K'taka panel recommends probe into 'violation' of framework

A Karnataka legislative committee has recommended a probe by either CBI, ED, vigilance commission or an investigative agency of equal standing into alleged violations of the framework agreement by the Nandi Infrastructure Corridor Enterprises in implementing the Bengaluru-Mysuru Infrastructure Corridor project.
The 11-member committee formed to look into the alleged violations in its voluminous report, tabled in the Legislative Assembly today, has come to the conclusion that out of 22 articles in the framework agreement, 16 of them have been violated by the private partner which is NICE.
NICE is the implementing agency of BMIC project, which includes developing the 111-km four-lane expressway, five townships and supporting infrastructure.

The committee has made an attempt to arrive at the presumptive figures relating to both intended and unintended income- it includes illegal mining in project area (Rs 242 crore), excessive exemption from stamp duty and registration fee, excess land of 605 acres, transactions not authorised under the framework agreement (Rs 4956 crore) and excessive levy of toll based on bitumen/white topping road instead of concreted roads (Rs 1350 crore), it said.
Also grant of government land on lease instead of transfer by sale, deferred payment option for compensation, reduction in service charge leviable by Karnataka Industrial Areas Development Board (KIADB) are a few instances where benefits beyond what is discussed in the framework agreement have been extended to the private partner, it said.

A committee member suggested that the presumptive loss to the government because of this, may be to the tune of Rs 1,60,000 crore.

The report was tabled in the assembly by the committee Chairman and Law and Parliamentary Affairs Minister T B Jayachandra.
The committee felt there is an urgent need to finalise "companies events of default" and "Government of Karnataka's events of default" to facilitate specific identification of omissions and commissions.
It said considering these developments, the current stage of the project, amendments and modifications to the project profile and irregularities in the framework agreement management, there is urgent need to institute an inquiry fixing accountability and also taking remedial measures.

The committee hence recommended an exhaustive inquiry by CBI or ED or vigilance commission or investigative agencies of equal standing under changed circumstances, it added.