October 22, 2007

PRESS RELEASE

A Memorandum was handed over to the Chief Minister today by the PEOPLE'S MOVEMENT AGAINST SEZS, an initiative of the citizens of Goa, lodging a strong protest against the imposition and implementation of the SEZ policy in Goa.

Every elected Government is expected to safeguard and protect the collective assets as also the interests and identity of the community it professes to serve. If the Government itself adopts policies that amount to a virtual sell out of the family jewels, then it is time for the people to organise themselves and stand together unitedly to safeguard the land of their forefathers and protect the interests of future generations.

WHY CITIZENS OF GOA FELT COMPELLED TO LODGE AN FIR AGAINST THE GIDC BOARD

Despite a political party having threatened to file an FIR against the GIDC Board for the alleged irregularities and illegalities committed by it in allotting land for five SEZs in Phase IV of the Verna Industrial Estate, the citizens of Goa, under the banner of PEOPLE'S MOVEMENT AGAINST SEZS, felt it necessary to pre empt any prospect of this life and death issue for Goa to be used politically and to retain the initiative with the ordinary citizens who have no motives other than love and concern for their motherland.

The allocation of land for five SEZs in the Verna Industrial Estate, namely K. Raheja Corporation Pvt. Ltd., Paradigm Logistic & Distribution Pvt. Ltd., Inox Mercantile Pvt. Ltd. , Planet View Mercantile Company Pvt. Ltd. and Maxgrow Finlease Pvt. Ltd. has been characterised throughout by adhocism and flouting of the rules and regulations as follows :

1. Even though the allotment of the land is for Special Economic Zones, none of the Provisions of the Special Economic Zone Act 2005, more particularly Sections 3, 4 and 5 thereof, have been followed and therefore the whole allotment gets nullified on this ground.

2. At least three of the five Companies to whom SEZs have been allotted are new Companies without any experience at all and K. Raheja Corporation Pvt. Ltd. is purely a real estate developer. Therefore, it appears that these Companies have specifically been floated for the purpose of grabbing this land under the guise of SEZ.

3. Four Applications, which do not bear any inward stamp and number nor the seal of the respective Companies are all dated 12th April, 2006, and the land allotment has been approved within six days thereof, without the Companies even submitting the mandatory Project Reports.

4. The Meeting of the Board held on 19/04/2006 gave a complete go-by to the Provisions of the Goa, Daman and Diu Industrial Development Act, 1965. Under Regulation 2, it is a mandatory requirement that the Secretary shall give seven days clear notice of the ensuing Meeting to the Members of the Corporation. Under Regulation 3, the Secretary is required to furnish each Member with the Agenda and the item notes regarding the business included in the Agenda. The Notice is required to be despatched to the Members by ordinary post under Certificate of Posting and a Notice is required to be despatched along with its Annexures. In the instant case, even assuming that the Application is inwarded on 12th April, 2006, the same could not have been discussed in the Meeting held on 19/04/2006 as the seven days clear notice as required under the Regulations could not have been followed; therefore on the face of this, the allotment in favour of the four Companies appears to be illegal and in violation of Law . 5. The said land was not acquired for the Special Economic Zone nor has the same been declared as Special Economic Zone area and no Resolution has been passed by the Board to change the purpose of acquisition; while the land was originally acquired solely for industrial purposes it has now been allotted for SEZ which will have a land use incorporating industrial, commercial as well as residential.

6. The said allotments of land to four companies, (excluding land allotted in the form of internal roads and open spaces) have been passed in the Meeting which was attended by only four Members, namely Chandrakant Kavlekar, Chairman, GIDC Board & MLA, Aleixo Sequeira, Director, GIDC Board & MLA, (presently Power Minister), Nitin Kunkolienkar, Director, GIDC Board & President, GCCI, A. V. Palekar, Managing Director, GIDC, without following the due procedure of Law. The said allotment of land had not previously been approved by the Government before being discussed at the Board Meeting held on 19/04/2006.

7. In the Meeting of the Board held on 07/02/2006; the rates in all the Industrial Estates were enhanced including Verna Phase I, IA, II and III, of the Verna Industrial Estate. But in Phase IV of the Verna Industrial Estate which is a new acquisition and where the rates of acquisition were also high, the rates have not been enhanced by the Board possibly to allot the land to the applicant companies at a lesser rate and thereby cause loss to the Public Exchequer and Public & Government Revenue.

8. The area allotted to M/s Inox Mercantile Company Pvt. Ltd., is 5,52,089 square meters which is far in excess of that which was applied for by them i.e., 4,84,832 square metres. While the Board resolution still stands at 5,52,089 square metres, the Deed of Lease bears the allotted figure as 4,84,832 square metres.

9. M/s Planet View Mercantile Co. Pvt. Ltd., was neither incorporated on the day of the application nor on the day of the approval by the Board on 19/04/2006. The said Company was in fact, incorporated only on 26/04/2007.


10. M/s Paradigm Logistics & Distribution Pvt. Ltd; had in fact, paid an amount of Rs.3,17,30,228/- vide Receipt No. PNJ-51 dated 17/04/2006 towards the allotment of land, even prior to the approval of the Board Meeting dated 19/04/2006. This smacks of a complete fraud being played on Public Revenue and people of Goa by Government Officials in connivance with these Companies.

11. A letter dated April 12/13, 2006, bearing No.GOA-IDC/BM-287/8325 was circulated to the Members only on April 17, 2006, including the Minister for Industries stating that the Meeting would be held on 19/04/2006, and that the Agenda would be circulated shortly.In fact, the Agenda was circulated only on 19-04-2006 as the acknowledgements reveal. It is pertinent to note that the Director of Industries acknowledge receipt of the Agenda at 5.20 p.m. on 19-04-2006 and the Chief Electrical Engineer, who is also part of the Board, received the intimation of the Agenda at 5.15 p.m. on the 19-04-2006, when in fact the Meeting was convened at 4.00 p.m. on that day itself.

12. Under Regulation 6 (a) regarding the Regulations for determining the time and place for the Meetings of the Corporation, the procedure which has to be followed in regard to transaction of business at such meetings framed in pursuance to Section 51(i)(a) of Goa Daman & Diu Industrial Development Act, 1965, is that in order to form a quorum, at least one of the Members nominated under section 4(1)(d) of Goa Daman & Diu Industrial Development Act, 1965, is required to be present. In the instant case, the said person not being present at the Meeting held on 19/04/2006, there was no quorum in the eyes of law and therefore all decisions taken in the said Meeting are null and void.


13. In the 295th Board Meeting of the IDC held on 09/03/2007, as regards the adoption of bye-laws for IT and Biotech Building with an FAR of 150, the Board has resolved to adopt the bye-laws for IT and Biotech Parks as per the approval conveyed by the Town & Country Planning Department vide their Letter No.27/13/TCP/07/Pt.file(872) dated 01/03/2007. As the said bye-laws do not apply to SEZs but apply only to IT and Biotech buildings, the Board by applying these bye-laws to Industrial Areas has violated the law and completely misapplied the Provisions of IT and Biotech bye-laws, as a ploy to grant extra FAR for construction to the applicant Companies.

14. The item-wise Cost Projections in the Applications of two companies do not tally with the total cost of the Project. This indicates that the Applications have been made in the most haphazard manner and the land has been allotted to these Companies without there being any application of mind or thorough scrutiny.


15. In the 287th Meeting of the Board, there is no reference at all of allotting any open space or space for a road to the Accused Companies and the same has been done without any Authority of Law or for that matter, without there being any Board Resolution; therefore, the allotment is void ab initio. In fact, the said land allotted for open spaces and road was given at the rate of Rs.100/- per square metre in the 295th Board Meeting dated 09-03-2007 which is much below the approved rate. In fact, SEZ area is a contiguous area as per the requirements of SEZ and therefore, all infrastructural areas like roads, open spaces etc., become a part and parcel of the SEZ; therefore, the question of the same being allotted separately at a lower rate does not arise at all.

Thus from the above, it is abundantly clear that the allotment of land done in favour of the applicant Companies is completely illegal and in violation of the SEZ Act, 2005; the Goa, Daman & Diu Industrial Development Act, 1965. By allotting these plots, the Board members of the Goa IDC have shown favouritism and have allotted the land for some extraneous considerations and in a completely illegal manner. This whole land allotment appears to be a big scam and all these five Companies appear to have the aim of grabbing large tracts of Goan land by using the Government machinery in connivance and collaboration with the Goa IDC who have willingly obliged these Companies for obvious reasons, thereby causing loss of revenue to the State and playing a big fraud on the people of Goa.

In the instant case, there was obviously a conspiracy hatched by the GIDC Board and the applicant Companies to drain out the Public Exchequer and sell of Goa precious and limited land assets.


Therefore, an FIR has been lodged under Sections 7, 8, 9, 11, 12 and 13 of the Prevention of Corruption Act, 1988, under the Indian Penal Code and under other laws as applicable.

WHY GOANS SAY NO TO SEZS

SEZs were conceptualised for export promotion, to suit the needs and requirements of states having an abundance of cheap labour and barren land. Goa being a tiny state, has neither. Therefore, there is no justification for the Government to inflict a policy that would open the flood gates for even more out of state workers and further strain Goa's already crumbling infrastructure and dilute the fast eroding Goan identity.

That the Government will not supply water to the SEZs only means that they will get free water by intense tapping of our precious ground water resources in the form of bore wells or buying commercially through tankers. Rain water harvesting, will never under any circumstances meet even a fraction of their needs. And the Chief Minister's assurance that SEZ developers will have to make their own arrangements for water contravenes the Government Resolution on SEZs, "Water Supply (ii) The SEZ authority (Special Economic Zone Authority constituted under sub-section (i) of Section 13 of SEZ Act) shall ensure the provision of adequate water supply within the SEZ zones for SEZ units".

In the Verna Industrial Estate, almost every industry has sunk innumerable borewells indiscrimately because the Government had promised a quantity of water that it could not supply. As a consequence, the ground water table in the surrounding villages has been seriously depleted. And the Government continues to turn a convenient blind eye to this illegal activity. Even today, in the proposed SEZ in Verna, the developers are certainly not depending on the Government's erratic and undependable water supply but have already started sucking the ground water through borewells and the locals can brace themselves for a future of long, hard, dry days.

After in depth studies of allocation of land and implementation of SEZs that have already taken place in Goa, there is no doubt that this policy certainly does not have the objective of export promotion, but is in reality a ploy to sell off large chunks of Goan land to hungry real estate enterprises from all over the country, who will enjoy all the tax benefits earmarked for SEZs, even as they destroy Goa in collusion with the powers that be.

It is distressing that this callous Government does not feel any compunction about handing over large tracts of Goan land to SEZs, which are in fact autonomous islands "a state within a state", where the Government loses jurisdiction, and for this, the Goa Government and the hapless village panchayats, do not even benefit through revenue. Why should the "aam aadmi" of Goa carry this unbearable burden to fulfil the profit motives of vested interests and real estate developers and in the process create employment for the undeveloped states of the rest of the country.

The PMAS disagrees with the Chief Minister's statement that that the "state government cannot go against the permissions given by the Centre for SEZs in Goa". We'd like to refresh the Chief Minister's memory that he was prepared to contest the public notice of a Central Government Agency, namely Mormugao Port Trust, regarding jurisdiction over Goa's coastal waters, which was notified twenty years ago and yet seemingly has no reservations about handing over Goa's coastal waters, which was notified twenty years ago, and yet seemingly, has no reservations whatsoever, in handing over valuable land assets of Goa to private parties, in the shape of SEZs which are in fact, autonomous islands, a "state within a state" where the Government loses jurisdiction, and for this, the Goa Government and the hapless village panchayats do not even benefit through revenue. Why should the "aam aadmi" of Goa carry this unbearable burden to fulfil the profit motives of vested interests and real estate developers and in the process strain Goan infrastructure by creating employment for the hordes of migrants from undeveloped states of the rest of the country.

SEZ is a life changing policy for Goans, affecting their demography, environment, infrastructure and even identity. The CM has been elected by the Goans to look after their interest and not to fulfil the compulsions of the Centre or to condone the negligence of previous state Governments. The Goan "aam aadmi" has said a resounding NO to SEZs through their gram sabha resolutions and the South Goa Zilla Panchayat resolution. If necessary, he has to contest any policy thrust upon Goa by the Centre which goes against the interests of the people he has promised to serve.

The PMAS therefore has appealedto the Chief Minister to kindly:

stay all ongoing SEZ activity in Goa, revoke allocation of all land granted for SEZs in Goa & withdraw the SEZ policy for Goa immediately

Initiate a CID/CBI inquiry into the alleged frauds in handing over large tracts of Goan land in Phase IV of the Verna Industrial Estate to so called SEZ developers

failing which, we will be compelled to proceed to the next step in our plan of action.



For PEOPLE'S MOVEMENT AGAINST SEZS




Charles Fernandes,
Convenor

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