Karnataka   

Karnataka High Court pulls up Government over factory revival

Staff Reporter

`The bureaucrats appointed to save NGEF steered it towards disaster'

BANGALORE: The Karnataka High Court on Wednesday observed that the bureaucrats appointed by the Government to revive the New Government Electric Factory (NGEF) only drove it to disaster.

The court was hearing applications from the Government for reviving the NGEF and by the Karnataka State Road Transport Corporation (KSRTC), Bangalore Metropolitan Transport Corporation (BMTC) and Bangalore Metro Rail Corporation Limited (BMRCL) seeking allotment of 53.913 acres of company land on Old Madras Road, Bangalore.

The KSRTC wants to set up a bus stand, the BMTC plans to construct a depot, and the BMRCL wishes to use the land to integrate modes of transport and build a parking complex. They filed applications seeking a direction to the liquidator appointed by the High Court to transfer or sell the land.

Former Advocate-General and senior counsel Vijay Shankar, who appeared on their behalf, said that even before the liquidator issued notices on the sale of the land, they had sought its allotment. Applications were filed after the liquidator told them that the issue was before the court.

He said 20.18 acres of NGEF land had already been notified by the Government for taking up the metro rail project. Under the notification, the Government ordered a freeze on developmental works. However, the tenders called for sale of land included the notified areas.

Justice Rammohan Reddy, who is hearing the NGEF issue, asked both parties to verify the matter and get back to court. When Mr. Vijay Shankar sought a week's time, the court sought to know from the Government what action it had taken over seven years.

The court, he said, could not delay liquidation proceedings. Taking the Government to task, he said the funds made available to the company by investors have remained unpaid.

He told BMRCL there is no sufficient material to consider its application for allotment of NGEF land. He said if any substantive material is placed, the court will look into it.

Official Liquidator P. Rama Rao said a large sum has been accepted as EMD and people have made huge investments for bidding for the land. If the sale proceeds are not finalised within a month of opening the tenders, the EMD will have to be returned.

Advocate-General B.T. Parthasarathy said the Government needs time to decide on a revival package for the NGEF. Justice Reddy said that if the Government cannot decide within a timeframe fixed by it, the court cannot wait. He reminded the Government that the court asked it to evolve the revival package but this has not been done. When Mr. Parthasarathy said the Government wants to protect the company and its employees, Justice Reddy said the State is interested in reviving the company only for real estate. Some employees complained that they have not been given their dues.

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