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Arunachal govt didn’t inform CIDCO of pact with builder

The CIDCO agreement also bars the licensee from appointing any person as its power-of-attorney unless he is an officer and servant of the same body.

Mumbai | Published: October 29, 2013 3:16:43 am

The Arunachal Pradesh government as well as its undertaking — the Arunachal Pradesh Industrial Development and Financial Corporation (APIDFC) — did not disclose to CIDCO that APIDFC had entered into a build-operate-transfer agreement with Navi Mumbai-based builder US Roofs (USR) Ltd for developing the 26,375-sq ft plot in Navi Mumbai.

On August 22,2006,APIDFC managing Director Tony Koyu informed CIDCO regarding appointment of “authorised representative of USR” to represent it before government and semi-government agencies for “matters,deeds,things related to the Vashi plot”.

Though the communication said “all acts,matters,things and deeds of the authorised representative of USR” were valid and binding upon APIDFC,it did not disclose the nature of agreement between APIDFC and USR.

Requesting anonymity,a senior CIDCO official said the agency,too,had erred by not seeking a clarification. Inquiries put to Koyu in this regard went unanswered.

The CIDCO agreement also bars the licensee from appointing any person as its power-of-attorney unless he is an officer and servant of the same body.

Urmish Udani of USR Group,who claimed to have perused legal documents before entering into the BOT arrangement,said,“We invested in the plot under the clear opinion that the lease conditions did not bar the appointment of an agency on BOT basis.”

Surendra Ghonkrokta,Secretary (Industries),Arunachal Pradesh government,said the BOT arrangement was not in violation of lease conditions. Sources said the developer and the APIDFC were banking on the fact that transfer of lease was permitted on payment of transfer charges after the lease deed is executed. The deed between CIDCO and the Arunachal government is yet to be executed.

Sandeep Ashar

sandeep.ashar@expressindia.com

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