Goa govt to drop SEZ 'scam' cases against Rane, Faleiro,

The Goa government today decided to withdraw anti-corruption cases against three senior Congress leaders including two former chief ministers in connection with an alleged Special Economic Zone (SEZ) scam.

The decision was taken at a meeting of the state cabinet, chaired by Chief Minister Manohar Parrikar, a senior minister said.

The cabinet also decided to seek out-of-court settlement with five SEZ promoters by paying them Rs 256 crore.

In 2008, the erstwhile Digambar Kamat-led government scrapped SEZ proposals following protests by local people and allegations of irregularities and corruption.

The SEZ promoters moved the Supreme Court against the decision. The Apex court, in February this year, directed the Goa government and promoter companies to work out an amicable solution while fixing the next hearing in July.

In 2012, the state government had filed cases under the Prevention of Corruption Act against former chief minister Pratapsingh Rane, former industries minister Luizinho Faleiro and former chairman of Goa Industrial Development Corporation (GIDC) Chandrakant Kavlekar, as the land allotment had taken place during their tenures.

Faleiro has been a chief minister too.

"The cabinet today decided to drop the cases against all three leaders after a settlement with SEZ companies is worked out and the land is returned to the state," a senior minister told PTI on the condition of anonymity.

He said the cabinet also decided to direct the GIDC to pay Rs 256 crore to the five SEZ promoters as a part of amicable settlement.

"It comprises the principal amount of Rs 133 crore and interest," he added.

SEZ promoters K Raheja & Corporation, Peninsula Pharma Research Centre, Planetview Mercantile Co, Inox Mercantile Company and Paradigm Logistics & Distribution had stated that they were ready to return the land if the government refunded them the purchase amount with 15 percent interest.