PIL alleges ‘irregularities’ in GIFT City project

A resident of Ahmedabad has alleged irregularities in the allotment of 26,77,814 square metre land at a throwaway token price of Rs 1 per square metre for the state government’s Gujarat International Finance Tec-City (GIFT City) project to a company that was formed as a joint venture by the state government and a private company.

Written by Express News Service | Ahmedabad | Published: April 27, 2013 4:52:29 am

A resident of Ahmedabad has alleged irregularities in the allotment of 26,77,814 square metre land at a throwaway token price of Rs 1 per square metre for the state government’s Gujarat International Finance Tec-City (GIFT City) project to a company that was formed as a joint venture by the state government and a private company.

The petitioner,Pathan Mohammed Suleman from Shahibaug area of Ahmedabad,moved the Gujarat High Court (HC),seeking a CBI probe into the entire episode. The court Friday issued notices to the concerned respondents and kept further hearing after summer vacation.

According to the petitioner,the state government had authorised the Gujarat Urban Development Company (GUDC) to undertake the GIFT project in a joint venture with the Infrastructure Leasing & Financial Services Ltd (IL & FS). And,subsequently,GIFT Company Ltd was formed by the IL & FS and the GUDC as a joint venture.

According to the petitioner,the state government had allotted 26,77,814 square metre land worth Rs 500 crore in 2007-08 to the GIFT Company Ltd in Gandhinagar. Subsequently,the state Cabinet allotted 10,11,744 square metre land to GIFT SEZ Ltd and 16,66,070 square metre land to GIFT Company Ltd for a nominal price of Rs 1 with the condition that during the first phase of the project,the surplus amount received by the developers shall be divided between the Gujarat government and the two companies in 50:50 ratio.

The petitioner claimed that the land allotment was done without even ascertaining its value on the date of allotment (Rs 2,760 crore). He further stated that the Comptroller & Auditor General of India (CAG) has also pointed out irregularities in the land allotment for the GIFT City project.

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