Date:20/07/2004 URL: http://www.thehindubusinessline.com/2004/07/20/stories/2004072001501900.htm

Back AP Govt not to probe IT land deals, for now

Our Bureau

Hyderabad , July 19

WHILE rejecting the Opposition demand for a probe into land allotments to various IT companies in the State, including to the K. Raheja Group for their Mindspace project, the Andhra Pradesh Government has said that further action would be taken only after the Cabinet subcommittee looked into the issue.

The Revenue Minister, Mr Dharmana Prasada Rao, said that the State Government had appointed a Cabinet subcommittee that was looking into all the land deals that the Telugu Desam Government made from January 2003 and any inquiry at this stage would be redundant.

The issue came up in the State Assembly when the Congress member, Mr P.Janardhana Reddy, sought a clarification from the Government whether the K. Raheja Corporation was given 110 acres of land at Rs 50 lakh per acre, which was a fraction of the market price.

To this, the former revenue minister and TDP leader, Mr Devender Goud, said that the Congress members were raising queries about various issues and without hearing their version, the discussions were being closed, presenting a one-sided view. It would, therefore, be appropriate to constitute an inquiry into the land allotment issue and put at rest all misgivings.

Intervening in the debate, the former chief minister, Mr N. Chandrababu Naidu, said that the probe was necessary to clear the air on the investment climate in the State. Attempts were being made to portray that there was favouritism in some of the land allotments. In fact, land was allotted based on a policy framework chalked out by the Government, which is linked to employment generation, he said.

Congress members wanted a thorough inquiry into various land deals and to highlight the fact that the previous government had offered land to private developers at much lower prices than the prevailing market price.

Mr Naidu said it would also be appropriate to visit some of the neighbouring States and see how they have handled land allotment to attract companies both in the IT sector and other spheres.