A couple of lease deeds is all it takes to put him in jail

‘‘Granting undue favours (by Pirzada) is also an act of corruption,’’ says Vigilance chief director Mohammad Izhar Alam. Consider what these ‘‘undue favours’’ were:

• Premises of Govt-owned Punjab Recorders Ltd (Pirzada was its ex-officio chairman) were leased out to a private company Magnetic Information Technology Limited (MIT) by the Government for Rs 25,675. MIT, then, unauthorisedly leased it out to Infosys Technologies for 2 lakh and then later Rs 3.5 lakh per month

When contacted in Bangalore, the man who signed the lease on March 9, 2000, H R Binod, senior manager, commercial, Infosys, told The Indian Express: ‘‘We were aware that MIT was authorised by Punjab Recorders Limited to sub-let their premises. This clause was in the agreement. Infosys does not proceed in any matter without fully examining the legalities.’’

‘‘Do you think a company like Infosys needs to dole out commissions to get premises from a state government?’’ asks Pirzada’s lawyer Raj Birender Singh Chahal. And adds that Vigilance came up with the ‘‘Rs 95 lakh-loss because of Pirzada’’ by brushing aside one key fact.

That the MIT took the premises on lease way back in 1983 for 30 years at Rs 25,675 per month. ‘‘Pirzada was nowhere around at that time. What the VB has done is to make it appear that MIT took the premises from the Government at just Rs 25,675 and rented it to Infosys for Rs 2 lakh and later Rs 3.5 lakh along with a security of Rs 21 lakh. It’s this difference in rentals plus the security that’s been counted as loss to the Government caused allegedly by Pirzada,’’ says Chahal.

Incidentally, says Chahal, in 1998, MIT had sub-leased the premises to another company, ESSAR Comm Vision Ltd, for Rs 2.5 lakh per month. At that time, no objections were raised.‘‘This fact is not disclosed/mentioned in the FIR,’’ says Chahal.

• Lease deed between Punjab Recorders Ltd (PRL) and MIT says that MIT cannot sub-lease without prior approval of financial institutions.

All dues of FIs were cleared by MIT in 1997 and no-due certificates obtained, says Chahal. ‘‘Till date, no FI has filed any complaint against MIT on this subject. There is no litigation/complaint pending between MIT and FIs,’’ he says.

• Pirzada signed the sub-lease between MIT and Infosys in his personal capacity and not in his official capacity as chairman of Punjab Recorders Limited.

‘‘Is signing as witness on any legal and valid document a criminal act?’’ asks Chahal. ‘‘Even if Pirzada had not signed as witness, this sub-lease would hold good between MIT and Infosys.’’

• Premises owned by state govt were leased to Country Club, a resort, for Rs 20,000 per month without prior approval of the PSEDC’s board of directors

Chahal cites the lease to counter this. ‘‘In the lease deed (signed in November 2000), it is clearly mentioned that the rent is to be increased to Rs 80,000 per month after 2 years with an annual increase of 5 per cent. In fact, Pirzada advertised in national and local papers before leasing out this premises and the matter was referred to the board of directors. It’s also mentioned that the deed is subject to the approval of the directors.’’

The club was shut down in 2002 after the board of directors terminated the lease saying Pirzada wasn’t authorized to rent it out without their permission.

• Appointment and enhancing tenure of four candidates on annual contractual basis without prior approval of Government

Chahal says these appointments and enhancement of tenure were part of the efficient working of the Corporation. ‘‘If the Government felt so strongly that the appointments were wrong, why have these not been cancelled? These four employees are still working there at the Corporation.’’