Congress demands probe into land deal of minister's son

CAG points out there is no policy or procedure for allotment of land by the GA dept

After the Comptroller & Auditor General of India (CAG) pointed out anomaly in land lease to Hotel Ambassador International, a hospitality firm promoted by son of state revenue minister Surya Narayan Patra, the Congress has sought an independent probe into the deal.

Alleging that chief minster, Naveen Patnaik and officials of GA (general administration) department misused their powers while allotting the land, the senior Congress leader Narasingha Mishra said, "the land was allotted in the name of Biplab Patra, son of revenue minister S N Patra. The nexus between Biplab and the chief minister, who is also the minister for GA department, needs to be probed. An independent and unbiased agency should enquire the deal. Let the culprits be punished."

Revenue minister Patra said, "the CAG has pointed out there is no policy or procedure for allotment of land by the general administration department. The government has now formed a Cabinet sub-committee for formulating a policy for land allotment. This committee will study the prevailing policies of land allotment of other states and submit its report to the government."

Responding to Mishra's allegations, chief secretary, B K Patnaik, said, "The land for the hotel was allotted many years back. We have to examine the deal. File records have to be checked."

CAG in its performance audit said, 1.010 acre land was allotted to Hotel Ambassador International in Unit-8 locality of the city by changing land use zone from residential to commercial. The entire process of land allotment was completed in 56 days and the applicant was allowed to pay premium at the rate of Rs 50 lakh per acre against applicable commercial rate of Rs 75 lakh per acre. After one installment, the allotte requested to change the lease in favour of 'Hotel South Pac Pvt Ltd', a company promoted by his family members for which approval was given.

The land continued to remain unused except construction of boundary wall and one small hut. The state government cancelled the lease in November 2012 and forfeited the premium and interest.