Below is the handout circulated at the press conference held by Dr. Samir Kelekar:
------------------------------------------ Press Conference on the Dona Paula IT park Dr. Samir Kelekar Date: March 6 2008 Lack of due diligence of the companies before plot allocation has led to cases where questions can be raised whether the promised jobs will come to the Goans as well as whether the plots will be used for the intended purpose. I demand a full inquiry into the following cases as possibilities of fraud seem obvious in the following. 1. Allotment to Goa Tech Parks Private Limited: This company has been alloted a plot even before its existence. It is a JV of two real estate companies Unity Realty and Developers Limited and BSEL Infrastructure Limited and has been alloted a plot in the real estate category. Its certification of incorporation is dated March 12 2007, while I have proof that this company was allocated a plot on January 5 2007. You can get the appropriate proof through the Right To Information processes. This is illegal and one can only imagine what must have gone through to do an allotment of this kind. I demand to see when this company applied for a plot, and on what basis was it granted one before its existence. Any legal documents of grant to a non-existing company obviously should become void. The people of Goa should be told about this. 2. Allotment to Technology Options (India) pvt ltd: This company which has the sister and brother-in-law of the IT minister as directors does not run a call center in Mumbai as claimed by the IT minister. A visit to its registered office at C. S. T. Road in Santa cruz (East) revealed a chartered accounts' office in the same place. On inquiries, I was put through to someone who claimed to be a director of the company. He mentioned that the call center that they were running in Mumbai has been closed. I suspect that they never ran any BPO, call center in the first place. I demand of the Infotech Corporation the details of the call center that they claimed to run: when and where it was running, who were the customers, and their addresses, all invoices raised, what was the call center doing, who were the employees and their addresses, and finally why it was closed. This company has been given 10861 square meters of land in the area of IT and ITES, an area where 1500 jobs should be created. (It is another matter that their project report has promised 800 jobs.) I suspect this could be a ruise to grab land. The Goan people need satisfactory answers to the above questions, failing which the allotment made to them should be reverted back. 3. Allotment to Ampersand Digimedia ltd: Ampersand Digimedia is a Mumbai based company alloted a plot of 4053 square meters in the area of IT and ITES on 18 september 2006. This company claims to develop multimedia software. A visit to its registered office at Worli Sea face in January 2008 revealed a different company in the place. The person present in the new company mentioned that Ampersand Digimedia has been closed two years back. Even a phone call revealed the same information. Ampersand Digimeida also has all brothers as its directors which is also a sign of non-professional management. I would like to know what due diligence was done to grant a plot to this company, as also what are the provisions in the contract to revert back a plot if the company closes down its office. Further, I demand to know what multimedia work this company has done in the past, how many employees it had in the past, who were its customers. This company obviously cannot create 600 jobs that are meant for the space that they have been allocated (they have however promised only 186 jobs in their project report), and hence its plot should be reverted back. I demand an inquiry into this. 4) Possibilities of fraud: There are many ways of doing a fraud to grab a plot of land in the prime land at Dona Paula. Given that a plot of land of 4000 square meters is available for Rs. 4600/- per square meter, assuming the market price to be Rs. 30,000/- per square meter, the profits to be made on a plot are to the tune of around 12 crores. It is quite possible that a real estate party can spawn an IT or ITES company, even show some revenue. To meet the criteria, the real estate company itself can pass some money ( a few lakhs ) to the IT, ITES company and the IT, ITES company can claim it as its revenue. A look at the MCA (ministry of company affairs) filings would show a running profitable company. The company can then sell the plot making a clean Rs. 12 crores. Hence, it is important to see what is the nature of the work that the IT or ITES company is doing, who are its customers. Further, if it has to generate 600 jobs, Infotech corporation has to sit with the management of the company to determine a roadmap for the company where it will grow year by year so that it is capable of generating the amount of jobs that are needed for the space allocated. In other words, the project proposal given by the company cannot be a one time piece of information, but it should be a live document whose progress has to be closely monitored. In the absence of satisfactory progress, there must be a warning given and if there is still no progress, the plot reverted back. Otherwise, there is a chance that a company can just grab the land and run away with it. 5) Land allocated disproporationate to the jobs promised: 60 square feet are more than enough for an employee for sitting purposes in an IT or ITES company. I invite you to Bangalore to show how comfortably people can sit in less than 60 square feet. If one adds conference rooms, cafeteria, toilet space in a very liberal fashion, 80 to 90 square feet per employee are more than enough. The Infotech corporation has given out space around 2 lakh square meters, with 150% FAR, which amounts to 30 lakh square feet, which is enough for 30,000 employees if we count 100 square feet per employee. The jobs promised are around 12,000 to 15,000. Thus, the space given per employess is 2 to 2.5 times what is generally required. This just shows that the idea is to give out huge space --- more than what is necessary. Conclusion: The CM has made an assurance that the IT park will be scrapped if it is not used for IT purposes. The use of the park for IT and ITES purposes is not something that will be evident only after say 2015. The signals can be seen every day. So that huge amount of money is not spent by companies as well as Infotech corporation -- a fact which will make it difficult to scrap the IT park later, it is important that a road map is made for companies that they achieve certain milestones --- which will give clear indications whether a company is out to turn its space into job creation for IT or something else. And this has to be begin with due diligence at the time of allotment itself. Especially, for IT companies, one needs to check if they are really in the IT business or are just a front company to grab land. It will be too late otherwise to take these companies to task. In the current scenario, an inquiry needs to be done in all of the above cases. ____________________________________________________________________________________ Never miss a thing. Make Yahoo your home page. http://www.yahoo.com/r/hs