The TDP demands the immediate cancellation of an agreement the state government had with the Hindujas in 2007, and a CBI probe into the issue.
The Telugu Desam Party, on Wednesday, demanded an enquiry by the Central Bureau Of Investigation, into the allotment of Wakf land to Hindujas in 2007 in Visakhapatnam - land that was allotted for the setting up of a power plant.
Addressing a press conference at NTR Trust Bhavan, Legislative Council Opposition leader Dadi Veerabhadra Rao demanded the immediate cancellation of the second agreement that the state government had with the Hindujas in 2007, during YSR's regime as Chief Minister.
He said that the agreement has caused a loss of Rs. 10,000 crore to the state.
Veerabhadra Rao had with him a copy of the proceedings of the Public Accounts Committee, which met on 10 April.
The copy shows that the PAC had decided to obtain a comprehensive report, based on the audit done by the Comptroller and Auditor General of India from the Revenue, Minorities and Energy departments, on why the power project was not set up even after 10 years of the land being allotted.
The PAC has also directed the Special Chief Secretary and Chief Commissioner Land Administration to constitute a committee to examine the issue and submit a report by 23 April.
It may be mentioned here that in February 2004, the Andhra Pradesh High Court had decreed that the title of the land allotted to HNPCL belonged to the Wakf Board. However, 4 years later, in March 2008, the government directed the Wakf Board to sell the land to HNPCL, at rates prevailing in 1999.
The Wakf Board, accordingly, sold the land to HNPCL in April 2008, at old rates, for a total consideration of Rs. 47.55 crore - as against the prevailing market value of Rs. 224.47 crore.
The PAC sought to know whether the government is empowered to direct the Wakf Board to allot Wakf lands to private parties.
Further, it asked the government why land was allotted to HNPCL without a public auction, although Section 51 of the AP Wakf Act stipulates that a sale of the property is to be affected only through public auction.
The PAC also asked the government to explain the reasons for non-resumption of the land, and for selling the land to the same party at the rates prevailing in 1999.
Further, on 1 September 2010, the HNPCL offered to surrender about 500 acres of unutilised land to the Wakf Board. However, on 5 September 2010, the Wakf Board rejected the offer.
In its questionnaire, the PAC sought to know the terms and conditions the government had in the agreement with Hindujas National Power Corporation Limited when the land was allotted initially. The project should have been completed within a period of 44 months from the date of financial closure, but it kept getting delayed upto 31 March 2001, it said.
Since the HNPCL had not set up the power plant, in 2007, APGENCO/NTPC requested the government to allot this land to them for the purpose of power generation.
Requests were also made to the government by APTRANSCO, for inviting open bids from private companies to fetch competitive lower power tariffs as against the supply of power by HNPCL on non-competitive rates.
NTPC had also requested the government to provide part of this land for the expansion of the Simhadari Extension project.
However, these options were not explored by the government, the PAC said.
Veerabhadra Rao alleged that the state government has flouted all norms to favour the Hindujas, and demanded CBI enquiry into the matter. (INN)