Hyderabad: The Raheja IT Park in Madhapur is feeling the heat generated by the Comptroller and Auditor General’s report on irregularities in land allotment.
The state government has initiated the process to recover from the Raheja Group the losses it has suffered, after the CAG report was tabled in the State Legislature in March this year. The report pointed out that the government had lost over Rs 74 crore when the Raheja group transferred land to its sister companies in violation of land allotment norms.
The Vigilance and Enforcement Department, which too inquired into the issue in 2011, also pointed out irregularities in land allotments and recommended action against the group. But no action was initiated by the then Congress government.
APIIC (now TSIIC) had invested Rs 572.53 crore between 1994 and 2015 in two joint ventures and 12 special purpose vehicles (SPVs).
One such joint venture (JV) is K. Raheja IT Park. Apart from equity, TSIIC had also contributed 109.3 acres of land to this JV.
The CAG report stated: “On the ground of proper implementation of the project, the JV firm was demerged and land was transferred (97.21 acres) to the demerged companies. The balance land (12.15 acres) was transferred to Non-IT/ITeS sister companies of Raheja Group, at a rate lesser than the rate fixed by Price Fixation Committee and without consulting APIIC. This had resulted in a loss of Rs 73.75 crore.”
Raheja also sold 4.44 lakh sq. ft space
The CAG said that the rate of return on investment in K. Raheja IT Park was as low as 0.43 per cent per annum.
Following observations made by the CAG and the vigilance department, the TS government initiated the process to recover the losses from the Raheja Group.
Official sources in the revenue department said that TSIIC and the Ranga Reddy district collector have been asked to submit a report immediately on the extent of land diverted and the value of the diverted land as per existing market rates.
The IT Park was developed on 97.21 acres of the total 109.3 acres TSIIC had contributed, and the balance 12.15 acres was diverted to sister companies of the Raheja Group: 7.6 acres to Trion Properties, Inorbit Mall and 4.5 acres to Chalet Hotel in Madhapur for Rs 18.23 crore at the rate of '1.50 crore per acre. These transactions were done in three phases between 2007 and 2008.
Besides, Rahejas also sold 4.44 lakh sq. ft of space in Raheja IT Park to its sister companies between 2005 and 2010.
TSIIC and the Ranga Reddy district collector have been told to assess the loss suffered by the government on account of these land diversions and sales made by Raheja Group without consulting APIIC.
