HC orders issue of notice to Commerce Secy, TN Chief Secy

Madras High Court today ordered issue of notice to Union Commerce Secretary, Tamil Nadu Chief Secretary and Industries Secretary and others on a PIL, which sought to recover Rs 66.57 crore from Mahindra World City Developers and Mahindra GESCO Developer Limited, Kancheepuram.
The First Bench, comprising Acting Chief Justice Rajesh Kumar Agrawal and Justice M Sathyanarayanan, issued notices to the Managing Director of Tamil Nadu Industries Development Corporation and others returnable by September 8 on a PIL filed by former MP and Member of Legislative Assembly K Krishnamurthy.
Krishnamurthy, an advocate, is also a former MP representing Mayiladuthirai and former MLA of Kumbakonam constituency.

The petitioner submitted that the Tamil Nadu government acquired 841 acre of patta lands and transferred it to Mahindra World City Developers Limited for the sole purpose of setting up a Special Economic Zone (SEZ).
He contended that the land cannot be sold or misused for any other purpose by the developer as per the Provisions of the SEZ Act, 2005.
However, the firm in the capacity of Developer of SEZ Project, had appointed Mahindra GESCO Developer Limited as co-developer for development of authorised operations for developing social infrastructure, he said.

But instead of developing SEZ activities, Mahindra GESCO Developer Limited constructed villas and semi-bungalows on the government land for promoting its own real-estate business, violating certain provisions of SEZ Act, he alleged.

He also charged the firm with having sold 21.5 acres with villas and semi bungalows to 103 individuals, who are not connected with SEZ activities.
This was further confirmed in the audit report of Principal Accountant General (Economic and Revenue Sector) for 2007-2012, stating that co-developer violated rules.
The petitioner alleged that the act of the firm is illegal and caused irretrievable loss of Rs 67.57 crore to the government.
Krishnamurthy also submitted that the Chief Secretary, being the Chairman of the Empowered Committee, constituted as per the guidelines of the Union government, had also failed to prevent misuse of the lands transferred by the government for development of the SEZ.

Because of the illegal land transfer, the firm was not only "enjoying" the value of the land of Rs 67.57 crore but also Rs 96.84 lakh of stamp duty exemption, which was illegal, the petitioner contended.
He also prayed for a direction to direct the authorities concerned to cancel the development and state support agreements entered with the firms and to direct the authorities to file an Action Taken Report within a time frame that may be fixed by the High Court.