Reliance to get back bank guarantee for SEZ

Reliance withdrew the case pending in the high court and signed a memorandum of settlement.

Written by Express News Service | Lucknow | Published: July 24, 2012 3:35:23 am

Five years after the Mayawati government rejected a proposal of the Anil Dhirubai Ambani group to set up multi-product SEZ in Noida — which had been cleared by the Mulayam Singh government — the UP government today agreed to return the Rs 1,200 crore bank guarantee.

Reliance withdrew the case pending in the high court and signed a memorandum of settlement.

The decision was taken at a cabinet meeting presided over by Chief Minister Akhilesh Yadav.

The group had approached the court after the Mayawati government rejected the proposal,saying it was against the rules of SEZ framed by the Government of India.

About 2,500 acres of land had been notified in 2006 for the project,against which Reliance had deposited security money of Rs 1,200 crore. The land was given to Reliance on “first-come-first-served” basis,which was also objected to by the Mayawati government. The previous government had also imposed about Rs 800 crore stamp duty on Reliance,but the group had objected,saying that the land was not yet handed over to them.

“In 2007,the proposal of Reliance to set up the SEZ was rejected on the ground that it did not fulfill the guidelines of Government of India. So far only 750 acres of land could be acquired out of 2,500 acres required for the project. Since the government could not give the required land for the project,the group wanted to withdraw its bank guarantee,” informed Anil Kumar Gupta,Industrial Development Commissioner.

The 750 acres already acquired by the NOIDA authority will now be used for some other project by the state government.

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