Govt: No realty projects on NICE stretch

The Karnataka government has decided not to allow “real estate development” by the promoter of Bangalore-Mysore Infrastructure Corridor project near interchanges, contending that the developments are against the project’s Frame Work Agreement. 

The government has conveyed its stand to the Supreme Court through an affidavit filed in April this year. Neither Chief Minister Siddaramaiah nor Public Works Minister H C Mahadevappa have reacted to the issue.

 A study by the Institute of Social and Economic Change (ISEC) early this year had revealed that the promoter, Nandi Infrastructure Corridor Enterprise (NICE), had done transactions on 756 acres of land worth about Rs 7,077 crore meant for the project near Bengaluru. 

The affidavit, a copy of which is available with DH, was filed in response to a priority-wise proposal submitted by the promoter to the SC. 

The promoter has been claiming rights to develop and sell lands near interchanges – approximately 4,931 acres. A major portion of these lands is in possession of the promoter, and it has already done transactions with real estate developers and individuals, including that of sale transaction, according to the ISEC report.

“...The government’s stand vis-a-vis clearances sought for by the contempt petitioner for real estate developments at the interchanges is that it is not a permissible activity under the Frame Work Agreement (FWA).

The contempt petitioner has entered into several Joint Development Agreements and Agreements for Sale for real estate developments at the interchanges with respect to which clearances have not yet been obtained. These agreements have the effect of creating irrevocable third party interests in transferred assets so as to denude the reversionary interests of the state government of any real content,” the affidavit filed by Additional Chief Secretary to PWD M R Kamble stated. 

Further, the government has said that though it has accepted the assignment and development agreement between the promoter and the Nandi Economic Corridor Enterprise Ltd (NECEL), it should not be construed as amendment to the FWA. 

Besides, it has pointed out that the assignment and development agreement violates an undertaking giving by the promoter to the Karnataka High Court on development of townships in the Somashekar Reddy case. 

The promoter had stated in the undertaking that it will develop townships after the construction of peripheral road, link road and expressway, the government added.

Efforts by the government and the promoter to resolve all issues, including the right to develop the land, and resume the BMIC project work by holding negotiations, have failed. 

An advocate representing the promoter in one of the negotiation meetings recently has indicated that his client will not be interested in the project if the government does not permit development and sale of lands. 

No to NICE real estate

Govt decided not to allow real estate development by NICE at interchanges.

Govt has disclosed its stand in a affidavit filed before the SC.

It has contended that real estate development by the promoter is against FWA.