The Bangalore Metro Reporter
THE DIRTY NICE!
LOKAYUKTA COURT’S BLOW TO NICE, PROJECT UNDER PROBE!
The Lokayukta Judge N.K.Sudhindra Rao has dealt a severe blow to the edifice of the multibillion 'Nice Road' frauds by ordering probe by Lokayukta police. The Judge has directed the Lokayukta police to probe the role of 'Powerful' politicians which include among others, former PM HD Deve Gowda to the former CMs S.M.Krishna, B.S.Yeddyurappa to the bureaucrats concerned. Considering the present situation in the Lokayukta, one can dare say that it cannot provide justice to the probe. Only the CBI, which has the necessary infrastructure and competent investigators, can do Justice to the probe.
The Lokayukta Judge N.K.Sudhindra Rao has ordered the Lokayukta ADGP to probe the NICE Scam and the role played by prominent politicians and top level bureaucrats. The Judge also ordered the government to seize the toll fee collected and also to resume 7000 acres of excess lands grabbed by the NICE Company. Obviously, Ashok Kheni the architect of the 'NICE scam' will take the matter up to Supreme Court, but indeed, it is for the first time that the NICE Project itself has come under the police probe.
The story started in 1983 when Deve Gowda was the PWD Minister during R.K.Hegde’s regime. Deve Gowda, proposed a separate straight and broad road which would be safe and also reduce the Bangalore-Mysore distance considerably. First, the leading businessman and liquor baron Khodays were given the task and though capable enough, yet; somehow, the project was dropped for reasons unknown even to this day.
Then, in 1995; the then CM Deve Gowda revived the proposal and proposed an exclusive Express Corridor Road between Bangalore and Mysore with 8 lanes. The concrete road was planned to minimise the wear and tear of the vehicles. According to the proposal, the land required for the Corridor Road was about 6000 acres. To make the project viable, there was the proposal to allow the contractor to build township, commercial malls, at five different places adjoining the Corridor Road and collect toll fees for 30 years. For the lands to the townships etc, it was put at 11000 acres. At the end of the 30 years period the contractor has to hand over the toll road to the government and also 40% of the lands given for Township etc along with buildings.
A Global tender was floated and Baba Kalyani group which led the consortium of a couple of European companies bagged the contract. In 1996, a Frame Work Agreement (FWA) was entered between the government and the Baba Kalyani led consortium. As per the agreement, the government lands needed for the project was to be leased to the company at the rate of Rs 10 per acre per year for 30 years. With regard to the private lands, the company had to purchase it directly from the farmers by paying market rates. There was also the stipulation of providing jobs to the dependent family who sell their lands and providing basic infrastructure to the villages. After this FWA, Deve Gowda became the PM and moved to national politics.
JH Patel, who succeeded Deve Gowda as the CM, changed the project scenario completely, allegedly, on the advice of B.S.Patil, a senior IAS Officer, who later became the Chief Secretary. The extent of lands to be given was increased by another three thousand acres and the government took over the responsibility of acquiring the lands on behalf of the company. KIADB was entrusted with the land acquisition from land owners and fixing the compensation. Without any rhyme or reason, the contractor company that is Baba Kalyani group gave way to Ashok Kheni's NICE Company. Ashok Kheni was working in USA and is related to Baba Kalyani.
The NICE Company had to deposit the land acquisition cost to the KIADB which was around 10 to 12 crores. Further, it had to deposit the compensation amount with the KIADB for disbursement to the land owners. For the government lands, the government would have easily leased it to the company with a mere government order.
Interestingly, without the NICE Company paying a single rupee towards acquisition charges, the KIADB initiated the acquisition proceedings. The company later paid a part of the acquisition cost during SM Krishna regime and that too after obtaining a loan of Rs. 150 crores from ICICI Bank.
It was roses all the way for Kheni. All along, he did not spend a single pie towards the project. In fact, he had no money to spend. Finally, with the government providing surety, he managed to obtain a huge loan of Rs. 150 crores, from the ICICI Bank. Even though the government had not handed over lands to the company, Kheni got the loan by pledging the lands and even the yet to be started project!
It is during this time, unimaginable fraud had taken place. As per the FWA, the government was to lease its lands for the project for 30 years at Rs 10 per acre per year! But Kheni got the word 'lease' changed to 'sale'! What more, he got stamp duty exemption also. And wonder of wonders, the land requirement was increased to 23 thousand acres in place of original 17000 acres! The PWD Minister Dharam Singh inaugurated the construction of the Road. Even though Kheni had to build Corridor Road between Bangalore and Mysore along with another link road from Tumkur Road to Hosur Road, he concentrated on building only the link road. He chose to acquire whatever land he fancied around the link road in Bengaluru fixing the compensation at Rs 6 lakhs per acre! The KIADB officiated as his servant and not a government agency.
In the meanwhile, hundreds of farmers have questioned the acquisition of their lands by Kheni. The High Court quashed the NICE Project itself, but, the Supreme Court gave an order directing the government to provide all assistance asked by Kheni for the NICE project. Kheni with the help of legal luminaries got Judgments in his favour and armed with the SC Judgement, he has been arm twisting the government.
Apparently, he has built only the link road and even though he can collect the toll fee only after the Bangalore-Mysore Road is completed, he has started collecting abnormal toll fee which is the highest in the country. It is only during Kumaraswamy’s regime as the CM that Kheni came to some trouble. Kumaraswamy even went to the extent of scrapping the NICE Project itself and decided to entrust the project on a Swiss Challenge method, where the successful company will utilize only the required land and collect the toll after completing the project in a time bound manner. But Yedurappa, the then Deputy CM boycotted the cabinet meeting itself along with other BJP Ministers!
Whatsoever, the NICE fraud is the culmination of the unholy nexus between Kheni, politicians and bureaucrats. Except Deve Gowda and his JD(S), no political party or leaders have opposed the NICE fraud. Since the last two years, Deve Gowda is fighting the fraud as a one man army. Kheni, who was penniless when the Baba Kalyani group bagged the project, is now worth thousands of crores today by selling lands acquired for NICE project. He has procured hundreds of acres of land all along the link road and made crores and crores by selling them making astronomical profits. In addition, his daily toll collection exceeds Rs. 50 lakhs that is 180 crores per year. He is also treating the Link Road as his private property and has decorated it with hundreds of his life size posters-flex etc.
At long last, the Lokayukta Judge N.K.Sudhindra Rao has ordered the probe into the fraud, seizure of the toll collection during the last two years and resuming about 7000 acres of excess lands procured by Kheni in the name of the project.
At last, a Daniel has come to Judgement! But, on the contrary, while the Lokayukta itself is headless, not much is expected from it. Rather, the CBI which has all the infrastructure and competency is much suitable to probe such intense and high magnitude NICE fraud which runs into multibillion.
That is all!
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