not have been allotted for such purposes.

 e) In a clear conflict of interest, the additional lease agreement ofINOX Mercantile and Planet View Mercantile was signed by an “authorizedrepresentative” Amish Yodha in the presence of “witness” Alpa Palekar, thedaughter of MP GIDC Anil Palekar. A few months later Alpa married Amish. 

Just because the government has withdrawn its SEZ policy and scrappedthe SEZ’s, is it good enough? If the wrong doing has been arrested, shouldn’tthe wrong doers be arrested too? Normally those in government who willinglymake losses to the exchequer face trial and go to jail. Why not here?

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A JICA-ntic Scam

The PWD is camouflaging revenues from the falling yen, as cost overruns. This added to actual overruns has added costs by 100%

Ajay Thakur I The Goan
Published Jul 27, 2012, 9:35 AM IST
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The Churchill Alemao led PWD department ofthe Congress government took escalation to the level of a fine art but hissuccessor, Sudin Dhavlikar of the BJP is trying very hard to match them. Documentsrelating to the high value JICA (Japan International Cooperation agency) watersupply and sewerage project now in possession of The Goan, reveal two potential high value scams. Firstly,the total cost of 19 components of the project hadincreased from Rs 709 crores (after conversion)…

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