Sword hangs over BMIC as Government contemplates annulling agreement

Sword hangs over BMIC as Government contemplates annulling agreement

S. Rajendran

A decision will, however, be subject to the directions of the Supreme Court

# PWD asked to be ready to complete the project
# Government tired of the delay of nearly 12 years



HANGS IN BALANCE: A June 16, 2006 photo of the inauguration of the first phase of the BMIC project at Somapura junction on the outskirts of Bangalore. — Photo: K. Murali Kumar

The Karnataka Government is likely to nullify the contract with the Nandi Infrastructure Corridor Enterprise (NICE), which is implementing the Bangalore-Mysore Expressway Project. Any decision of the Government will, however, be subject to the directions of the Supreme Court before which there are several petitions pertaining to the subject.

High-level sources in the government told The Hindu here on Thursday that the Government was tired of the delay of nearly 12 years in the execution of the project which is mired in litigation. The State Public Works Department has been asked to get ready to step in, if need be, and complete the project within two years.

The Government has filed an interlocutory application before the Supreme Court seeking the modification of an earlier order of the court in relation to the expressway project. The Supreme Court has been informed that the Government has tracked down two important files relating to the project.

Suppression of files

"The suppression of the files along with fabrication of records by a group of officials has resulted in the Supreme Court issuing certain directions to the Government. Now that the files have been traced, the Government has sought a modification of the order," said the source.

The interlocutory application is likely to be heard by the Supreme Court in the last week of July.

Talks

Chief Minister H.D. Kumaraswamy has held several rounds of discussions with senior officials of the Public Works Department to undertake the expressway project, if the need arises.

The Government would require at least Rs. 5,000 crore to execute the project on the same standards prescribed for NICE. The Chief Minister is also holding discussions with Law Department officials and legal experts on the course of action following nullification of the contract with NICE. Under the framework agreement, arbitration proceedings are to be held in London.

The sources said the Government is thinking of calling off the agreement with NICE after the recent seizure of two important files relating to the implementation of the project that had been "suppressed by some of the officials of the State".

Hence, the Government has sought the Supreme Court's permission to carry out a preliminary fact-finding inquiry into how 2,289 acres of land over and above what was stipulated in the framework agreement was made over to NICE.

Files

The two files are the KIADB (Karnataka Industrial Areas Development Board) file number 1,256 pertaining to the expressway project, and PWD (Public Works Department) file number 155 CRM/95/Government land/99-2000 (2001).

The Government has sought action against the officials who allegedly suppressed the files and fabricated records. In the petition to the Supreme Court, an official, a former Public Works Department Secretary Major, has been identified as having allegedly colluded with NICE.

It has sought permission to continue with the B.C. Patel Commission of Inquiry (relating to the expressway project). The commission's work was suspended following a submission made to the court by the Government.