Karnataka Govt. cheque to NICE bounces

More road blocks for BMIC project
Deepa Balakrishnan
CNN-IBN

Bangalore: There seems to be no end in sight to the troubles plaguing the controversial Bangalore Mysore Infrastructure Corridor (BMIC) project.

The Karnataka government's cheque to Nandi Infrastructure Corridor Enterprise (NICE) bounced on Monday, and this has led to a tug-of-war between the BJP and the JD(S), the coalition partners in the Karnataka government.

The Rs 5 lakh cheque, which was issued in compliance with a Supreme Court order and which bounced on Wednesday, proved to be a major embarrassment for the state government.

Though the government is now claiming that it was a technical error on the part of Canara Bank, opposition parties are already taking taking advantage of the situation saying that the government cannot even manage it's projects properly.

However, the Managing Director of NICE, Ashok Kheny had a different story to tell.

"I have been told by our finance department that the cheque given by the state government as per the Supreme Court order has bounced due to lack of funds. The bank informed us of this," he said.

This loss of face for the government is just the beginning of more trouble. The ruling coalition partners are sharply divided on the issue, even as leaders attempt to put on a brave face.

In fact, the divide is so serious, that the question which is doing the rounds these days is, "Will BMIC become an issue in the next elections?"

While the JD(S) has been pushing hard for a bill to take over the entire private road project, it's coalition partner, the BJP, has been consistently opposing it.

The BJP is demanding that the land - which the JD(S) wants to use for developmental purposes - should be given back to the farmers.

With the state Cabinet skirting the issue at its Tuesday meeting, both the BJP and the JD(S) have now resorted to consulting legal experts.

What's making the situation even more perilious for the five-month-old ruling coalition is the fact that the BJP may just be arm twisted into agreeing to the JD(S).

Karnataka Chief Mnister, H D Kumaraswamy said, "In the coming days, I will elaborate on the legal opinion and on how to protect the state's interest."

JD(S) spokesperson, Y S V Dutta says, "Our party stand is clear. We want a legislation to nullify the government's contract with NICE. Whether our partner agrees with this or not is to be seen. We have to look for an amicable solution."

Even as the BMIC controversy refuses to die down, another controversy is threatening to add a new dimension to the issue - Chief Minister Kumaraswamy has been accused of owning 46 acres of land around the BMIC area.

He, however, says that his land will not come in the way of the expressway.