Odisha govt MoU on bus terminal quashed by HC

A Division Bench headed by Chief Justice V Gopapal Gowda quashed the deal saying it was done by violating statutes governing land acquisition and other provisions of the law.

The deal, was signed in August 2010 under PPP mode, was slated to be developed in four phases.

The project was to come up on 14.43 acres of land, of which 60 per cent was earmarked for bus terminus while the remaining area was to be used for commercial facilities like retail, shopping mall, offices, multiplex, food courts and residential units.

The government-ARSS deal was challenged in the High Court by former corporator of the Bhubaneswar Municipal Corporation Samir Mohanty, questioning legality of the project saying it was not done after proper legal scrutiny.

Mohanty had also questioned the 90-year lease given to the private firm for collection of user fee, entry fee and parking fee, including the lease premium for commercial facilities.

Similarly, 80 other persons, who were earning their livelihood from kiosks at the bus stand, had also challenged the state government's decision to hand over the facility to a private concern for modernisation.