KPT land scam: Delhi HC orders CBI probe

At the heart of the controversy is the 16,000 acres of land owned by the Kandla Port Trust (KPT),which has been given on lease to some salt companies at a cheap price and without inviting tenders. The KPT in an affidavit filed with the Delhi High Court had admitted that the lease of 37 of the 41 contracts had expired in 2004 and for four decades the renewal has been done without holding any auction.

The Bench comprising Chief Justice Madan B Lokur and Mukta Gupta ordered the Ministry of Shipping to take a decision in connection with the CBI seeking prosecution against senior incumbent and former KPT officials in four land scam cases. The CBI has filed a chargesheet in one case,and in other three cases it has evidence and is in the process of filing chargesheets.

Besides,the court has asked the Ministry to submit an affidavit in four weeks explaining its stand — whether the disputed land — now on lease to salt companies,should be evacuated and auctioned.

A Public Interest Litigation (PIL) in this regard has been filed by the Centre for Public Interest Litigation (CPIL). According to the writ,the scam took place in the knowledge of the Union Ministry of Shipping and with the criminal connivance of senior Ministry and KPT officials. The beneficiaries of the scam are a few industrialists and hoteliers in the state and some officials in the Ministry and the KPT,it said.

The lid over the scam was blown in 2007 when the Deputy Chairman of KPT,Manoranjan Kumar sent his report to the the Ministry and the Central Vigilance Commission (CVC) about the sequence of events.

Instead of acting on these reports,the Ministry transferred Kumar along with three other accused.

The Central Administration Tribunal (CAT) termed the Ministry’s action “malafide” and asked it to pay Kumar a compensation of Rs 25,000 . Like CAT,the Delhi Court too had indicted the CVC for not acting on Kumar’s report.

In the PIL,the CPIL has annexed Kumar’s report which states that in 1960s and 70s,16,000 acres was leased out illegally and arbitrarily to a few parties on nominal rates,without any valuation or auction.

The leases were non-renewable and for a period of 30 years. About 9,000 acres was transferred resulting in a situation in which most of the land came into the possession of a few families. Despite the fact that these leases were awarded illegally and were causing a huge loss to the exchequer while benefiting a few chosen families,the Ministry renewed the leases twice,in 1996 and 2000 for a period of four years.

When these leases expired in 2003-04,the KPT recommended to the Ministry to renew the same. But despite the non-renewal,the lessees were allowed to continue in possession of the land without paying a single penny as rent.