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This is an archive article published on May 3, 2010

Essential Certificates: misuse,violations go unchecked

The Himachal Pradesh Tourism department may have bailed out entrepreneurs who obtained Essentiality Certificates to set up hotel resorts and other projects in the state,there are strong possibilities of misuse of the ECs.

The Himachal Pradesh Tourism department may have bailed out entrepreneurs who obtained Essentiality Certificates (ECs) to set up hotel resorts and other projects in the state,there are strong possibilities of misuse of the ECs. Some of the promoters who had already pulled out of the projects have been replaced by new investors.

Inquiries reveal that at least two dozens promoters,who did not take any initiative to set up projects or were frustrated by the inordinate delay in getting clearances,have sold out sites to new investors intending diversion of lands.

In one of the 66 cases,on which Director of Tourism Arun Sharma passed orders on April 30,the government has allowed the diversion on May 4,2005,to raise flats. The essential certificate was granted for a resort.

Sahil Kapoor of Gurgaon,who proposed to build the resort Country Inn at Kiarighat in Solan district,apparently dropped the project and constructed flats.

In a classic case of EC dilution,the M/s Shanti Enterprises,which was issued no-objection certificate (NoC) and an EC for a hotel at Sheetalpur village,Baddi,it was also issued another EC for setting up of an industry by the Industries department in May 16,2005.

“It appears to be case of two departments promoting a single project. The district collector of Solan has been asked to resume the land since there has been no construction,” said Sharma.

Sharma,who claims to have gone into the 66 cases,a few of these related to 1998,asserts that each case have been examined on merits and those where the action was required for violations,will be dealt with. Others keen to make investments adhering to the terms of the EC will be allowed to proceed,he said.

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The 12-page orders discusses status of all cases,including those wherein ECs were issued by the BJP government in 2007-08,but enforces conditions on promoters to show progress at the site or the government would resume the lands for which ECs were issued.

Director Tourism was pulled up by the district tourism development officer while passing the orders in the case of M/s JD Resorts,Giripul Rajgarh (Sirmaur),for over stepping his powers to grant extension of the EC.

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