The Hindu : Kerala / Kochi News : GIDA says no promise was made on relaxing ceiling for reclaimed land

Online edition of India's National Newspaper
Thursday, May 26, 2005

Kerala

Kerala - Kochi

GIDA says no promise was made on relaxing ceiling for reclaimed land

Staff Reporter

`Exemption becomes relevant only after sale'

KOCHI: The Goshree Islands Development Authority (GIDA), on Wednesday, told the Kerala High Court that at a pre-bid meeting for sale of reclaimed land at Marine Drive, no promise was made that those winning the tender would be given exemption from the ceiling on holdings fixed under the Kerala Land Reforms Act.

GIDA said this in an affidavit filed in response to three writ petitions challenging the cancellation of the tender confirmed in favour of K. Venugopalan Nair. Mr. Nair's firms Ansu Enterprises and Hotel Venus International had filed the petitions.

The cancellation was on the ground of violation of Clause 10 of the tender conditions which stipulated that a bank guarantee for 20 per cent of the bid amount should be furnishedwithin 180 days of the tender being accepted.

The petitioners said that they could not provide bank guarantees because the State Government had not exempted the land from the provisions of the Act. The extent of land put up for sale was above the ceiling. Under the Act, a person could hold only six hectares of land. At a pre-bid meeting, the secretary of GIDA promised that the State Government could exempt the land from the ceiling.

GIDA secretary's plea

An affidavit filed by the Ernakulam District Collector and GIDA Secretary, A.P.M. Mohammed Hanish, said the exemption became relevant only when the actual sale took place and the possession of land was transferred to the buyer. The petitioner did not insist at the pre-bid meeting that the notification exempting the land from the Act be issued prior to the date fixed for issuing bank guarantees.

Having chosen to participate in the tender process, the petitioners could not go back on their obligation. The petitioner had defaulted on paying the first instalment of the sale price. In fact, only the time for payment of the last instalment could be extended by GIDA by a maximum of three months.

The affidavit said the cancellation of the tender confirmed in favour of the petitioners had been approved by the May 21 General Council meeting of GIDA. The affidavit denied the allegation that the GIDA had no power to cancel the tender.

The hearing was adjourned to May 31.

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