CAG slams SIPCOT for failing to comply with HC directives on Thervoykandigai land acqusition

Chennai:

The Comptroller and Auditor General report said  State Industries Promotion Corporation of Tamil Nadu (SIPCOT) for failing to comply with High Court order on making provision for alternate land after the company acquired 1,127 acres of government’s Meikkal promboke land in Thervoy Kandigai.

The report said the company obtained alienation orders for taking over the land with a condition to identify alternative land of equivalent extent and value (Rs 6.48 lakh per acre) in the nearby area within three years or else pay 12 per cent interest per annum for three years along with land cost.

Interestingly, Madras High court based on a petition ordered the company to compulsorily ensure provision of alternative land and ruled out the monetary compensation originally ordered by the state government.

Inspite of this prerequisite, the company went ahead with the allotment of 543.06 acres of land between July and November 2010 without making arrangement for alternative land as per the directives of Madras High court.

“SIPCOT was facing the risk of purchasing patta land at higher cost (Rs 10 lakh per acre) to comply with high court orders. However, the additional cost was not factored into the fixation of the plot cost for the scheme even though all the above allotments were made after the pronouncement of the judgement,” the report said. It said the company is exposed to Rs 39.67 crore in the scheme.

Interestingly, till date the identification of land by Land Acquisition Officer (LAO) was still at preliminary stage without any concrete proposal to the government for getting its administrative sanction for alienation of land.