 "GIFT defends itself in suit by ex-director")
The Gujarat International Financial Tec-city Company (GIFT City) has told the high court in Ahmedabad that a public interest suit filed against it was an abuse of the process of law. The petitioner, D C Anjaria, 69, a former independent director and audit committee chairman, claims to have presented the project to the state government 10 years ago.
GIFT City is a 50:50 joint venture between Gujarat Urban Development, a state government undertaking, and publicly held Infrastructure Leasing & Financial Services (IL&FS). The HC had issued notices to GIFT City on Anjaria’s petition in February.
Anjaria had filed the suit in December, alleging various irregularities and praying that a Special Investigation Team be formed to investigate how the interest of the state has been allegedly compromised. The suit also alleged irregularities in awarding of consultancies. GIFT City, a favoured project of Prime Minister Narendra Modi, is being marketed as the first 'global financial hub' in the country. A part of the city was notified as a multi-services special economic zone, for development of an international financial services centre.
On the suit, GIFT City said “The petition has been filed with malice and to serve the personal interest of the petitioner.” Adding: “The petitioner sometime around the beginning of the year 2010 had proposed the setting up of a specialist training institute by the name of Indian Institute of Financial Services, within the GIFT City project. In this regard, the petitioner had approached IL&FS for assistance in setting up of the said institute and for financing the same.”
In this regard, various e-mails were exchanged between the petitioner and IL&FS, the company said. “However, it appears the petitioner did not succeed in getting help for setting up of the said institute within the GIFT City Project.”
According to GIFT, the issue of selection of IL&FS raised in the petition had been put to rest by a HC decision in 2013 itself. Further, it argued, Anjaria did not raise the issues of irregularities during the several board meetings he attended till 2011.
The Special Purpose Vehicle has also contended that it was not an arm of the state and therefore not amenable to the writ jurisdiction of the court. It added no rule was flouted in the hiring of consultants. It also denied that the JV agreement dated May 2007 was in violation of the Gujarat Infrastructure Development Act, 1999. The Act, it said, applied only to financing, construction, maintenance and operation of infrastructure projects awarded by way of a concession agreement to a person. It argued that the incorporation of GIFT was governed by the Companies Act.
In a rejoinder to the GIFT City reply, Anjaria reiterated that the petition deserved to be admitted. His contention is illegalities, diversion of funds and loss to public exchequer. He says he's been continuously raising these issues since 2011 and was restricted by lack of information, allegedly withheld by the management. He reiterated that GIFT City was 'State' within the meaning of Article 12 of the Constitution of India. According to Anjaria, the GIFT City response was based on only one element of equity interest of the Gujarat Government/GUDC.
“However, the company has to pass all tests under Article 12 of the Constitution which it does (not) and is State within that article.” He says the law on the comptroller and auditor general's ambit and of the Right to Information Act both apply, as GIFT is substantially financed by the state government.
