BMIC: NICE played a ‘fraud’ on state

BMIC: NICE played a ‘fraud’ on state
New Indian Express

BANGALORE: The State Government and the Karnataka Industrial Areas Development Board (KIADB) filed affidavits before the High Court stating that they are ‘‘victims’’ of a fraud by Nandi Infrastructure Corridor Enterprises (NICE).

Nevertheless, they want the NICE to implement the Bangalore-Mysore Infrastructure Corridor project, not asking for any excess land.

‘‘It is submitted that the entire exercise is a fraud played on the state of Karnataka and it renders the so-called assignment void and void ab initio. NICE Limited is not entitled to claim any status in law and no locus standi to sustain any claims against the State. This matter came to light only while finalising this statement during the weekend.

‘‘The Government of Karnataka which has been the victim of this fraud played by NICE hereby repudiates the claim of NICE to continue as a contracting party to the MoU,’’ the government’s affidavit said.

The KIADB’s affidavit said that the State Government entered into an MoU on Feb 20, 1995, for the project with a consortium comprising the two US-based companies, Vanhasse Hangen Brustlin Corporation, and SAB Engineering and Constructions, and Kalyani Group (Pune-based), and not with the Nandi Enterprises.

The Public Works department, however, issued an order on March 27, 1997, stating that the consortium had floated NICE to execute the project following a representation to that effect by NICE.

The KIADB maintained that the consortium did not establish the NICE as there is no assignment agreement between the two.

The KIADB affidavit has highlighted a clear collusion between then PWD Secretary Major C R Ramesh and NICE.

The official issued orders on his own at times, and without properly briefing the government. It cited one order where Ramesh signs ‘‘for and on behalf of Governor of Karnataka,’’ and not below ‘‘By order and in the name of Governor of Karnataka,’’ as it should be.

Ramesh, a signatory to the Feb 20, 1995 MoU, joined NICE as its Project Director after his retirement in 1999.