NICE eyes set on real estate biz: CM

NICE eyes set on real estate biz: CM
HDK dismisses media reports
Deccan Herald


BANGALORE:Chief MinisterHD Kumaraswamy said inthe Assembly on Thursdaythat “real estate business”was the first priority ofBMIC promoters and not theconstruction of the expressway between Bangalore andMysore.

In his reply to the debateon the controversial project,the Chief Minister offeredto hold a judicial inquiryinto the issue but steeredclear of his earlier assertionto bring legislation to takeover the project.

However, the Congressmembers resorted to dharna as the Chief Minister rejected their demand for conducting a probe by the Central Bureau of Investigation(CBI).Leader of the Opposition Dharam Singh and others said the judicial inquiryhad limitations as suchprobe had no power to prosecute the culprits identifiedin the process of inquiry,unlike the CBI which hadpower to prosecute.

Disclosing that the government was still “searching”many more records related to the project, Mr Kumaraswamy said that theHigh Court and theSupreme Court had madesome adverse remarksagainst the government andits officials as the government could not place somecrucial information beforeto the Court due to the“missing records”.

He said till today NICEhad not furnished designs,maps and other details relating to the project to the KIADB or the PWD.

While referring to a letter written by the NICE to afinancial institution statingthat it (NICE) was confidentof winning the case beforethe Supreme Court, theChief Minister wonderedhow the NICE was sureabout winning the casemuch before the verdict wasdelivered.

Mr Kumaraswamy alsojustified the action of thegovernment in filing a review petition before theSupreme Court saying thatit had been done as per theadvice of legal experts.

He also made it clear that there was nothing to worryabout the judgments as “thecourts have left everythingto the government.” Hepointed out that the HighCourt judgment (in Somashekara Reddy case) hadclearly indicated that legislature had the power to nullify the agreement with NICE.

The Chief Minister informed the House that someofficials had “cheated” thegovernment by signing a tripartite agreement withNICE in August 2002 permitting the company to sell theland at interchanges inclear violation of originalthe frame-work agreementand the High Court verdicts.

While rejecting the demand for CBI probe, he asked what the CBI has donein the fake stamp paperracket case.

“I am not running awaynor am I afraid of any probe.But everyone knows how theagencies like the CBI areused.” Mr Kumaraswamyalso charged NICE of committing financial fraud andmisleading the court at various stages during the lastone decade.

Tracing the chronologyof the project, he said thatas per the original agreement a consortium comprising Vansase HangenBrustlin Inc and SAB Engineering and Kalyani Grouphad agreed to execute theproject. However, all rightshad been transferred to the present promoters NICE inSeptember 1996. Allegingthat NICE had staged abackdoor entry to executethe project, Mr Kumaraswamy said the government had not even givenconsent for the transfer ofrights.

Kheny reacts

Reacting to CM’s decision to order a judicialprobe into the BMIC projectcontroversy, NICE MDAshok Kheny said: “Let thegovernment order a judicialprobe.The Chief Minister isabigger man than me. Weare not afraid as we havebeen working within thepurview of the frameworkagreement.”

Chief MinisterHD Kumaraswamy andNICE MD Ashok Kheny onThursday rubbished reports in certain section ofthe media that a “compromise formula” has beenreached between the Government and the NICE.

As per reports appearingon Thursday,it was suggested that Mr Kumaraswamyand Mr Kheny had resolvedto set up a development fundfor the poor after auctioningoff excess land.The two hadheld a low-key meeting atVidhana Soudha on last Friday.

“What help to the poorand which money? Does themoney belong to his (MrKheny) ancestors? Whyshould I compromise?”asked Mr Kumaraswamy inthe Legislative Assembly.

Later, speaking to reporters, the Chief Ministersaid there was no questionof arriving at any compromise when it comes to NICE.“I will go by the decision Ihave announced in the Assembly. It is a fact that MrKheny met me last Friday.He had sought an appointment and my officialsobliged. He apprised me ofthe project.I was just listening to him, but did not sayanything,”he added.

Mr Kheny also said hehas not made any statements on the issue. “I havenot said anything aboutreaching a compromise.Thereports do not identify whomade these statements. TheChief Minister wantedsome details regarding theproject, which we gavehim,”Mr Kheny said.

“I learnt about the ‘compromise formula’ only fromnewspaper reports,” hesaid.