The Hindu : Andhra Pradesh / Hyderabad News : Take over I-Max, government told

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Tuesday, Dec 04, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Take over I-Max, government told

Special Correspondent

Wants the building to be converted into a science and environment museum

Multiplex construction is full of irregularities: panel report
Panel favours thorough probe by an independent investigating agency

HYDERABAD: A House Committee of the Andhra Pradesh Assembly has recommended resumption of the land with all structures thereon of the I-Max, the swank multiplex in the heart of the city, within six months in public interest.

However, endorsing the findings of the special committee of the Supreme Court, the panel too felt that the demolition of the I-Max building was not a solution and that it should be used for creating a State museum for science and environment by cancelling permissions granted to the multiplex, “in the larger interest of the public”.

The committee report tabled in the recent winter session of the House but not circulated to the media, found that the construction of the multiplex by Prasad Productions Limited was “full of irregularities and violation of rules”.

Therefore, the agreement made between the firm and the government automatically stands annulled/ cancelled in accordance with the conditions laid by the government.

‘Misuse of power’

The committee observed that the persons in power, particularly the then Chief Minister, had misused his official position and favoured a private firm, Prasad and E- Citi Entertainment right from the very inception of the project with a plan to benefit private organisation of his choice.

Government orders were issued indiscriminately favouring the firm, particularly after the contract award was executed.

The panel felt the need for a thorough probe by professional, independent investigating agency like the Central Bureau of Investigation to find out the facts and the loss to the public exchequer.

Lapses

It contended that the personal involvement and partisan attitude of the then government as well as lapses by some of the senior IAS, IPS and other officials was prima facie established. If such malpractices, gross violation of rules/regulations and laws were not checked by ordering such a CBI probe, the public welfare and safety would be at stake.

There was danger of general public loosing confidence in the government.

Adding to pollution

The committee agreed with the findings of the special committee appointed by the Supreme Court and felt the I-Max theatre complex clearly stood on sikham land forming part of the Hussainsagar and that it added to air, water, and noise pollution owing to the massive vehicular traffic and the crowds it attracted.

Observing that the government could have lost a lot of revenue owing to concessions/exemptions from payment of property/sales tax and extension of tax holiday periods, the house panel recommended a committee of experts like chartered accountants and revenue collectors to assess the actual receipts made by Prasad Productions till date, loss to public exchequer, total quantum of taxes that could have been levied and ways of recovering them.

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