RIICO case: Court to pronounce verdict on July 24

JAIPUR: Metropolitan magistrate-11, Jaipur, on Monday, heard argument in a case lodged against senior IAS officer, Sunil Arora and others. Complainant has alleged that Arora, as chairman of Rajasthan State Industrial Development & Investment Corporation Limited (RIICO) with others, had allotted industrial plots to several individuals on cheaper rates, causing losses to the tune of over Rs 3,000 crore to the state exchequer.At present, Arora is on deputation at Centre as secretary, skill development.
Magistrate Renu Sakit, who heard the case, has fixed July 24 to pronounce order in the case.
RTI activist, Sanjay Garg had lodged complaint against former RIICO officials, including Arora on July 15. Others accused in the case are: Purushottam Agarwal (former commissioner, investments), Rajendra Bhanawat (former MD, RIICO), Rajhans Upadhyay (former commissioner, industries), Chetan Deoda, Urmila Rajoria, Ram Pratap Visnoi and Ravidatt Gaud. Case against them has been registered under various Sections of the IPC for criminal conspiracy, causing losses to the state. Arora was RIICO chairman for almost five years.
"We sought court intervention for inquiry against the officials for conspiring against the state," said Sunil Vashishtha, counsel for RTI activist Garg. He said that they had lodged a complaint against the above officials with the Jaipur Commissioner office but no action followed. "Losses caused to the state could be more than Rs 3000 crore as per the current market rates," says Garg.
The case relates to misuse of preferential allotment norms by keeping land rates unchanged in the industrial clusters for five years. "The RIICO land disposal rule 1979 was changed and rule 3 (W) was added after which 118 industrialists were allotted over 34 lakh square metre land causing losses worth over Rs 1,500 crore to the state. These allotments were done mostly after the rule was changed in 2010. As per current market rates, losses have gone up to over Rs 3,000 crore," Garg added.
Just before assembly polls in 2013, land at Vishwakarma Industrial Area (VKI) -Extension was given at throw-away prices of Rs 1,800 per sq meter, when the prevailing market rates ranged between Rs 25,000 and Rs 30,000 per sq meter. VKI is the oldest zone in Rajasthan established in 1970 to promote economic activities. The allotments were made at the same time when the applicants for the Apparel Park at Jagatpura paid Rs 4,700 per sq metre against Rs 500 as per the RIICO's original advertisement.
Complaints have alleged that out of the 118 allotments (813 acre) made under 3(W) scheme at heavily subsidized rates, 44 allottees have failed to start production within the scheduled time, while 40 of them have not started any construction.
The 3(W) scheme was launched in 2007 to encourage NRI/FDI investment and local entities were also allowed to apply. Generally, RIICO auctions its land for allotments, but in this case it was made preferential. However, out of the 118, only 16 land allotments have been made to NRI/FDI category of investors, raising the question why the 3(W) provision is still being continued even though with recent changes.
TOI had reported on May 8, 2014 that RIICO lost more than Rs 1,000 crore in the 3(W) scheme as the preferential allotment norms were misused while keeping land rates unchanged. However, complainants have valued the loss to the tune of Rs 3000 crore.
Even Comptroller and Accounts General (CAG of India, in its report in May this year, had found "systemic lapses" in the preferential allotment of land to enterprises by RIICO under its 3(W) scheme. It said the process of land allotment violated established procedures, overlooked appraisal of proposals and ignored various shortcomings pointed out by designated departments.
The CAG cited the example of Rdevis Engineers Pvt Ltd whose proposal on June 5, 2012 for land allotment was rejected even though the company submitted additional required information on July 30, 2012. It said the proposal of another company named Badve Engineers Ltd was accepted on July 10, 2012 and the application was cleared for land allotment on the very next day by the chairman of RIICO without any appraisal by designated cells.