Goa Govt working on compromise to release SEZ land locked in litigation

The Goa Government is working on a compromise with the promoters of the scrapped Special Economic Zone (SEZ) projects to release huge tracts of lands locked in litigation.

The Government has also promised to take the parties (local activist groups) who had challenged the ‘SEZ land scam’ in the High Court, into confidence before any compromise formula over the land in litigation is worked out with the promoters.

Goa Minister for Industries Mahadev Naik told the members in the State Legislative Assembly that nearly 38 lakh sq m of land is under litigation.

The promoters of seven SEZ projects had approached the Supreme Court challenging the State Government’s order to return the land allotted to them, after the projects were scrapped under public pressure.

They had also said the decision to scrap the SEZs was “arbitrary and illegal”.

Three of the scrapped projects had been notified by the Central SEZ authority but later denotified on the State’s plea.

The Congress, meanwhile, opposed the move to workout a compromise and insisted the land must be taken back by fighting court cases.

Chief Minister Manohar Parrikar had earlier indicated that he would explore the possibility of a compromise with the promoters by allowing them to retain a part of the land for other projects so that the Government can unlock much of the land caught in the imbroglio.

“The Government is currently in talks with the SEZ promoters for mutual understanding. If they agree, 30 per cent of land would be reserved for promoters, provided they carry out projects as per government demand and requirement.

“These promoters have invested money and they are waiting, so we will provide some relief,” Parrikar had said during discussion on the Budget in the Legislative Assembly.

However, on Friday, the Chief Minister declined to comment publicly as the matter was sub-judice.

A successful agitation by local groups against the then Congress Government got the SEZ projects scrapped. They had then challenged the legality of the allotment of the land in High Court in a public interest litigation.

The Bombay High Court in November 2010 quashed and set aside the allotment of land on lease by the Goa Government-owned Goa Industrial Development Corporation (GIDC) to the seven SEZ promoters, thus upholding the State Government’s decision to scrap the policy and the projects as being “in public interest.”

However, the Court had observed that though the land allotment made to the companies is illegal, their applications can be considered afresh by the GIDC for allotment of the same land for any lawful purpose, except for setting up SEZs.

The promoters included K Raheja & Corporation, Maxgrow Finlease, Meditab Specialties, Peninsula Pharma Research Centre, the Planetview Mercantile, Inox Mercantile Company and Paradigm Logistics & Distribution.

For the tiny coastal State, 38 lakh sq m of land under dispute is a huge setback, as its industrialisation has since been affected on account of non-availability of developed land to offer to investors, say sources in GIDC