The Hindu : Tamil Nadu / Chennai News : Developer's land acquisition deal faces new hurdles

Online edition of India's National Newspaper
Wednesday, Jun 06, 2007
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Tamil Nadu

Tamil Nadu - Chennai

Developer's land acquisition deal faces new hurdles

A. Srivathsan

Economic Offences Wing of police feels Rs.34-crore price is too low

CHENNAI : The land acquisition for a housing project at the Vadakupattu village near Padappai by Hiranandani Developers faces new hurdles.

According to sources, the Economic Offences Wing (EOW) of the police is set to appeal against the land deal between the indebted Madras Motor Finance and Guarantee Company Limited and Hiranandani Developers.

The Madras High Court order, delivered in July 2006, approved a revival scheme through which 750 acres belonging to the MMFGL were transferred to five sponsoring companies, of which Niranjan Hiranandani of the Hiranandani Group of Companies was the Director.

A sum of Rs. 34 crore was agreed as the full and final settlement towards this.

In 1995, the detailed investigative report filed in the court had suggested that the land would fetch about Rs. 50 crore.

High Court order

The High Court order also stated that the sum due to the thousands of MMFGL depositors be settled without the involvement of the EOW.

Police sources say that attempts by the EOW to implead itself in the case was rejected since the court found it to have no locus standi.

The sources say that the EOW thinks otherwise and considers that the sum agreed upon, Rs. 34 crore, would not benefit the aggrieved depositors in full.

The EOW feels that the land is prime real estate and could fetch a higher price.

The money collected after proper land sale, it thinks, could be used to help the aggrieved depositors to get their money back in full.

EOW to make fresh appeal

According to sources, the EOW has now got necessary approval from the Home Department and is going to make fresh appeal against the settlement.

Meanwhile, for different reasons, the State Government has ordered a discreet enquiry and the Kancheepuram Collectorate is looking into the land deal.

The land was earlier considered available for the government to acquire for the proposed Renault automobile factory.

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